Business
Earnings Optimism Fuels 2-day Surge in Hong Kong Stocks led by China Unicom, Xinyi Solar, and HKEX: A Sustainable Rebound in Sight?
Shares in Hong Kong experience a two-day surge due to positive earnings outlook and proposal for a stabilization fund. China Unicom, Xinyi Solar, and HKEX are the top performers, with an analyst suggesting this recovery could be long-lasting.
The Hang Seng Index increased by 1.3% to reach 20,760.15 at the close of trading. China Unicom, a telephone service provider, saw growth after announcing an increase in quarterly profits, while Xinyi Solar Holdings led the surge in Chinese solar energy stocks due to anticipations that Beijing will intervene to eliminate excess supply. The Hang Seng Tech Index also experienced a rise, going up by 1.9%.
Benchmarks in Mainland China also saw a slight increase, as the CSI 300 Index rose by 0.4 per cent and the Shanghai Composite Index gained 0.5 per cent.
Investors are preparing for the quarterly reports of 22 firms listed on the Hang Seng Index by the end of this month, such as HSBC, BYD and the Industrial and Commercial Bank of China. Alongside the unfolding of the earnings season, investors will also be closely monitoring developments in China's fiscal stimulus. The National People's Congress' standing committee is set to convene in the upcoming weeks to discuss matters like government expenditure and the sale of sovereign bonds.
"Forecasts for economic and earnings growth are becoming more positive following the introduction of stimulus packages," stated Xue Jun, a financial analyst at Orient Securities in Shanghai. "Considering the low valuations and the context of the US rate cut, it's anticipated that the stock market recovery will persist."
Up until now, four components of the Hang Seng Index have revealed their third-quarter outcomes, showing an average earnings increase of 55 per cent, based on Bloomberg statistics. This is a significant increase from the previous quarter, which saw a growth of just 7.7 per cent.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.