Media365
Hong Kong stocks rose to a two-week high after China said that it would boost fiscal spending to bolster domestic demand while a bullish mood on global equities lifted sentiment.
The Hang Seng Index gained 0.5 per cent to 25,947.35 as of 10.07am local time, heading for the highest close since December 12. The Hang Seng Tech Index advanced 1.6 per cent.
On the mainland, the CSI 300 Index slid 0.1 per cent and the Shanghai Composite Index added 0.3 per cent.
Chinese electric-vehicle maker BYD rallied 4.8 per cent to HK$98.05, and peer Li Auto gained 3.2 per cent to HK$67.20. Alibaba Group Holding added 0.9 per cent to HK$147.30, while Tencent Holdings rose 0.6 per cent to HK$606.50. On the downside, Xiaomi fell 0.9 per cent to HK$38.88 after a co-founder said he planned to cut his stake in the smartphone maker.
China will expand government spending to spur consumer demand and shore up investment in public services to strengthen the economy next year, the Ministry of Finance said on Sunday in a statement after a two-day national fiscal work conference. Topping the list of tasks were building a robust domestic market through “vigorously boosting consumption” and “actively expanding effective investment,” it said.
Sentiment was also underpinned by a so-called Santa Claus rally, which saw global and US equities trading near record highs. The term refers to a pattern where stocks rise on the last five trading days of the year and the first two days of the new one, often setting the tone for equity performance in the new year.
