The Hang Seng Index added 1.6 per cent to 16,660.76 at the noon break, taking to almost 1 per cent the gain in March. The Hang Seng Tech Index jumped 3.8 per cent and the Shanghai Composite Index added 1.1 per cent.
It is a shortened trading week for the city’s stock market, which will be closed this Friday and next Monday for public holidays, although mainland China will be open for business.
“It’s sending a message that China will be more proactive in striving for economic development goals and in its policy tone,” said Zhang Xia, an analyst at Great Wall Securities. “That may speed up the implementation of relevant policies on new-quality productive forces.”
The Hang Seng Index has seen range-bound trading after various market intervention moves made by authorities, including state-led buying and curbs on quant investment funds, boosted the gauge by almost 4 per cent in February. Investors are now shifting their focus to corporate earnings and economic data to assess the sustainability of the rebound.
“We see 2023 as a moderately negative set of results for ICBC,” said HSBC analysts in a note. “As negatives, PPOP (Pre-provision operating profit) pressure was larger than we expected due to sharp NIM (net interest margin) compression and ongoing fee income pressure.”
HSBC cut the 2024 earnings forecast for ICBC by 1.2 per cent and that for 2025 by 2.3 per cent to reflect revenue concerns.
Four companies made their trading debuts. In Hong Kong, Fujing Holdings, a producer of potted vegetables, surged 81 per cent from its IPO price to HK$1.96 and Lianlian DigiTech, a digital pay service provider, dropped 4.5 per cent to HK$9.76.
In Shenzhen, SigmaStar Technology, a manufacturer of semiconductor devices, jumped 178 per cent to 44.88 yuan and Pamica Technology, which makes insulating materials, rallied 72 per cent to 29.85 yuan.
Other major Asian markets were mainly lower. Japan’s Nikkei 225 slid 1.2 per cent South Korea’s Kospi retreated 0.1 per cent, while Australia’s S&P/ASX 200 added 0.9 per cent.