Hong Kong stocks log best winning run in a month on China stimulus bets as Beijing signals growth concerns

China is expected to deliver more fiscal stimulus, state-run media reports, as Beijing calls for wider economic reopening, trade

Hang Seng benchmark advances for a third day, the longest streak in a month; EV makers BYD and Xpeng get ‘buy’ rating from Goldman Sachs

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President Xi Jinping calls for a wider reopening of the economy, signalling Beijing’s concerns about its faltering growth. Photo: Reuters

Published: 10:42am, 12 Jul 2023Updated: 4:43pm, 12 Jul 2023

Hong Kong stocks rose for a third day on speculation China will ramp up fiscal stimulus while the government called for a wider economic reopening, signalling heightened concern about the nation’s faltering recovery.

The Hang Seng Index advanced 1.1 per cent to 18,860.95 at the close of Wednesday trading, notching its longest winning stretch in a month. The Tech Index jumped 2 per cent while the Shanghai Composite Index declined 0.8 per cent.

Alibaba Group Holding climbed 1.2 per cent to HK$89.85, while Tencent added 1.9 per cent to HK$340 and Meituan advanced 4.3 per cent to HK$127.30. JD.com strengthened 1.5 per cent to HK$141.60, and online travel operator Trip.com gained 2.7 per cent to HK$285 and casino operator Galaxy gained 1.1 per cent to HK$52.75.

Carmakers BYD fell 1.1 per cent to HK$260.80, following a jump as much as 1.4 per cent, and Xpeng surged 2.5 per cent to HK$59.60 after Goldman Sachs initiated coverage on both EV makers with a buy rating on their US-listed shares, citing strong overseas sales. Peer Li Auto added 1.6 per cent to HK$145.70.

Beijing is expected to roll out more supportive policies to boost the economy, the state-run China Securities Journal reported, adding that there is a chance it will ease fiscal strain with special bond sales to help local governments as revenue from land sales dries up. Beijing last week eased a liquidity crunch faced by weak property developers by asking lenders to extend their loan maturity.