The Hang Seng Index experienced a significant rebound on Friday, surging 725 points or 3.6% to close at 20,804.
This upswing reversed a 1% decline from the previous session, with gains across all sectors. Traders reacted positively to the Chinese central bank's announcement detailing measures aimed at revitalizing stock markets. This announcement followed the release of official data indicating that China's economy grew by 4.6% year-on-year in Q3 2024, the slowest growth in six quarters.
Additionally, PBoC Governor Pan Gongsheng suggested that the Reserve Requirement Ratio (RRR) might be further lowered in Q4 to foster economic recovery. In response to these developments, Hong Kong has revealed plans to streamline its listing process to attract more investors.
Notable performers included Semicon Manufacturing, which saw a remarkable 16.9% jump after strong earnings from Taiwan's TSMC. Other significant gainers included BYD Electronic Intl. (12.5%), Wuxi Biologics (9.0%), Alibaba Health (8.6%), and Trip.Com (7.5%).
Despite Friday's strong performance, the Hang Seng Index fell 2.1% for the week, marking its second consecutive decline. This downturn has raised concerns about Beijing's ability to dloy substantial fiscal support to achieve a 2024 growth target of approximately 5%.
Since the start of 2024, the main stock market index in Hong Kong (HK50) has risen by 3,757 points or 22.04%. Analysts predict that the index will trade at approximately 20,341.17 points by the end of this quarter, with a further estimate of 18,136.92 in the next 12 months, according to global macro models and analyst expectations.