Posted 2/16/2024, 5:58:00 AM
Hong Kong Stocks Rally on Hopes of China Market Rebound
- Hong Kong’s Hang Seng index shot up on Friday as traders piled into China-exposed stocks before the reopening of mainland markets after a week-long holiday next week.
- Local media reports showed that Chinese travel demand rose sharply during the week-long Lunar New Year holiday, driving up some hopes that consumer spending was recovering.
- Whether the increased holiday spending will translate into broader improvements in the economy remains to be seen.
- The Chinese economy was battered by a prolonged property market crisis, while sluggish consumer spending saw the economy slip into deflation by end-2022.
- The Shanghai and Shenzhen indexes were hovering just above respective five and four-year lows last week, and saw little relief even as Beijing directed its biggest sovereign funds towards shoring up local markets.