The Hang Seng gained 150 points, or 0.8%, to close at 19,577 on Monday, snapping a six-session losing streak after China urged listed companies to boost share prices through strategies like mergers and acquisitions, employee stock schemes, cash dividends, and buybacks.
Hang Seng pares gains at finish
However, the index pared some of its early gains following a downgrade of Hong Kong stocks by Morgan Stanley, which moved its rating to "underweight" from "market weight." Most sectors advanced, particularly financials, consumer stocks, and tech. Geely Auto surged 4.4% after Jefferies maintained a "buy" rating, citing restructuring efforts to improve efficiency. Some caution remained among traders ahead of China’s key lending rate decision, especially after the PBoC kept rates at record lows last month.
Eyes on the Fed
In the US, some Federal Reserve officials are scheduled to speak this week, with expectations that they will adopt a cautious stance on aggressive rate cuts. Smoore International rose 4.8%, JD Logistics gained 4.7%, and Want Want China added 3.1%. In contrast, Alibaba Group dropped 1% following news of plans to sell dollar and yuan bonds to reduce debt and repurchase shares.
