The Hang Seng rose by 164 points, or 0.9%, to close at 19,865 on Wednesday, reversing a three-session decline.
Hang Seng rises by 0.9% at close
The rebound was fueled by a significant increase in US futures as investors anticipated a 25bps interest rate cut by the Fed later in the day, along with expectations for further cuts in 2025. The index recovered from its lowest level in over a week, supported by news that China plans to increase fiscal spending in 2025 by raising its budget deficit to 4% of GDP, the highest ever, up from 3% this year.
Eyes on Chinese regulators decisions
Additionally, Chinese regulators urged state-owned enterprises to enhance their market value through strategies like mergers, acquisitions, and stock buybacks. China’s central bank also took a strong stance against bond market "misbehaviors" while overseeing banks' bond investment activities. All sectors posted gains, with tech and consumer stocks leading the way. Key gainers included Li Auto (5.3%), China Resources Gas Group (4.5%), Geely Auto (4.1%), and Semicon Manufacturing (2.0%).
