Futu Holdings Ltd. (FUTU) shares continued their upward climb in after-hours trading on Tuesday, following a weekend of positive news for China-based companies. This surge was driven by a series of additional stimulus measures announced by the Chinese government aimed at revitalizing its economy.
Over the weekend, China unveiled new measures including lower mortgage rates and relaxed real estate purchase restrictions. These additions come on the heels of an extensive stimulus package announced last week, which included lower interest rates and increased liquidity for the banking system.
In a further effort to stabilize the Chinese stock market, the country’s central bank is establishing a swap facility. This facility will provide non-bank financial institutions with access to at least $71 billion (500 billion yuan) in funding, allowing them to purchase shares.
As a company operating trading platforms both in China and globally, Futu stands to benefit from the increased capital flowing into the markets as a result of the intensive stimulus package. This positive outlook has attracted investor interest, leading to a remarkable 40% surge in Futu shares over the past five days.
Reflecting this positive sentiment, Futu Holdings shares closed Tuesday’s session up 12.43% at $107.54. In after-hours trading, the shares continued their upward trajectory, rising a further 0.65% to $108.24.
