[Featured Stocks] Domestic Listed Chinese Companies 'Fire Pillar'... Hengsheng Group Hits Upper Limit, All 11 Stocks Rise

Supply and Demand Imbalance After China's Large-Scale Economic Stimulus
All 11 Domestic Listed Companies Rise
"Reflecting Expectations of China's Economic Rebound"

Hengsheng Group recorded a limit-up. In addition, Chinese companies listed on the domestic stock market are showing a simultaneous rally due to the economic stimulus triggered by China's 'surprise interest rate cut.'

As of 9:16 a.m. on the 25th, Hengsheng Group is trading at 300 won, up 29.87% (69 won) from the previous close. Headquartered in Yonghojin, Jinjiang City, Fujian Province, China, Hengsheng Group is a company engaged in the production of character toys and children's clothing using content intellectual property (IP), as well as animation production. It has 1,685 employees and is led by CEO Huimankit.

Other listed companies based in China are also rising together. Coloray (18.85%), Organic T Cosmetic (11.11%), and Crystal New Materials (11.30%) are all up by double digits, while East Asia Holdings (4.41%), Roswell (4.78%), Wingip Food (5.75%), CXI (4.82%), Global SM (2.67%), Fidelix (0.27%), and GRT (0.51%) are showing upward trends. According to Shinhan Investment Corp., all 11 stocks belonging to the China-themed group listed domestically are rising.

The day before, the People's Bank of China (PBOC) announced plans to cut the reserve requirement ratio (RRR) for banks by 0.5 percentage points (50 basis points) soon, providing long-term liquidity of 1 trillion yuan to the financial market. Along with this, it mentioned that it would lower the loan prime rate (LPR), the medium-term lending facility (MLF) rate, and mortgage rates, which effectively serve as benchmark interest rates. Additionally, financial regulatory authorities lowered the minimum down payment ratio for second homes, presenting measures to improve the real estate slump. This is a large-scale economic stimulus package that includes liquidity supply policies for financial institutions as a 'package.'

Han Ji-young and Lee Seong-hoon, researchers at Kiwoom Securities, said, "China-related cyclical stocks have been neglected sectors in the domestic stock market for some time, so the key point to watch in today's market will be whether the expectation of a rebound in the Chinese economy following the PBOC's 50bp cut will provide an opportunity to fill the supply-demand gap for these sectors."