Why Chinese Stocks Reached 20-Month Highs This Week
After getting a shot of adrenaline last week, Chinese stocks continued their march higher, hitting highs this week not seen since the very beginning of 2023. The Hang Seng index including the largest companies on the Hong Kong Stock Exchange is up more than 14.5% over the last five days.
Shares of fast-food chain Yum China Holdings (NYSE: YUMC) had risen nearly 9% as of this writing. Meanwhile, shares of e-commerce companies PDD Holdings (NASDAQ: PDD) and JD.com (NASDAQ: JD) traded nearly 14% and 12% higher, respectively.
Following the U.S. Federal Reserve's 50-basis-point cut and numerous investors and economists suggesting that the Chinese economy would be in trouble barring some form of intervention, the market got its wish. China's central bank lowered interest rates and announced stimulus measures ranging from lowering bank reserve requirements to dropping mortgage rates and down payment requirements to injecting capital into Chinese banks and other financial firms.
Source Fool.com
