Hong Kong stocks leap by most in 7 months after China rolls out stimulus package

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Hang Seng Index rises 3.3 per cent as all but five stocks in the gauge gain, led by financial companies and property developers

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A cleaner sweeps the grounds in front of the People’s Bank of China headquarters in Beijing. Photo: Bloomberg

Zhang Shidongin Shanghai

Published: 10:03am, 24 Sep 2024Updated: 12:24pm, 24 Sep 2024

Hong Kong stocks jumped by the most in seven months after China unveiled a broad package of stimulus measures to bolster the economy and the equity market, ranging from new financing facilities for share buy-backs to cuts in borrowing costs.

The Hang Seng Index rose 3.3 per cent to 18,845.37 at the noon break, heading for the biggest gain since February 6. The Hang Seng Tech Index surged 4.2 per cent, and the Shanghai Composite Index added 2.4 per cent.

The onshore yuan strengthened against the US dollar, while the yield on China’s benchmark 10-year government bond rebounded from a record low.

All but five stocks on the 82-member Hang Seng gauge rose, with financial companies and property developers leading the charge.

To support the stock market, China will set up a swap facility that will allow brokerages, mutual funds and insurers to tap funding from the central bank, Pan Gongsheng, governor of the People’s Bank of China, said at a press conference in Beijing on Tuesday. The initial size of the programme will capped at 500 billion yuan (US$71 billion) but may be expanded in the future, he said.