Hong Kong stocks trim weekly loss with Beijing support coming ‘very soon’ for private-sector businesses

The benchmark narrowed its loss for the week to 1.3 per cent as traders turned more optimistic about China stimulus measures

China will release detailed measures to boost the private sector ‘very soon’, officials at the top economic planning agency said on Thursday

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People crossing a busy street in Central, Hong Kong with an electronic board showing Hang Seng Index in February 2023. Photo: Li Jiaxing

Published: 10:29am, 21 Jul 2023Updated: 4:45pm, 21 Jul 2023

Hong Kong stocks jumped, snapping a three-day losing streak, as traders turned more optimistic about Beijing’s pledge to support the private sector.

The Hang Seng Index rose 0.8 per cent to 19,075.26 at the close of Friday trading, helping narrow the loss this week to 1.3 per cent. The Tech Index added 1 per cent, while the Shanghai Composite Index declined less than 0.1 per cent.

Alibaba Group gained 2 per cent to HK$91.30, Meituan rose 1.2 per cent to HK$128.20, and Tencent added 0.1 per cent to HK$333. JD.com climbed 1.6 per cent to HK$145.20, while HSBC strengthened 0.8 per cent to HK$64.30. Alibaba Health surged 2 per cent to HK$5.05 while sportswear maker Anta Sports jumped 1.6 per cent to HK$84.20.

China will release detailed measures to boost development and investment in the private sector “very soon”, officials at the top economic planning agency said in a media briefing on Thursday. The government earlier this week unveiled a list of policy solutions and promises political backing for private firms.

This could give the Hang Seng Index members a much-needed boost. The benchmark has lost 3.6 per cent this year, trailing major gauges in Asia-Pacific markets, as investors fret over China’s sluggish economic data last quarter and Beijing’s measured policy response to overcome the weakness.

“We are clearly in a policy easing cycle even though massive stimulus seems unlikely in the near term,” Goldman Sachs economists including Hui Shan said in a note on Friday. Further modest monetary policy easing should help support sequential growth in second half, they said.