China and Hong Kong Lacked Direction as Investors Held Out for Policy Outcomes

Li Chen
03 Dec, 2025
Hong Kong

Stocks in China and Hong Kong turned lower ahead of rate decisions from major central banks. 

The Hang Seng Index fell 1%, and the mainland-focused CSI 300 index edged down a fraction as investors looked elsewhere in the absence of market-moving domestic news. 

The U.S. Federal Reserve is set to announce its rate decisions on Dec. 10, and investors are holding out for a rate cut of 25 basis points. Despite the growing speculation about the rate cut, the policy committee may decide to wait until more signs emerge confirming the sustained downturn in inflation.  

The Bank of Japan is set to deliver its rate decisions on Dec. 24, and investors are divided about the rate path outlook. The recent weakness in the Japanese yen may prompt policymakers to lift rates and support the yen. 

The Reserve Bank of India is expected to hold rates steady after its 3-day policy meeting on Friday, following economic growth accelerating to 8.2% in September and inflation hovering near a record low in October. 

Closer to home, investors have low expectations that the annual central economic work conference chaired by top leaders of the country is likely to yield additional stimulus measures. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 1% to 25,842.77, and the mainland-focused CSI 300 index inched lower 0.01% to 4,553.74. 

Alibaba Group Holding declined 2% to HK $153.90, Tencent Holding dropped 1% to HK $610.50, and Baidu Inc. dropped 0.6% to HK $115.0. 

Lemo Services soared more than 60% to HK $62.50 after the company listed its stock on the Hong Kong Stock Exchange. 

The mechanical massage space operator sold 5.55 million shares at a price of HK $40.0 per share and raised gross proceeds of HK $222.2 million. 

Anhui Jinyan Kaolin New Materials increased 11% to HK $7.43, and the company raised gross proceeds of HK $177.39 million in its public offering. 

The commodities company sold 24.3 million shares at a price of HK $7.30 per share, and 21.87 million shares were purchased by foreign investors.