Hong Kong stocks waver near 4-week low before Fed, HKMA policy actions, eyes on Chinese property debt workouts

Hang Seng Index recovers from a four-week low before Fed, HKMA policy actions later this week

The Chinese yuan continues to weaken in offshore trading even as China’s central bank pledges to support foreign businesses amid capital outflows

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Screens showing the Hang Seng stock index and stock prices outside the Exchange Square in Central, Hong Kong in August 2023. Photo: Reuters

Published: 10:43am, 19 Sep 2023Updated: 5:03pm, 19 Sep 2023

Hong Kong stocks climbed before the Federal Reserve and the city’s monetary authority make their policy moves later this week. Beijing vowed again to support foreign businesses, while property developers continue to dent sentiment.

The Hang Seng Index gained 0.4 per cent to 17,997.17 at the close of Tuesday trading, after earlier falling as much as 0.6 per cent to a four-week low. The Tech Index declined 0.1 per cent while the Shanghai Composite Index was little changed.

Alibaba Group climbed 0.7 per cent to HK$84.80, Tencent Holdings gained 0.1 per cent to HK$312.40 and NetEase gained 1.1 per cent to HK$160.10. Alibaba Health surged 2.8 per cent to HK$4.70 while chip maker SMIC jumped 2.2 per cent to HK$19.30.

Among losers, HSBC dropped 0.1 per cent to HK$60.70, while AIA Group lost 0.2 per cent to HK$65.25 and New World Development weakened 0.8 per cent to HK$15.40.

The Fed is almost certain to keep its target rate unchanged at 5.25 per cent to 5.50 per cent when policymakers meet on Wednesday, pausing for a second time in its tightening since March 2022, according to CME Group, based on Fed fund futures. The Hong Kong Monetary Authority is expected to follow in lockstep.