The Hang Seng rose by 186 points, or 0.8%, to close at 24,146 on Monday, marking a second consecutive day of gains as most sectors saw an increase. Investors responded positively to China’s announcement of a “special action plan” aimed at boosting domestic consumption.
Hang Seng pares gains at finish
The plan includes measures designed to raise incomes, stabilize markets, encourage births, and support tourism. More detailed information is expected later today, with analysts anticipating additional stimulus in 2025 to counter external pressures such as the potential for new U.S. tariffs.
Among the sectors, financials and consumer stocks led the way, with notable gains, while the property sector rose slightly, and tech stocks experienced a slight dip. However, the early market strength was somewhat tempered after mixed economic data from China, showing a slowdown in industrial output, slightly stronger retail sales, and a jobless rate reaching a two-year high.
Eyes on Fed upcoming meeting
Caution also grew in the market ahead of the U.S. Federal Reserve’s upcoming rate decision, with most analysts expecting the Fed to leave borrowing costs unchanged. Among individual stocks, AIM Vaccine saw a sharp 11% increase, driven by optimism regarding a smaller annual loss. Other strong performers included Pop Mart International, which rose by 7.0%, PICC Property & Casualty, up 4.6%, and Xiaomi Corp., which gained 3.0%. Despite some mixed data and global uncertainties, the overall sentiment remained positive as investors looked to China’s efforts to bolster its domestic economy and awaited further details on potential stimulus measures.
