Hong Kong Stocks Rebound, Supported by Signals of Beijing's Fiscal Support
Hong Kong stocks rallied sharply in early trading on Thursday, with the main index surging around 433 points (+1.7%) to 25,679. This rebound snapped a three-day losing streak, after bargain hunters emerged after the market briefly hit an 11-week low. The recovery occurred amid improving sentiment regarding China's policy outlook, despite persistently high global volatility.
Confident investors were buoyed by Chinese Premier Li Qiang's statement reaffirming his commitment to maintaining growth momentum after China meets its 2025 growth target. Although authorities set a slightly lower 2026 target of 4.5%–5%, the market assessed the key messages as remaining pro-growth. Fiscal support was also maintained, with the local government authorizing the issuance of CNY 4.4 trillion in special-purpose bonds and CNY 1.3 trillion in ultra-long-term bonds, equivalent to last year's quota—signaling continued stimulus.
The gains were broad-based, boosting the property, financial, and technology sectors. However, the potential for further gains was tempered by a sharp decline in US stock futures, which prompted caution as Middle East tensions persist. Key market concerns are the conflict's impact on energy and logistics and the risk of inflation, which could alter global interest rate expectations and pressure risk assets.
Data-wise, Hong Kong retail sales growth slowed to 3.4% in January, a five-month low, from 5.1% previously—indicating that domestic consumption is not yet fully solid. Among the leading stocks, AIA Group rose around 4.4%, followed by Minimax Group (+4.0%), Innovent Biologics (+3.9%), and XPeng (+3.5%), reflecting a return to even buying interest across key sectors. (asd)
Source: Newsmaker.id
