Hong Kong stocks fluctuated between gains and losses on Thursday as investors awaited signals on additional policy support from Beijing as the end of the 90-day tariff ceasefire with the US nears and after China’s deflation deepened.
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The Hang Seng Index rose 0.1 per cent to 23,914.79 at the noon break, while the Hang Seng Tech Index dropped 0.4 per cent. On the mainland, the CSI 300 Index climbed 0.3 per cent and the Shanghai Composite Index added 0.4 per cent.
Sunny Optical Technology advanced 6 per cent to HK$75.40 and BYD climbed 5.4 per cent to HK$33.90. Ping An Insurance rose 3.2 per cent to HK$51.10 and China Overseas Land and Development gained 2.1 per cent to HK$13.64. On the downside, JD.com slipped 2.1 per cent to HK$122.70 on concerns about stiffer competition in the e-commerce industry. NetEase lost 1.7 per cent to HK$202.40.
Investors were looking ahead to a Politburo meeting later this month for clues on how top leaders might reverse a deflationary trend that has persisted for nearly three years and address excessive supply in some industries battered by “involution”. China and the US could engage in a new round of tariff talks next month after the ceasefire ends in early August.
Nomura Holdings said it expected China’s gross domestic product growth to slow to 4 per cent in the second half of 2025 from around 5 per cent in the first six months, as worsening fundamentals crippled demand on a number of fronts.
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“Beijing will very likely rush to roll out a new round of supportive measures at some point during the second half,” said Lu Ting, chief China economist at the Japanese brokerage, on Wednesday. “Beijing may again be compelled to either significantly ease prior restrictions or step up stimulus to arrest the slowdown.”