On Tuesday, January 23rd, the Hong Kong stock market opened high and continued to rise. The Hang Seng Index surged shortly after the opening, rising more than 3% at one point before slightly pulling back. The Hang Seng Technology Index also soared, with an increase of over 5% at one point and currently up more than 4%.
What happened? The &#34;short essay&#34; is back!
According to Bloomberg, the Chinese government is considering multiple measures to support the market, including the establishment of a stock market stabilization fund of approximately RMB 2 trillion (USD 278 billion), which will be funded mainly by overseas institutions through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs, and invested in A-shares.
Anonymous sources also mentioned that the authorities are considering injecting at least RMB 300 billion of local funds into A-shares through either China Securities Finance Corporation or Central Huijin Investment Ltd.
In addition, officials are also considering other measures, which could be implemented as early as this week if approved by the highest leadership. These plans have not been finalized and there are still uncertainties.
<img src="https://pub.pbkrs.com/cms/2024/0/6rEVwHs72g64ykM5Xqeo9wGj4pFTaGRF.jpg?x-oss-process=style/lg" alt="Image" original-src="https://pub.pbkrs.com/cms/2024/0/6rEVwHs72g64ykM5Xqeo9wGj4pFTaGRF.jpg"/>

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The Hang Seng Index rose by 3%, while the Hang Seng TECH Index rose by 4%! It is reported that China is considering multiple measures to support the market, including the establishment of a RMB 2 trillion stabilization fund.

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