09.02.202602:44:54UTC+00Hong Kong Stocks Rally to Begin the Week

Hong Kong's stock market experienced a notable increase of 488 points, or 1.8%, reaching 27,051 during Monday morning trading. This rebound followed a previous downturn, driven by Wall Street’s strong performance on Friday, which saw the Dow surpass the 50,000 mark for the first time. Investors shifted their focus away from concerns about AI-related expenditures, concentrating instead on optimistic U.S. growth projections and the possibility of Federal Reserve interest rate cuts. Contributing to the positive market sentiment was recent data indicating that Hong Kong’s foreign exchange reserves had reached a three-year peak in January.

The market saw widespread gains in sectors such as financials, real estate, and technology, mirroring advances on the mainland. However, some investors remained cautious ahead of upcoming Chinese Consumer Price Index (CPI) and Producer Price Index (PPI) reports later this week, as well as the Lunar New Year holiday commencing on February 15. Among the early notable performers were China Overseas Land (up 3.7%), KE Holdings (up 3.6%), SMIC (up 3.3%), AIA Group (up 2.9%), and HKEX (up 2.6%). Additionally, Montage Technology made an impressive debut on the Hong Kong Stock Exchange, soaring by 57% after raising HKD 7.04 billion through a share sale, highlighting robust demand for the world’s leading memory interconnect chip manufacturer.