Shares of Meituan, the Chinese food delivery and lifestyle services giant, soared 6.76% on Tuesday, buoyed by the optimism surrounding corporate earnings in Hong Kong and the proposed establishment of a stock market stabilization fund.

Hong Kong stocks experienced a second consecutive day of gains, with the Hang Seng Index rising 1.9% and the Hang Seng Tech Index rallying 2.8% by midday. The rally was driven by expectations of improving corporate earnings, fueled by a slew of stimulus measures announced by the Chinese government and a proposal for a 2 trillion yuan ($280.5 billion) stock stabilization fund by a government-backed think tank.

According to the proposal from the Institute of Finance & Banking, affiliated with the Chinese Academy of Social Sciences (CASS), the establishment of a stock market stabilization fund could help steady the market by buying and selling blue-chip stocks and exchange-traded funds (ETFs). This move aims to support the recent surge in stock prices, with blue-chip stocks having gained approximately 24% over the past month.