Hong Kong Market Rallies to 2021 Peak Levels

Hong Kong shares jumped 378 points, or 1.4%, to 27,238 on Thursday morning deals, extending gains for the third session as trading resumed after Wednesday’s break.

The Hang Seng index hit its highest level since July 2021, following a modest rise on Wall Street overnight as investors looked past U.S. government shutdown concerns and digested data reinforcing bets the Fed will keep cutting rates this year.

Sentiment was further buoyed by the PBoC’s recent pledge to strengthen coordination with fiscal policy to bolster growth.

On the data front, China’s current account surplus surged to USD 128.7 billion in Q2, more than double the amount a year earlier.

Most sectors advanced, led by tech on strong gains from SMIC (7.6%), Kuaishou (7.5%), Tencent (2.6%), and Meituan (2.4%).

Consumer and financial shares also rose as traders welcomed reports of an October plenum to map China’s 5-year economic strategy.

Still, upside was limited with mainland markets shut until Oct. 8 for Golden Week.