Hong Kong stock markets celebrate gains for the sixth consecutive day

The stocks in Hong Kong recorded gains for the sixth consecutive day, reaching a 22-month high. This development follows the recent market surge in China, as BlackRock announces further economic stimulus measures from Beijing. The Hang Seng Index jumped 6 percent to 22,401.74 at the midday break, the highest level since January 2023. The Hang Seng Tech Index rose by 8.7 percent. An indicator tracking Chinese stocks in the U.S. gained 5.5 percent overnight. Markets in mainland China are closed this week due to a holiday. Out of the 82 members of the Hang Seng Index, only five did not gain. The food delivery platform Meituan rose by 14 percent to HK$196.10, the e-commerce platform JD.com jumped 12 percent to HK$187.50, and the search engine operator Baidu recovered by 11 percent to HK$117.70. The Hang Seng Index's increase of 1,268 points on Wednesday marks the largest single-day gain since November 2022, when China lifted its strict Covid-19 controls. The index has risen by 23 percent over the last six trading days, spurred by policy changes in Beijing, representing the fastest bull market since 2008. According to Bloomberg data, more than USD 770 billion in market value has been restored. Wall Street banks, including Morgan Stanley, are now rushing to raise their targets for key Chinese indices following the rally that pressured short sellers by nearly USD 7 billion. "We see room to turn modestly overweight on Chinese stocks in the near term," said strategists at the BlackRock Investment Institute, including Wei Li, in a note on Tuesday. Another fiscal stimulus could follow, encouraging investors to get on board, the analysts noted. On Wednesday, shares of electric vehicle manufacturers also contributed to the increase. Li Auto rose by 11.9 percent to HK$121, and BYD increased by 7.1 percent to HK$304, after setting new sales records last month. At the same time, Longfor rose by 26 percent to HK$18.94, and China Resources Land increased by 10.1 percent to HK$31.55, contributing to a 12.2 percent gain for mainland developers in Hong Kong. The increase came after three of China's largest cities eased property purchase restrictions to support the market. However, Chinese kitchenware manufacturer Carote fell by 15 percent on its first trading day in Hong Kong, closing at HK$8.06 per share. Other Asian markets, on the other hand, traded lower due to rising tensions in the Middle East. Japan's Nikkei 225 Index lost 1.5 percent, South Korea's Kospi Index weakened by 0.4 percent, and Australia's S&P/ASX 200 Index remained nearly unchanged.