Hong Kong stocks reverse gains as China’s market-boosting plan disappoints traders

At least 100 billion yuan of insurance funds will funnelled into A shares as part of a pilot programme within the first six months, regulators say

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Chinese stock indices are displayed outside a brokerage in Beijing. Shares rose in Hong Kong and China on Beijing’s plan to shore up the nation’s stock markets. Photo: AP Photo

Published: 10:25am, 23 Jan 2025Updated: 4:36pm, 23 Jan 2025

Hong Kong stocks fell after China’s action plan to boost the nation’s markets through long-term investments failed to impress investors, while the threat of tariffs from US President Donald Trump also weighed on sentiment.

The Hang Seng Index fell 0.4 per cent to 19,700.56 at the close on Thursday, after rising as much as 1.3 per cent earlier. The Hang Seng Tech Index dropped 1.4 per cent, reversing gains of as much as 1.7 per cent.

On the mainland, the CSI 300 Index was up 0.2 per cent, after advancing as much as 1.8 per cent, the most since January 14. The Shanghai Composite Index rose 0.5 per cent.

Starting this year, 30 per cent of the annual insurance premium earned from new policy sales will be invested in China’s onshore markets, Wu Qing, the chairman of the China Securities Regulatory Commission, said at a press conference in Beijing on Thursday. These investments would increase by 10 per cent every year over the next three years, he added.

CSRC chairman Wu Qing announced plans on Thursday to boost the nation’s stock markets. Photo: Reuters

The measures come as China tries to counter the threat of tariffs from Trump, who said that he was considering a 10 per cent tariff on Chinese exports from February 1.