Hong Kong stocks rise while investors anticipate fiscal stimulus measures
Li Auto and Geely gain on stronger-than-expected EV sales, while Ping An Insurance drops after quarterly results missed estimates
The Hang Seng Index climbed 0.1 per cent to 20,498.95 at the close, after falling as much as 0.5 per cent. EV maker Li Auto gained after Citigroup cited strong industry sales data, while Ping An Insurance Group slipped after its quarterly results missed analysts’ estimates. The Hang Seng Tech Index gained 0.7 per cent.
Mainland China’s benchmarks also traded higher. The CSI 300 Index advanced 0.6 per cent and the Shanghai Composite Index added 0.5 per cent.
Investors are waiting for Beijing to roll out fiscal stimulus measures to complement monetary easing that has already been implemented in the form of rate cuts and new funding tools for buying stocks. The focus will be on the National People’s Congress (NPC), whose standing committee is expected to convene in coming weeks to endorse increases in government leverage and government bond issuances. The Hang Seng Index has risen about 20 per cent over the past two months, among the best-performing benchmarks globally.
“The next quarter or so will be critical in tracking the follow-through policies from the government, particularly the next NPC meeting, which many now expect to occur in November rather than in October,” said James Wang, a strategist at UBS Group. “Investors generally tend to agree that there are more structural investment opportunities among the Hong Kong-listed names, with the internet sector the top pick.”
Separately, UBS raised its China growth forecast for 2025 to 4.5 per cent from 4 per cent, citing better-than-expected third-quarter economic expansion and Beijing’s monetary, fiscal and property stimulus measures.
