Hong Kong stocks rebound as Beijing ramps up support for institutional buying
Some 20 securities firms, fund managers and insurance companies received US$7.53 billion worth of liquid assets from the PBOC through a swap facility
The Hang Seng Index rose 0.7 per cent to 19,760.27 at the close, recovering some of the 2.2 per cent decline that was recorded on the first trading day in 2025. For the week, the benchmark was down 1.6 per cent, the largest decline for a five-day period in almost two months.
The Hang Seng Tech Index gained 1.1 per cent. On the mainland, the CSI 300 Index slid 1.2 per cent and the Shanghai Composite Index retreated 1.6 per cent.
Still, the appetite for risk was subdued and investors increased their purchases of fixed-income products, a reflection of scepticism about a strong recovery in Chinese growth. The yield on China’s benchmark 10-year government bond breached 1.6 per cent for the first time in history on Friday.
Some 20 securities firms, fund managers and insurance companies received 55 billion yuan (US$7.53 billion) worth of liquid assets on Thursday from the People’s Bank of China in a swap facility that can be used as collateral for borrowing to buy stocks, the central bank said in a statement. It was the new facility’s second operation since it was introduced in September as part of a rescue package for stocks and the economy.
