The Hang Seng Index jumped 4.2 per cent to 21,508.37 at the noon break, set to snap a two-day, 11 per cent decline. The benchmark has dropped 5.4 per cent so far in the shortened trading week, as the city’s financial markets will be shut on Friday for a public holiday. The Hang Seng Tech Index also gained 4.2 per cent.
The CSI 300 Index rose 2.9 per cent, bouncing back from a 7.1 per cent slump a day earlier. The Shanghai Composite Index rallied 3 per cent.
The swap facility is part of a combined 800 billion yuan in new funding tools announced by the PBOC last month to boost liquidity on the stock market. The package also includes a 300 billion yuan relending programme to finance stock buy-backs and stake increases by listed companies and major shareholders.
Investors will closely scrutinise a press conference by Finance Minister Lan Foan on Saturday. Hopes are high that Lan will announce or offer clues on the much-heralded fiscal stimulus after top leaders signalled an all-out pivot to prop up economic growth.
