Hong Kong stocks post biggest weekly gain in 2 months ahead of key China meeting

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The central economic work conference is likely to maintain a positive tone for macroeconomic policies next year, Citic Securities says

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All eyes are on a key Chinese policy meeting next week, which could decide the market’s direction. Photo: Reuters

Zhang Shidongin Shanghai

Published: 10:21am, 6 Dec 2024Updated: 4:32pm, 6 Dec 2024

Hong Kong stocks capped the best weekly performance in two months as investors gear up for a key tone-setting Chinese economic policy meeting next week, which they hope will lead to the roll-out of stimulus measures to fight deflation and counter possible new US tariffs.

The Hang Seng Index rose 1.6 per cent to 19,865.85 at the close, taking the gain to 2.3 per cent for the week. That was the benchmark’s best performance for the five-day period since October 4. The Hang Seng Tech Index advanced 2.2 per cent.

China’s CSI 300 Index climbed 1.3 per cent, and the Shanghai Composite Index added 1.1 per cent.

Wuxi AppTec and Wuxi Biologics surged after Citigroup said that US lawmakers were weighing a potential compromise on a bill aimed at preventing Chinese biotech firms from obtaining US government contracts. Property developers including Longfor Group rallied on expectations about more policy support for the industry.

The central economic work conference (CEWC) will take centre stage, with President Xi Jinping and top policymakers expected to convene next week to work out major economic policies for next year amid a deflationary trend and the threat of new tariffs from the US. It is the last window this year to monitor China’s policy signals after the fiscal stimulus measures from a legislative meeting last month failed to impress investors.

The closed-door conference is likely to maintain a positive tone for macroeconomic policies in 2025, and leaders are expected to highlight local-government debt, the property market, consumption and technological innovation as essential priorities, according to Citic Securities, China’s largest listed brokerage.