BANGKOK (AP) — The Asian stock market saw mostly positive movement on Tuesday, with significant gains in Hong Kong and Shanghai following reports of Beijing’s plans to inject about 2 trillion yuan ($278 billion) to stabilize the struggling Chinese markets. The unconfirmed report by Bloomberg, citing unnamed sources, stated that China intends to utilize offshore funds held by Chinese state-owned enterprises and local funds.
The Hang Seng in Hong Kong surged by 3.2% to 15,434.69, while the Shanghai Composite index rose by 0.7% to 2,776.06. The Shanghai market had previously experienced a decline due to investor disappointment over China’s decision to maintain the loan prime rate, despite concerns about the economy’s outlook, which is expected to slow down after a rapid post-pandemic recovery.
On Monday, Shanghai’s benchmark fell by 2.7%, reaching its lowest levels since 2019. The Hang Seng had also dropped by about 12% by Monday’s close. Despite the potential impact of a significant rescue plan to mitigate these losses, the situation remains uncertain.
2024-01-23 01:56:15
Original from finance.yahoo.com