Hong Kong stocks waver as investors eye China’s Politburo meeting

A rally that drove up Hong Kong stocks to a three-year high took a breather on Tuesday, as investors geared up for a high-level government meeting in China that will set the tone for economic policies in the second half.

The Hang Seng Index declined from its highest close since November 19, 2021, sliding 0.1 per cent to 24,985.23 as of 11am local time. The Hang Seng Tech Index retreated 0.2 per cent.

On the mainland, the CSI 300 Index and the Shanghai Composite Index both slipped 0.1 per cent.

New Oriental Education and Technology Group and electric-vehicle maker Li Auto led the decline in the broader market. On the mainland, infrastructure construction and building-material makers jumped after China unveiled a plan to build a massive hydropower dam in Tibet.

Investors are waiting for fresh catalysts that can extend the run-up on Hong Kong stocks. Eyes will be on a Politburo meeting later this month convened by President Xi Jinping, which will offer more insights into how the government will steer the world’s second-largest economy amid tariff strife and the struggling property market.

Expectations are swirling that policymakers at the conference will reiterate the case for cutting unneeded capacity in emerging industries including solar panels, electric vehicles and lithium batteries.