Alibaba, JD.com, and WuXi Bio Spearhead Rebound in Hong Kong Stocks: Mainland Investors, Fund Inflows, and Anticipated Fed Rate Cuts Drive Momentum

Alibaba, JD.com, and WuXi Bio spearhead the comeback of Hong Kong stocks due to fund inflows and focus on Federal rates. Since Alibaba was included in the Stock Connect program this week, mainland investors have purchased Alibaba shares amounting to HK$11.6 billion.

On Thursday, the Hang Seng Index increased by 0.8 per cent, reaching 17,240.39, bouncing back from its lowest point since August 9, which it hit on Wednesday. The Tech Index also saw a boost, moving up by 0.7 per cent. However, the Shanghai Composite Index experienced a decrease, dropping 0.2 per cent to a new eight-month low.

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Why investors should brace for increased market instability following the recent worldwide stock market decline

There are anticipations for the Federal Reserve to soften its policy during the upcoming conference next week. This comes after certain financial experts recommended significant reductions in rates, following Chairman Jerome Powell's statement last month about the need for a new direction. The Fed has maintained its position in the last nine sessions, having increased rates 11 times since its initial rise in March 2022.