Hong Kong stocks’ gains slow as signs of China slowdown clash with rate-cut hopes
Rebound may carry on after some consolidation, as investors eye Beijing policy support towards the end of the year, analyst says
The Hang Seng Index rose 0.1 per cent to 25,945.93 at the close, giving up most of a 0.8 per cent gain earlier in the day but extending a 2.8 per cent advance for the previous three days. The Hang Seng Tech Index lost 0.4 per cent.
On the mainland, the CSI 300 Index slipped 0.1 per cent and the Shanghai Composite Index added 0.3 per cent.
Plush toymaker Pop Mart International Group rallied 6.8 per cent to HK$218.60 after Beijing unveiled a plan to boost new consumption. Xiaomi advanced 2.5 per cent to HK$41.10 and China Life Insurance added 2.2 per cent to HK$27.32.
Hong Kong stocks have been taking cues from US equities, as optimism about a reduction in interest rates by the Federal Reserve next month fuels a recovery in risk appetite after a brutal sell-off in tech companies and bitcoin. Meanwhile, investors will also pay close attention to China’s economic data for clues on whether growth has gathered momentum. While weak data may dampen sentiment, it will bolster the case for fresh stimulus measures from the government to restore growth into the start of a new year.