FX.co ★ Hong Kong Shares Rise to Over 4-Year High on Tech Rally, Fed Bets

Hong Kong stocks experienced an increase of 189 points, marking a 0.7% rise to 26,626 during early trading on Wednesday. This uptick represents a recovery from a stagnant close the previous day, driven by advances in technology and consumer shares that enhanced market sentiment. The benchmark index reached its highest point in over four years, fueled by anticipation of a widely expected Federal Reserve interest rate cut scheduled for later in the day, alongside prospects for further monetary easing within the year. Investors are also looking forward to a conversation between President Trump and President Xi Jinping, set for Friday, following an agreement between Washington and Beijing regarding a framework for placing TikTok under U.S.-controlled ownership. Furthermore, optimism surrounding China's advancements in artificial intelligence, semiconductors, and pharmaceutical innovation also contributed positively to market sentiment, helping to mitigate concerns over the ongoing trade war and U.S. technology restrictions. Meanwhile, Chery Automobile has filed for an initial public offering in Hong Kong, with the aim of raising up to HKD 9.15 billion. The technology index surged approximately 2%, led by increases in SMIC (4.4%), Meituan (4.1%), and Kuaishou Tech (1.9%). Nevertheless, gains were somewhat constrained by data indicating that the city’s unemployment rate remained steady at nearly a three-year high of 3.7% over the three months leading up to August.