Hang Seng Soars on Bargain Hunting and Policy Support
The Hong Kong stock market rallied on Tuesday (March 24), with the Hang Seng rising 681 points, or 2.8%, to close at 25,064. This gain halted a three-day downtrend, supported by gains across sectors as investors sought bargain hunting after the local market briefly hit its lowest level since early August.
Sentiment also improved after US President Donald Trump called talks with Iranian officials "productive," although Tehran denied any negotiations. This signal of de-escalation provided a temporary respite for a market previously weighed down by energy volatility and fears of conflict.
In mainland China, stocks also rebounded after reports emerged that China would halve a planned fuel price increase to ease the burden on drivers. Furthermore, People's Bank of China (PBoC) Governor Pan Gongsheng reiterated his commitment to maintaining supportive policies to promote stable growth and maintain financial market stability—factors that helped strengthen risk appetite.
Nevertheless, caution remains in place ahead of the release of Hong Kong's February trade data, following a shift to a deficit in December. This data is in focus as it could signal the strength of external demand and the state of economic activity.
In terms of individual stocks, Alibaba Hong Kong rose 3.3% after introducing a new generation chip for agentic AI. China Resources Beer jumped 8.2% following a stronger sales report. Li Ning rose around 0.44% after providing positive guidance. Cathay Pacific gained 1.7% after extending flight cancellations to Dubai and Riyadh until May.
Newsmaker's takeaway: The Hang Seng Index rally was driven by a combination of "share hunting" after the sell-off, more supportive policy signals from China, and hopes for geopolitical de-escalation. However, the market will remain sensitive to Iran headlines and Hong Kong trade data, which could test the strength of this recovery.
Source: Newsmaker.id
