Hong Kong stocks rebound as investors await details on policy support from Beijing
Investors look ahead to a Politburo meeting later this month for clues on how top leaders might tackle deflationary trend
The Hang Seng Index rose 0.6 per cent to 24,028.37 at the close and the Hang Seng Tech Index dropped 0.3 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both climbed 0.5 per cent.
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.
“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.”