Speculators Drive Up China Indexes Ahead of Economic Policy Announcements

Li Chen
12 Dec, 2024
Hong Kong

Stock market indexes in China and Hong Kong advanced ahead of announcements at the conclusion of a key economic policy meeting. 

The Hang Seng index gained 1.4%, and the CSI 300 index gained 0.7% as investors raised expectations for additional stimulus measures with a clear timetable for implementation. 

The yield on China's 10-year bonds edged lower for the seventh day in a row and hovered near 1.813%, and the yuan eased to 7.20 against the U.S. dollar. 

The Hang Seng index rebounded about 40% from its low on September 11 over the next three weeks following a raft of economic stimulus measures announced by the People's Bank of China and political leaders. 

However, those measures failed to revive consumer confidence and property market activities, and benchmark indexes trimmed gains by half over the next two months. 

Investors are skeptical that Chinese leaders are serious about implementing broad and structural economic reforms in the imminent future amid rising government debt and lack of demand growth from consumers. 

A statement at the end of a two-day policy meeting later today is likely to show additional measures agreed by top political leaders. 

 

China Stock Movers 

The Hang Seng index increased 1.4% to 20,436.94, and the CSI 300 index advanced 0.7% to 4,018.29. 

China Mengniu Dairy advanced 8.2% to HK $19.02, China Resources Beer Holdings Co. Ltd jumped 7.7% to HK $28.40, and Haidilao Pot jumped 5.4% to HK $17.84. 

BYD gained 2.2% to HK $279.60, Li Auto soared 2.9% to HK $91.15, and Xpeng advanced 1.3% to HK $51.25. 

Alibaba Group Holding gained 2.6% to HK $88.45, Tencent Holdings increased 2.4% to HK $419.80, and Meituan expanded 1.7% to HK $169.80.