China's Foreign Exchange Reserves Soar, Hong Kong Stock Exchange Rises
The Hang Seng Index strengthened on Monday (February 9), rising 467 points or 1.8% to close at 27,027. After being dragged down sharply in the previous session, the market immediately changed its mood as gains were evenly distributed across almost all sectors.
The wind of hope came from Wall Street. The Dow Jones Industrial Average broke through 50,000 for the first time after chip stocks rebounded, and the market was once again abuzz with speculation about the possibility of future Fed policy easing. This sentiment carried over to Asia and boosted risk appetite.
In China, the market also improved after several brokers encouraged investors to hold positions ahead of the Lunar New Year holiday. The narrative was simple: the last correction was deemed to have run out of steam, so many were starting to return to the market.
Data also provided support. China's foreign exchange reserves reached USD 3.399 trillion in January—the highest level since 2015 and had risen for seven consecutive months. Meanwhile, gold-linked stocks rallied as the People's Bank of China (PBOC) continued its gold buying spree, marking the 15th consecutive month.
Gold-linked stocks were in the spotlight: Laopu Gold surged 5.6%, followed by Zijin Gold International and Chow Tai Fook, which both rose around 2.9%. Gold sentiment regained prominence amidst global markets still sensitive to interest rate issues and geopolitical risks.
Beyond that, several stocks also surged on corporate catalysts. Innovent Biologics rose 7.4% after partnering with Eli Lilly, Minth Group rallied 7.0% after proposing an AI robotics joint venture in the US, while Meitu rose 5.1% on solid revenue prospects.
Source: Newsmaker.id
