Hong Kong Shares Surge on Report of $278 Billion China Market Rescue Package
• Hong Kong’s Hang Seng index rose 2.6% on Tuesday following a report that Beijing was considering a $278 billion package to support China's stock market.
• The support package is intended to stabilize the market amid worries about economic growth, the property sector crisis, tensions with Washington, and reluctance from authorities to consider a large stimulus.
• The fund would utilize about 2 trillion yuan ($278 billion) primarily from the offshore accounts of Chinese state-owned enterprises.
• The Shanghai Composite also rose on Tuesday, but some analysts doubt the fund would be enough to provide a sustainable rally given the $6 trillion wiped off Chinese and Hong Kong shares since their 2021 peak.
• U.S.-listed shares of Chinese companies like Alibaba, Yum China, and the iShares MSCI China ETF were up in premarket trading following the report of Beijing's support package.