Most Hong Kong stocks rise as Beijing raises stimulus policy hopes; Wuxi Biologics tumbles most in seven months
- Some 47 out of the 73 members on the Hang Seng Index closed higher after Premier Li Keqiang pledged to boost consumption and investment
- A central bank credit report helped fuel buying sentiment as aggregate finance surpassed expectations, signalling demand for loans is on the mend
The Hang Seng Index dropped 0.2 per cent to 19,326.86 at the close on Tuesday, after climbing as much as 0.7 per cent during the day. The Hang Seng Tech Index lost 0.2 per cent, while the Shanghai Composite Index edged up 0.1 per cent.
Forty-seven of the Hang Seng Index’s 73 constituents closed higher. Pork processor WH Group surged 4.2 per cent to HK$5.42, and computer maker Lenovo Group rallied 3.9 per cent to HK$6.34. Alibaba Group Holding added 1.6 per cent to HK$91.20, and HSBC climbed 1.7 per cent to HK$48.85.
Contributing to the loss on the broader market, Wuxi Biologics tumbled 20 per cent to HK$53.40 after the Biden administration endorsed an executive order to bolster domestic biomanufacturing and reduce US reliance on China for new-drug production. The stock registered its biggest decline since February. Its affiliate Wuxi Apptech slumped 17 per cent to HK$68.75.
Premier Li Keqiang pledged to boost consumption as a major driver for reviving growth and to further increase investment to bolster demand and shore up confidence, according to a report published on Monday by the official Xinhua News Agency.
Li’s comments came amid disappointing data on tourism and consumption during the Mid-Autumn Festival, which was dogged by pandemic outbreaks. Tourism revenue dropped 23 per cent from a year earlier to 28.7 billion yuan (US$4.1 billion), while the number of trips slid 17 per cent to 73.4 million, according to the government data.