Hang Seng Index Rises Supported by China's Interest Rate Hold and Tech Stock Momentum

Hong Kong | EcoPulse24

The Hong Kong stocks continued their gains in morning trading on Monday, as the Hang Seng Index rose by 71 points, or 0.3%, reaching 25,762 points, marking its highest level in over a week and achieving a fourth consecutive daily gain amid improved global sentiment.

This performance aligns with the positive session on Wall Street at the end of last week, where technology stocks led the gains, fueled by renewed optimism in the artificial intelligence sector, impacting Asian markets, particularly Hong Kong.

The market also received additional support from the People's Bank of China's decision to keep the benchmark interest rates at their record low for the seventh consecutive meeting, signaling a continuation of supportive monetary policy as China's economy remains on track to meet this year's growth targets.

Furthermore, news about ByteDance reaching an agreement with three major investors to establish a joint venture to operate TikTok in the United States boosted risk appetite, adding further momentum to technology stocks and digital sector-related companies.

Across sectors, most groups recorded positive performance, including non-energy metals, manufacturing, and technology services. Leading the gains were Semiconductor Manufacturing International Corp with a 4.2% increase, followed by Zijin Mining Group at 3.6%, and Pop Mart International Group at around 3.4%, along with Li Auto rising 2.9% and Baidu up 1.7%.

This performance reflects improved confidence in the Hong Kong market, supported by a combination of supportive monetary factors from China, strong momentum in the technology sector, and a better global investment mood.