FX.co ★ Hong Kong Shares Eye Longest Winning Streak Since February

Hong Kong's stock market experienced a rise of 89 points, equivalent to a 0.4% increase, reaching 23,627 in early trading on Friday. This marks a recovery from the previous session's decline, following an agreement between the U.S. and China to keep communication lines open, as discussed in a call between China's Vice Foreign Minister Ma Zhaoxu and the U.S. Deputy Secretary of State Christopher Landau. The market sentiment improved further owing to the People's Bank of China's (PBoC) recent decision to reduce key interest rates, targeting major state-owned banks. This move is anticipated to encourage smaller lending institutions to follow suit, given the pressure of decreasing net interest margins. The rise in the market was widespread, particularly benefiting financial, technology, and consumer stock sectors. For the week, the Hang Seng Index is poised for its sixth consecutive gain—its most extended winning streak since February—having increased by approximately 1.0% to date, buoyed by positive earnings. However, the market's upward momentum was somewhat restricted by concerns regarding U.S. fiscal health, following the House's approval of an expensive tax bill that has created uncertainty in the markets. Notable stocks showing significant gains included Smoore Holdings (4.0%), Innovent Biologics (2.9%), Li Auto (2.0%), and China Unicom (1.3%).