It was only last Friday that the Hong Kong market soared extremely high. The market was boosted by 8%. It was after 14 days that the market was able to touch the mark of 16160 points.
Experts believe the market surged for even more than 1140 points, which was a very positive sign for all the investors who had invested in the market just this week. It is expected that the bullish mode of the market will be extended for the coming week.
Not only the stock market of Hong Kong but also the stock markets of most Asian countries have displayed a positive performance in the last week.
Why Hong Kong Stock Market Extended Its Gains?
According to the data, the Asian markets will upbeat the markets of The United States of America. This gain in the Hong Kong market has boosted different types of companies dealing in real estate and Technology.
Their stocks have doubled. The signs of the market’s positive reaction were available right from the beginning of the week when against the commencement with 1500 points, the market was launched with 1650 points. It has probably been for the first time in six months that the bourse has swollen so much.
Stocks That Benefitted
The stocks of the leading Multinational Companies listed on the exchange have benefited due to this boost. Of all the companies, Alibaba reported a 10% increase in its stock value. ANTA sports also displayed a spike of 8%.
China life insurance and CSPC Pharmaceuticals climbed a total of 7% and 3% in terms of their value. The new companies such as Meituan and Xiaomi also displayed their best performance by giving around 15% and 10% of the respective Returns.
Apart from these companies, most of the small Mid Cap companies displayed a positive response; on average, their growth rate was 4.35 percent. It was the highest target achieved by these stocks in almost 6 months for the very first time.
This boost to the stock value is being enjoyed even despite the world approaching a global recession. But whether these changes are for a short interval or a long one has yet to be ascertained. Market analysts have been working toward the proper Analysis of data to understand the market’s future performance.
How Does The Market Respond To The Global Economic Crisis?
It cannot be said with certainty that there would be no impact of globalization on the Hong Kong market just based on a recent spike in the indices. It has been only for a matter of two weeks that the market has reported gains.
It is not certain if these prophets would continue for the time being. To reach any conclusion, observance of the market trends in the upcoming weeks is crucial.
That information will help draw a conclusion concerning what stocks should be considered safe stocks and which investments will likely cause losses. It is very important to understand the exact methodology, with the help of which the market observation should be strengthened to reach fruitful conclusions. This information is vital from the perspective of global Trading patterns and investment decisions.
The exact reason why the market has been able to respond so positively is not yet known. Every possible attempt is made to understand the changes in the market.
It is assumed that these changes are all due to the performance recorded by most Hong Kong startups and companies. If this is the reason, these benefits could be sustained longer.
I’ve been writing about LGBTQ issues for more than a decade as a journalist and content writer. I write about things that you care about. LGBTQ+ issues and intersectional topics, such as harmful stories about gender, sexuality, and other identities on the margins of society, I also write about mental health, social justice, and other things. I identify as queer, I’m asexual, I have HIV, and I just became a parent.