From CNN: 2024-04-30 04:54:00

Hong Kong’s Hang Seng Index surges over 7% in April, becoming the best-performing major index globally and heading into a bull market. Factors include improving economic landscape, cheaper valuations, and mainland investors protecting portfolios from weakening Chinese currency. Chinese economic data is turning positive with GDP growth and manufacturing activity increasing.

Beijing is considering launching a national platform to acquire unfinished housing projects for affordable housing, learning from Japan’s approach to stimulate the property sector. Chinese equities listed in Hong Kong are becoming more attractive compared to Indian markets. Global investors may see a rotation of funds into Chinese equities due to attractive valuations and FOMO.

Mainland Chinese investors are driving strong inflows of money into Hong Kong-listed stocks, buying nearly $20 billion in March and April to diversify currency exposure amidst yuan depreciation pressure. The Chinese yuan has lost 4% of its value against the US dollar in the past year. The People’s Bank of China has maintained loose monetary policies to combat deflation.



Read more at CNN: Hong Kong stocks are back from the dead. Here’s why