Business
US$592 Billion Rally Spurs Stock Surge: China’s Stimulus Package Fuels Momentum Despite Potential Unsustainability
Shares skyrocket in a $592 billion upswing as investors eagerly seize China's stimulus package. However, the market slowed down in the afternoon due to concerns that basic financial factors may not back a lasting surge, according to analysts.
On Wednesday, the Hang Seng Index increased by 0.7 per cent, closing at 19,129.10, which marks a four-month peak, this followed a surge of as much as 3.1 per cent earlier that day. The Tech Index also saw a rise of 0.2 per cent. The indicator that observes the largest mainland corporations grew by 1.5 per cent, which is the most significant one-day leap since 2020.
In the Hong Kong market, Tencent Holdings saw a surge of 1.4 per cent, bringing its value to HK$408. Similarly, e-commerce firm JD.com experienced a growth of 1.5 per cent, raising its valuation to HK$126.50, and insurance company AIA's value increased by 0.9 per cent to HK$60.20.
On the mainland, electric vehicle manufacturer BYD saw a 3.4 per cent increase, reaching 262.80 yuan. Similarly, alcohol producer Kweichow Mao-tai experienced a 1.9 per cent rise to 1,399 yuan, and battery producer CATL recorded a 2.8 per cent boost to 203.10 yuan.
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