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Home » Hong Kong stocks rise to 2-week high as Beijing pledges to boost fiscal expenditure
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Hong Kong stocks rise to 2-week high as Beijing pledges to boost fiscal expenditure

adminBy adminDecember 29, 2025No Comments2 Mins Read
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Hong Kong stocks kicked off the last few trading days of the year on a strong note, with the benchmark hovering around a two-week high on expectations that China will do more to shore up domestic demand next year while a bullish mood on global equities supported sentiment.

The Hang Seng Index gained 0.5 per cent to 25,947.35 as of 11.15am local time, heading for the highest close since December 12. The Hang Seng Tech Index advanced 1.6 per cent. On the mainland, the CSI 300 Index slid 0.1 per cent and the Shanghai Composite Index added 0.3 per cent.

The city’s financial market will trade for a half day on Wednesday and will be shut on Thursday for New Year’s Day. The mainland’s markets will be closed on Thursday and Friday.

Chinese electric-vehicle maker BYD rallied 6.1 per cent to HK$99.35 after China’s finance ministry said that it would extend a trade-in programme for consumer goods in 2006. Peer Li Auto gained 3.9 per cent to HK$67.60, and Geely Automobile Holdings advanced 5 per cent to HK$17.78. Alibaba Group Holding added 0.3 per cent to HK$146.50, while Tencent Holdings rose 0.3 per cent to HK$604.50. Xiaomi gained 0.6 per cent to HK$39.40, reversing a loss of as much as 3.3 per cent spurred by a plan by a co-founder to cut his stake in the smartphone and electric-car maker.

Investors have been boosting bets that Beijing will double down on fiscal expansion and monetary easing in 2026 to rejuvenate growth after an economic work conference chaired by President Xi Jinping this month pledged to focus on boosting domestic demand. In the latest sign of stabilising growth and its determination to prop up the property market, Beijing last week further loosened restrictions on home purchases in the capital city.

“Policy support will work its way into the economy to keep growth at a reasonable range next year,” said Zhang Yusheng, an analyst at Everbright Securities in Shanghai. “That will boost the confidence on the market and attract more inflows.”



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