Hong Kong Stocks Rebound On Rate Path Speculation Ahead of China's Fourth Quarter GDP Data

Li Chen
16 Jan, 2025
Hong Kong

Benchmark indexes in China and Hong Kong traded higher, mirroring their peers following a surge on Wall Street in overnight trading in New York. 

The Hang Seng index increased 0.9%, and the mainland-focused CSI 300 index advanced a fraction, reflecting the strength in the U.S. stocks. 

Market indexes in Hong Kong soared in the hopes that the U.S. inflation will continue to slide after December's monthly core rate of inflation declined for the first time in six months. 

The monthly core inflation rate decreased 0.2%, and the annual rate eased to 3.2% from 3.5% in the previous month. 

However, the overall consumer price inflation accelerated for the third month in a row to 2.9% amid a rise in energy prices and the sustained increase in housing costs. 

Despite the elevated inflation, investors focused on the decrease in the monthly inflation rate and bid up stock prices in New York, sparking a rally in Asian markets in Thursday's trading. 

Closer to home, investors are looking forward to the release of fourth quarter GDP growth on Friday. 

China's GDP in the fourth quarter is likely to accelerate to an annual pace of 5.0% from a 4.6% increase in the third quarter, largely driven by a raft of stimulus measures and steps to shore up the faltering property market. 

 

China Stock Movers 

The Hang Seng index increased 0.9% to 19,445.68, and the CSI 300 index advanced 0.02% to 3,796.80. 

China Hongqiao Group Ltd. increased 4.2% to HK $11.90 after the aluminum producer said it repurchased 5.56 million of its own shares at a total price of HK $63.3 million or $8.1 million. 

The company said it plans to cancel repurchased stocks. 

Property developers in Hong Kong advanced on speculation that mortgage rates could head lower if the U.S. Federal Reserve sticks with its rate-cut plans following the release of December's inflation report. 

Wharf Real Estate Company increased 0.9% to HK $18.76, Link Real Estate Investment Trust advanced 2% to HK $31.90, and Henderson Land Development Company fell 0.5% to HK $21.70.