Hong Kong Stocks Rally as Investors Anticipate Fiscal Stimulus from Beijing

Hong Kong Stocks Experience a Rally

Hong Kong stocks snapped a two-day losing streak, propelled by investor optimism surrounding anticipated fiscal stimulus measures from Beijing. The Hang Seng Index rose 0.2% to 20,357 as of 10:03 am local time, while the Hang Seng Tech Index saw a modest decline of 0.3%. Tensions persisted across mainland China's indices, with the CSI 300 Index climbing 0.3% and the Shanghai Composite Index retracting by 0.3%.

Chinese Developers Lead Market Gains

Investor confidence was notably buoyed by expectations of support measures for Chinese developers, especially ahead of a housing ministry conference scheduled for Thursday. Longfor Group Holdings surged 11% to HK$14.24, while China Overseas Land and Development increased nearly 7% to HK$15.90, and China Resources Land jumped 6.3% to HK$27.80. Wall Street firms, including Morgan Stanley and Goldman Sachs, are anticipating comprehensive details from the finance ministry after legislative discussions later this month.

Upcoming Economic Policies from Hong Kong Leadership

Investors are also monitoring the upcoming policy address from Hong Kong's Chief Executive John Lee Ka-chiu, anticipated to cover economic diversification strategies and support for local industries such as fashion. Meanwhile, market activity saw two new listings: the data service provider Qiniu plummeted by 46% from its offering price to HK$1.46, while Zhonghang Shangda Superalloys surged 13 times to 99.50 yuan in Shenzhen.

Regional Market Trends

• Japan’s Nikkei 225 slipped 1.8%
• South Korea’s Kospi retreated 0.8%
• Australia’s S&P/ASX 200 fell 0.2%