Hong Kong stocks surge in best month since November 2022 as property stimulus fuels gains

The Hang Seng Index surged 3.3 per cent to 21,321.97 at the local noon trading break. The benchmark has advanced 18 per cent in September, heading for the best month since November 2022. The Tech Index soared 7.1 per cent. The Shanghai Composite Index advanced 5.7 per cent and the CSI 300 Index jumped 6.2 per cent.

Traders stepped up bets on Chinese equities as UBS and Nomura raised their year-end targets for major benchmark indices, before Hong Kong’s financial markets takes a breather on Tuesday for the National Day. The onshore markets will stop trading through October 8.

Chinese developers led gainers. Longfor Group surged 19 per cent to HK$16.34 and China Resources Land jumped 3.5 per cent to HK$28.90. Alibaba Group Holding gained 9.9 per cent to HK$112.60 and rival JD.com strengthened 8.8 per cent to HK$165.30. Hong Kong Exchanges and Clearing added 8.5 per cent to HK$334.80.

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China posts 4.7% second-quarter growth, lower than expected

China posts 4.7% second-quarter growth, lower than expected

“We expect the near-term momentum to continue ahead of the actual fiscal response given improved market sentiment and low positioning,” said James Wang, head of China strategy at UBS in Hong Kong. “A combination of support for consumption and for local government financing would be most well-received by investors.”