Hong Kong Stocks Rise as China Property Sales Growth Signals Recovery

Hong Kong Stock Market Overview

Hong Kong stocks rallied as property sales in China saw a positive turn for the first time this year, contributing to signs of economic recovery. The Hang Seng Index increased by 0.5% to 20,417.72 amid mounting optimism.

Property Sales and Market Impact

According to China Real Estate Information Corp, home sales by 22 key property developers rose a staggering 66% from September, marking a 2% increase year-on-year. This positive shift is attributed to enhanced sentiment among homebuyers, influenced by the government's decisive actions to support China's property market.

Response from Key Stocks

• China Overseas Land and Investment rose 4% to HK$15.46
• JD.com advanced 2.6% to HK$159.60
• Xiaomi increased 1.9% to HK$27.25

Outlook for Recovery

Analysts, including Raymond Cheng from CGS International Securities, anticipate sustained growth in property sales throughout Q4 and into 2025, thanks to ongoing stimulus measures initiated since September. Recent data indicates that the manufacturing sector has also started to stabilize, ending a five-month contraction period.

Global Market Influence

Despite this positive news in Hong Kong, other Asia-Pacific markets faced declines, influenced by less-than-ideal earnings reports from US tech giants and increasing inflation concerns. Japan's Nikkei 225 fell 2%, while South Korea's Kospi and Australia's S&P/ASX 200 saw declines of 0.2% and 0.9%, respectively.