The Hang Seng Index experienced a remarkable surge of 548 points, rresenting a 2.8% increase, marking the largest one-day gain since early October. This rally brought the index to a nearly one-month high of 20,414 on Monday, driven by substantial gains across multiple sectors.
This upturn occurred following a subdued morning session, as traders looked past CPI and PPI data in light of a commitment from the Chinese Politburo for a more proactive fiscal policy and a moderately loose monetary policy next year. The Politburo also announced intentions to enhance unconventional counter-cyclical adjustments aimed at reversing the ongoing economic slowdown.
Additionally, anticipation builds for the upcoming Central Economic Work Conference, where President Xi Jinping and senior leadership are expected to assess policy implementations for 2024 and establish priorities for 2025. However, a sense of caution lingers among investors given a week that will be heavily influenced by central bank decisions and crucial US inflation data.
Among the top performers contributing to the market's gains were Trip.Com (up 6.6%), Meituan (6.1%), Geely Auto (4.9%), Li Auto (4.3%), and Xiaomi Corp (3.7%).
The main stock market index in Hong Kong, identified as HK50, has witnessed an increase of 3,367 points or 19.75% since the start of 2024. Analysts project that this index will reach approximately 19,344.12 points by the end of this quarter, according to global macro models. Looking ahead, an estimated figure suggests it may trade at 18,633.11 within the next twelve months.