From MarketWatch, September 26:
Hang Seng hits a new one-year high on report of possible capital injection to banks
Hong Kong’s equity market hit a one-year high and led a surge in global stocks early Thursday, as the China-stimulus rally received further propulsion from a report Beijing was considering a $142 billion capital injection into the country’s big banks.
The Hang Seng Index HK:HSI in Hong Kong jumped 3.3%, taking its gains to 8.4% over just the last three days after the Peoples’ Bank of China on Tuesday revealed a swathe of stimulus measures designed to aid the beleaguered housing sector, support the stock market and help the economy hit Beijing’s economic growth target of 5%.
The HSI’s bounce took it to its highest level since July 2023. Asian XX:ADOW and European bourses XX:SXXP joined in the rally and futures ES00 indicated that the S&P 500 would jump 0.7% to a new record at the opening on Wall Street, with sentiment further underpinned by Micron’s MU results and hopes for a ceasefire between Israel and Hezbollah.
The latest advance for equities came after Bloomberg reported that China’s government was also considering a 1 trillion yuan ($142 billion) capital injection into the country’s big banks to encourage lending.
And there was also verbal support from China’s politburo, which said on Thursday that it would make efforts to boost the capital markets, utilize fiscal spending to support the property sector, and would use “forceful” interest rate cuts if required....
...MUCH MORE
Our bogey, the Shanghai - Shenzhen CSI 300 index is up another 143.79 (+4.23%) at 3,545.32. Here's the graphical look (one month) via TradingView:
Over the last five trading days the index is up 11% and because the money isn't yet flowing a pullback is quite possible.
Filling that gap on the 24th seems rather obvious, eh what?
