Hang Seng Index Jumps to 3-Year High Amid Policy Support Promises and Positive Economic Data

Li Chen
18 Mar, 2025
Hong Kong

Stocks in China and Hong Kong extended gains for the second session in a row this week, following the possible summit between the leaders of the world's two largest economies. 

The Hang Seng index advanced more than 2% but the market enthusiasm was more subdued on mainland markets. 

Benchmark indexes in Hong Kong closed at a three-year high on the hopes that a potential meeting between leaders of China and the U.S. could ease trade tensions. 

Earlier this weekend, China's leading policy makers reiterated their commitment to support consumer spending, stock market, and property market. 

The central committee, the State Council, and the national cabinet reiterated their commitment in increasing income by boosting employment and raising minimum wage. 

Premier Li Qiang said that China will raise its fiscal deficit target to a record high of 4% of  gross domestic product for the current year from 3% in the previous year. 

On the economic front, positive data also supported market mood in Monday's trading. 

For the two-month period, retail sales increase accelerated to 4% annual rate from 3.7% in December, the National Bureau of Statistics reported earlier in the week. 

China's industrial output was 5.9% from a year ago for the period, compared to 6.2% in December, and fixed-asset investment expanded to an annual pace of 4.1%.

In overnight trading in New York, listed Chinese companies soared as investors speculated about easing of tensions. 

 

China Indexes and Stocks 

The Hang Seng index advanced 2.5% to 24,740.57, and the CSI 300 index gained 0.3% to 4,007.72.

Baidu Inc. jumped 12% to $103.30, Alibaba Group Holding advanced 5.8% to HK $143.40, and Tencent Holdings gained 3.3% to HK $541.0.

BYD increased 4% to HK $401.40, Li Auto gained 6.8% to HK $112.20, and Xpeng Inc added 1.4% to HK $95.10.