Hong Kong Market climbs on US rate-cut bets, China housing policy support

Hong Kong share market finished session higher on Thursday, 16 May 2024, as risk appetite buying boosted by renewed hopes for U.S. rate cuts following a smaller-than-expected rise in consumer inflation.

Meanwhile, realty stocks got further boost on supportive measures launched by local Chinese governments to shore up the property market. In the latest effort to stem the downturn and reduce inventories, the city of Hangzhou said that it would buy existing homes and rent them out as affordable housing and Hefei would give homebuyers subsidies equivalent to 2% of the values of purchases homes.

At closing bell, the benchmark Hang Seng Index surged 302.82 points, or 1.59%, to 19,376.53, heading for its highest close since 7 August 2023. The Hang Seng China Enterprises Index added 129.97 points, or 1.93%, to 6,871.38.

Among bluechip stocks, Meituan gained 3.1% to HK$125.70 and JD.com added 2.4% to HK$132.20, while Baidu slipped 0.3% to HK$108.90. Tencent Holdings jumped 4.2% to HK$397.80 after the company first-quarter profit surged 62%

Shares of property developers climbed up as China ramped up policy support for its battered property sector. Longfor Group Holdings soared 13% to HK$14.08 and peer China Overseas Land and Development rose 5.6% to HK$15.96.

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