Hong Kong and Mainland Markets Rally as Central Bank Signals Support Measures

The Hang Seng Index closed 0.42 % higher at 23,393, with the tech index up 2.25 % and the China Enterprises Index up 0.56 %. In mainland China, the Shanghai Composite gained 1.08 % to 3,638, the CSI300 rose 0.8 %, Shenzhen climbed 1.63 % to 11,010, and the ChiNext surged 1.87 % to 2,458. The rally followed reports that the People’s Bank of China and the securities regulator would meet brokerages and fund managers to discuss new support measures. The central bank also injected liquidity and shifted its main policy rate to an overnight lending rate, a move expected to ease funding conditions. Meanwhile, the yuan reached a more‑than‑four‑year high against the dollar as investors focused on this week’s U.S. midterm elections.