China Indexes Extended Weekly Advance Amid U.S. Rate Cut Hopes

Li Chen
12 Sep, 2025
Hong Kong

Stocks in China and Hong Kong advanced and extended weekly gains as investors held out for a rate cut next week. 

The Hang Seng index soared 1.5% and extended weekly gains to over 4% following a rally in overnight trading in New York. 

The latest market advance was driven by the expectations of at least a 25 basis point rate cut in the U.S. next week after August's inflation data matched market expectations. 

Consumer price inflation accelerated to 2.9% in August from 2.7% in July, and the core rate of inflation held steady at 3.1%, according to the U.S. Bureau of Labor Statistics. 

However, initial jobless claims at the end of the first week in September inched higher by 27,000 to a four-year high of 263,000, and continuing claims were stable at 1.94 million. 

The steady rise in jobless claims confirmed the deteriorating labor market conditions amid tariff-driven headwinds and macroeconomic uncertainty. 

The U.S. Federal Reserve is widely anticipated to lower rates at the end of the two-day policy meeting on September 18, and most market participants are expecting a rate cut of at least 25 basis points. 

The European Central Bank left its key lending rates unchanged for the second consecutive meeting, and policymakers revised the slightly higher GDP growth rate to 1.2% from 0.9% and the inflation estimate to 2.1% from 2.0% in June, respectively. 

 

China Indexes and Stocks 

The Hang Seng Index added 1.5% to 26,495.76, and the mainland-focused CSI 300 index edged up 0.02% to 4,548.85. 

Residential property stocks advanced in the hopes that the HKMA will follow a possible rate cut in the U.S. next week.

China Vanke Co. Ltd. edged up 5.4% to HK$5.90, Longfor Group advanced 4.5% to $11.86, Sun Hung Kai Properties Ltd. increased 1.2% to HK$96.50, and CK Hutchison Holdings Ltd. added 0.6% to HK$52.50.