Grapevine

Hong Kong stocks rally more than 5% in sixth straight day of gains

SINGAPORE — Hong Kong's Hang Seng index was up over 5% on Wednesday, hitting a 22-month high for a sixth day of gains amid further optimism about Beijing's latest stimulus policies.

Traders returned from a public holiday on Tuesday, with property developers fueling much of the gains. China Vanke , Longfor Group and Logan Group were leading, up over 40%, 32% and 31%, respectively, after major cities in mainland China introduced some easing measures to enhance homebuyer confidence over the weekend. Chinese tech giants were also rallying, with Meituan , Baidu and JD.com all up over 10%.

Markets in mainland China were closed Wednesday and will remain so for the rest of the week due to the Golden Week holiday. Chinese stocks had rallied Monday to their best day in 16 years after Beijing announced a raft of stimulus measures last week, including interest-rate cuts, cutting reserve requirements for banks and providing more liquidity to investors.

Speaking to CNBC's "Street Signs Asia" James Sullivan of JPMorgan said he was remaining "cautious" about the big market rally in China due the stimulus measures so far focusing on supply and investment rather than consumption.

"The million dollar question in China right now is, does [the stimulus] only flow into the supply side of the equation, or does it ultimately flow through into consumer demand? That's not our expectation right now," Sullivan said.