Hong Kong stocks recover as focus shifts to China’s third plenum for market reforms
- Tech sector under pressure after Bloomberg reported the US may restrict firms that give China access to advanced semiconductor technology
Hong Kong stocks inched up on Thursday, reversing earlier tech-related losses as investors priced in their expectations of supportive policy announcements after China’s third plenum.
The Hang Seng Index added 0.2 per cent to17,778.41 at close of trade. The Hang Seng Tech Index dropped 0.8 per cent, as concerns remained about further US restrictions on chip sales to China. The Shanghai Composite Index added 0.6 per cent.
China Resources residential property unit Mixc Lifestyle rose 3 per cent to HK$25.40, while Budweiser Brewing company added 3.4 per cent to HK$10.30.
Tech stocks clawed back some of the morning’s losses which contributed to the benchmark’s return to positive territory.
“We will likely hear some positive rhetoric coming out of the meeting but whether this is accompanied by concrete actions is another matter,” said Tim Waterer, chief market analyst at KCM Trade. “So, there is some cautious optimism, however Chinese officials have shown restraint when it comes to implementing large-scale policy actions.”
