On Thursday, the Hang Seng Index gained 175 points, equivalent to a 0.7% increase, closing at 25,936. This recovery followed a significant drop the previous day, buoyed by strengthening U.S. futures in anticipation of Friday’s release of the Personal Consumption Expenditures (PCE) index and the Federal Reserve's final policy meeting of the year, at which a 25 basis points rate cut is widely anticipated. In China, speculation arises that the country's 2026 growth target may remain around 5%, as top officials are set to convene later this month to outline the economic agenda for the upcoming year.
On the corporate side, Country Garden garnered shareholder approval for a USD 13 billion convertible bond issuance, as the heavily indebted developer continues with its debt restructuring efforts. CMOC Hong Kong saw a 1.6% rise, set to be included in the FTSE China A50 Index beginning December 22. Meanwhile, Innoscience surged 4.4% after entering a new strategic cooperation agreement with On Semiconductor. Other significant stock increases included Xiaomi at 4.1%, SMIC at 3.8%, and Meituan at 2.2%. However, these gains were tempered by investor caution in light of Hong Kong’s upcoming November foreign exchange reserve data, especially after October interrupted a three-month consecutive decline.
