Hong Kong stocks rise on China policy stimulus hopes to counter US tariffs

Chinese property developers rally amid expectations of more policy support for the troubled real estate sector

Reading Time:2 minutes

Hong Kong stocks were back in positive territory on Thursday after tumbling in the previous session. Photo: Shutterstock

Published: 10:32am, 17 Apr 2025Updated: 4:44pm, 17 Apr 2025

Hong Kong stocks rebounded on Thursday, nearly erasing the loss spurred by the threat of 245 per cent US tariffs on Chinese imports, amid optimism that Beijing will launch policies to boost domestic demand.

The Hang Seng Index rose 1.6 per cent to 21,395.14 at the close, recouping most of the 1.9 per cent decline a day earlier and eking out a 2.3 per cent gain for the week. The Hang Seng Tech Index gained 1.9 per cent.

Hong Kong’s market is shut for public holidays on Friday and Monday.

On the mainland, the CSI 300 Index slid less than 0.1 per cent, while the Shanghai Composite Index added 0.1 per cent.

Chinese property developer Longfor Group rallied 4.5 per cent to HK$10.64, and peer China Overseas Land and Development advanced 2.9 per cent to HK$14.38. Online game operator NetEase added 4.6 per cent to HK$158.30, and e-commerce giant Alibaba Group Holding tagged on 3.1 per cent to HK$108.70. Gold producer Zijin Mining inched up 0.2 per cent to HK$17.22 after bullion prices rose to a record.

Shares of gold producer Zijin Mining jumped after bullion prices rose to a record. Photo: Edmond So

Investors are optimistic that China will roll out more forceful policies to mitigate the impact of the 145 per cent levy slapped on by the US. Premier Li Qiang hinted that policies to expand domestic demand and bolster consumption were on the way, while pledging more support for the property market and urging exporters to diversify their channels for overseas sales.