On Friday, Hong Kong stocks surged, driven by technology and banking shares. This was due to dovish comments from the US Federal Reserve and Apple’s announcement of a massive share buy-back plan. The Hang Seng Index rose by 1.4% to reach 18,461.65 at 10am, marking a 20% increase from its January low.
The Hang Seng Tech Index also saw a significant increase following Apple’s board approval of an additional US$110 billion in share repurchases. Market leaders Tencent and Alibaba led the way in terms of turnover, with Tencent rising by 0.8% to HK$363.20 and Alibaba increasing by 3.3% to HK$78.60.
Despite China’s onshore stock exchanges being closed for the week, positive sentiment persisted after China’s top policymakers indicated further measures to support economic growth during the Politburo meeting on April 30. BofA Securities noted that potential interest rate and RRR cuts could help lower financing costs and support the real economy.
The focus on China’s economic direction became more pronounced during the Politburo meeting, with interest rate and RRR cuts being key factors discussed. Banking and insurance shares in Hong Kong also saw gains, with China Construction Bank and Industrial and Commercial Bank of China rising by 1.6% and 1.4%, respectively, while insurance giants AIA and Ping An also saw increases in their stock prices