Hong Kong stocks end flat as investors await market-stabilising measures at China’s ‘two sessions’

China’s annual legislative session that sets budgets and outlines Beijing’s plans for the economy, will kick off on Tuesday, amid sluggish growth and falling stock markets

Focus remains on whether the nascent rebound in stocks will be sustained and as to how the government plans to tackle the property market’s woes

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Screens showing the index and stock prices outside Hong Kong Exchange Square (HKEX) in Central. 15FEB24 SCMP / Sun Yeung

Published: 11:10am, 4 Mar 2024Updated: 5:05pm, 4 Mar 2024

Hong Kong stocks ended flat on the eve of China’s annual legislative sessions where it is widely expected that steps to stabilise markets and shore up the world’s second largest economy, will be unveiled. Local developers jumped after weekend home sales picked up.

The Hang Seng Index added less than 0.1 per cent to 16,595.97 at the closing of Monday trading. The Tech Index lost 0.4 per cent while the Shanghai Composite Index added 0.4 per cent.

Food delivery platform Meituan gained 3.5 per cent to HK$91.50 and gaming giant NetEase jumped 1.6 per cent to HK$175.60. Sun Hung Kai Properties climbed 1.7 per cent to HK$80.80 and CK Assets jumped 3.1 per cent to HK$36.75 amid signs homebuyers are returning to the market. Drug maker Wuxi Biologics surged 11.7 per cent to HK$21 and Wuxi Apptech jumped 12.5 per cent to HK$56.55 as concerns over US sanctions eased.

The National People’s Congress (NPC), the country’s annual legislative session that sets budgets and outlines the leadership’s plans for the economy, will kick off on Tuesday in Beijing. Traders are now waiting clues as to whether the recent market rebound will be sustained and how the government plans to tackle the property market’s woes. There are wide expectations of financing and fiscal reforms as well.

Policymakers are likely to set a growth target of “around 5 per cent” for the economy, an official on-budget deficit of 3 per cent, and approve the issue of 1 trillion yuan (US$139 billion) Central Government Special Bonds to boost the economy, according to Goldman Sachs.