Hong Kong Stock Market Holds Steady as Investors Anticipate China’s Economic Policy Support

Hong Kong’s stock market was relatively stable on Monday, with investors watching closely for signs of further policy support from China. The Hang Seng Index remained nearly unchanged at 17,622.02 at 10:50 am local time, reflecting a cautious sentiment among traders. The Hang Seng Tech Index saw a slight decrease of 1 percent, while the Shanghai Composite Index dipped by 0.4 percent. This follow-up comes after the Third Plenary Meeting held last week, which indicated strong confidence from Beijing in meeting their development and growth targets by the end of the year.

The excitement in the market stems from the unexpected decision by China’s central bank to cut both the near-term policy rate and the loan prime rate. Many investors are optimistic that this move signals the central government’s intention to introduce additional stimulus measures in the near future. Economic analysts predict that the central bank might reduce the reserve requirement ratio, potentially freeing up around 2 trillion yuan (approximately US$275 billion) to support businesses and the economy. There is also anticipation that the government could increase the deficit target to enable more robust economic activity.

Meanwhile, other major Asian markets reported gains, indicating a more positive sentiment across the region. Japan’s Nikkei 225 climbed by 0.5 percent, South Korea’s Kospi edged upwards by 0.2 percent, and Australia’s S&P/ASX 200 witnessed a boost of 0.6 percent. As further economic policies emerge from various Chinese ministries in the coming weeks, investors remains watchful, hoping for clearer signals that will support their investment strategies.