Hong Kong stocks trim gains on China GDP data while Vanke tumbles

Investors moved on from the headline number to focus on the durability of the recovery amid a lack of more clarity on stimulus policies

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An employee works on a silk production line at a textile factory in Fuyang, in eastern China’s Anhui province on January 16, 2025. Photo: AFP

Published: 10:30am, 17 Jan 2025Updated: 4:45pm, 17 Jan 2025

Hong Kong stocks trimmed the gains spurred by official data showing China’s fourth-quarter growth exceeded expectations, as investors weighed the sustainability of the recovery. A plunge in China Vanke, the nation’s biggest property developer by revenue, also tempered sentiment.

The Hang Seng Index added 0.3 per cent to 19,584.06 at the close, paring a gain of as much as 0.6 per cent. The four-day winning streak was the longest for the benchmark since October 2. For the week, it advanced 2.7 per cent.

The Hang Seng Tech Index gained 1.4 per cent. In China, the CSI 300 Index climbed 0.3 per cent, and the Shanghai Composite Index added 0.2 per cent.

Vanke’s shares tumbled by as much as 9.1 per cent in Hong Kong and 6.3 per cent in Shenzhen amid rumours the company’s CEO had been detained by the police, adding to woes for the developer as investors question its ability to repay its debts.

China’s economy expanded by 5.4 per cent in the fourth quarter year on year, the National Bureau of Statistics said on Friday. That beat the consensus estimate of 5 per cent growth by the economists tracked by Bloomberg. Full-year growth was 5 per cent, meeting the government’s annual target of around 5 per cent.

However, investors moved on from the headline number to focus on the durability of the country’s recovery amid a lack of more clarity on stimulus policies. Unemployment remained elevated at 5.1 per cent at the end of December, the agency said. That was higher than the projection of 5 per cent.