Hong Kong stocks rise, fuelled by bets of stability in China property, growing US rate cut hopes
- ‘‘We see China property sector is stabilising’ said analysts at Citigroup in a note which expects sector health to improve and new policy seen accelerating soft landing
- Signs of cooling in the US economy sparked hopes the Federal Reserve will deliver at least one interest rate cut this year
The Hang Seng Index edged up 0.2 per cent to 18,444.11 at close of trade on Tuesday, on the heels of Monday’s 1.8 per cent jump. The Tech Index gained 0.3 per cent, and the Shanghai Composite Index added 0.4 per cent.
Food delivery platform Meituan advanced 4.1 per cent to HK$113.50 ahead of its earnings report later this week, and Tencent added 0.6 per cent to HK$377.40. Hang Lung Property rallied 3.2 per cent to HK$7.53 and Longfor jumped 3.8 per cent to HK$13.04, leading gains among property developers.
“We suggest a neutral to slightly bullish investment approach after recent correction in May,” Citigroup analysts said in an note on Tuesday. The recent top-level policy turnaround and supports for individual firms are stabilising the property sector, which will also benefit China equity, they said.
The Hang Seng Index, which has rebounded as much as 31 per cent from the year’s low struck last month, experienced a two-week pullback as traders took profits after patchy earnings and economic reports. Local shares are still among the cheapest among regional peers, with Hang Seng Index’s price-to- earnings ratio standing at 9.67, according to Bloomberg data.
