Hong Kong stocks rose for a fourth day in the longest winning streak in three weeks, on optimism Beijing will ease regulatory curbs to shore up growth. Several key reports on the Chinese economy next week are likely to add to signs of slowdown.
The Hang Seng Index added 0.3 per cent to 25,327.97 at the close on Friday, bringing the advance this week to 1.8 per cent. The Hang Seng Tech Index rallied 1.6 per cent, while China’s Shanghai Composite Index added 0.2 per cent.
Chinese developers and tech juggernauts led the city’s stocks higher on the back of mainland media reports that policymakers would soon loosen the funding restrictions on home builders to ease liquidity squeeze. A Reuters report added to the upbeat mood, saying that ride-hailing giant Didi Global may relaunch its app before the new year to mark an end to data-security investigation.
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Meituan and Tencent Holdings climbed at least 1.6 per cent and Longfor Group Holdings advanced 2.5 per cent. China Evergrande Group jumped 9.9 per cent.
“The pressure on a slowdown in the economy is building up, so liquidity loosening is expected,” Essence Securities said in a report. “That will push down the borrowing costs in the fourth quarter, which will underpin the valuation of growth stocks.”
The Chinese government will report October data on retail sales, industrial production and fixed-asset investment on Monday. They probably moderated from September, according to consensus from economists tracked by Bloomberg.
The Communist Party wrapped up its four-day plenum of the decision-making Central Committee on Thursday, lauding achievements under President Xi Jinping, the party’s secretary general. The political gathering is seen as cementing Xi’s grip on power as the party prepares for its national congress in the second half next year.
Alibaba Group Holding, which owns the Post, dropped 0.5 per cent after posting the slowest growth in Singles’ Day sales in history despite raking on a record US$84.5 billion. Hotpot restaurant operator Haidilao International sank 9 per cent on a US$300 million stock placement plan, days after announcing a plan to shut about one-fifth of its hotpot restaurants.
Hongcheng Environmental Technology, a processor of hazardous waste in eastern Shandong province, fell 11 per cent on its first day of trading in Hong Kong.