Business
Hong Kong Stocks Rebound Amid Disappointing GDP Data: A Glimmer of Hope for More Stimulus, Aiming for 5% Growth Target
Hong Kong shares stop the downward trend of four consecutive days as uninspiring GDP figures spark optimism for further fiscal stimulation. Investors are expecting a rise in government expenditures and bond offerings to reach the 5 per cent growth objective.
The Hang Seng Index experienced a significant increase of 3.6 per cent, closing at 20,804.11, which reduced the weekly loss to 2.1 per cent. An overwhelming majority of the 82 members on the benchmark, precisely 80, saw gains, suggesting a widespread improvement in sentiment. The Hang Seng Tech Index also rose by a notable 5.8 per cent.
Mainland indices also saw progress. The CSI 300 Index surged by 3.6 per cent, while the Shanghai Composite Index increased by 2.9 per cent.
A different study revealed that house prices fell for the 16th straight month in September, indicating that attempts to rescue the real estate market haven't been successful so far.
Shares in Hong Kong and China are having difficulty maintaining the progress achieved since September's end, following the announcement of a large-scale stimulus by senior officials to combat a decline in growth. Investors are closely monitoring the upcoming meeting of the National People's Congress' standing committee. This assembly is anticipated to sanction an escalation in government expenditure and sovereign bond offerings as constituents of the financial package.
Moving into the last quarter of the year, David Chao, a strategist at Invesco, plans to closely monitor any additional financial aid efforts. He predicts that the Chinese economy will maintain its steady growth through the closing months of the year, bolstered by increased financial aid, a rise in domestic spending, and a robust worldwide economic environment.
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