Hong Kong and Mainland China Indexes Trim Weekly Losses Amid Lackluster Trading

Li Chen
13 Sep, 2024
Hong Kong

Stocks in Shanghai and Hong Kong advanced in Friday's trading amid speculation that the central bank is prepared to lower mortgage rates. 

The Hang Seng index advanced 1%, and the mainland-focused CSI 300 index edged higher after property developers jumped. 

Lingering worries about weak economic rebound and weakening consumer confidence outweighed optimism about the possible U.S. rate cuts next week. 

Investors have stayed on the sidelines amid persistent growth worries, a protracted property market slump, 

Market sentiment was boosted after the European Central Bank cut its key lending rate by 25 basis points and held its economic growth and inflation outlook for the current year. 

The move was widely anticipated by investors, and investors are hoping that the U.S. Federal Reserve Bank will follow through with at least a similar rate cut after its policy meeting on September 18. 

 

China Stock Movers 

The Hang Seng index increased 1.1% to 17,435.42, and the mainland-focused CSI 300 index added 0.2% to 3,176.79. 

For the week, the Hang Seng index is down a fraction following the decline of more than 3% in the previous week. 

Tech stocks led the gainers in Hong Kong trading following a rebound in the sector on Wall Street in Thursday's trading. 

Meituan increased 1.7% to HK $124.40, Alibaba Group decreased 0.4% to HK $83.15, Baidu gained 0.8% to HK $82.25, and Tencent Holdings edged higher 0.4% to HK $374.60. 

Xiaomi Corp added 1.4% to HK $19.20, BYD gained 0.5% to HK $240.0, and Li Auto fell 0.7% to HK $73.90. 

Mainland-focused property developers advanced on speculation that the People's Bank of China is likely to lower mortgage rates in the coming weeks. 

Longfor Group advanced 3.6% to HK $8.07, China Resources Land added 1.3% to HK $19.66, and China Vanke increased 1.3% to HK $3.94.