Futu Holdings Sees Continued Growth After China Announces Stimulus Measures
Futu Holdings Ltd. (FUTU) shares continued their upward trajectory in after-hours trading on Tuesday, following the announcement of additional stimulus measures by the Chinese government aimed at boosting the country's economy.
The announcement, made over the weekend, included measures such as lower mortgage rates and looser real estate purchase restrictions. These new measures come on the heels of a comprehensive stimulus package announced last week, which included lower interest rates and increased liquidity for the banking system.
In addition to these measures, China's central bank will establish a swap facility providing non-bank financial institutions access to at least $71 billion (500 billion yuan) in funding for purchasing shares. This initiative aims to stabilize China's stock market.
Futu, which operates trading platforms in China and globally, stands to benefit from the increased market capital resulting from the extensive stimulus package. Futu shares have surged over 40% in the past five days as investors flock to U.S.-traded Chinese stocks.
At the close of Tuesday's trading session, Futu Holdings shares were up 12.43% at $107.54. In after-hours trading, shares continued their upward climb, rising 0.65% to $108.24.