Hong Kong stocks end flat as traders await policy signals from China conference

The Hang Seng Index edged down less than 0.1 per cent to 25,530.51 as of the close of trading, after rising as much as 1 per cent earlier. The Hang Seng Tech Index fell 0.8 per cent. On the mainland, the CSI 300 Index dropped 0.9 per cent and the Shanghai Composite Index lost 0.7 per cent.

Chinese home-grown chipmaker Semiconductor Manufacturing International Corp slumped 2.3 per cent to HK$67.15, while e-commerce giant Alibaba Group Holding retreated 1.7 per cent to HK$150.60. Electric-vehicle maker Li Auto declined 1.7 per cent to HK$65.65, and peer BYD dropped 0.4 per cent to HK$97.35.

Lender HSBC Holdings surged 2.1 per cent to HK$114, while food-delivery service provider Meituan added 1.5 per cent to HK$101.50 and pharmaceutical firm WuXi AppTec advanced 0.7 per cent to HK$105. Blind-box toymaker Pop Mart International advanced 1.6 per cent to HK$193.40 after announcing the appointment of Andrew Wu, group president of LVMH China, as its new non-executive director.

Overnight in the US, Nasdaq added 0.3 per cent and the S&P 500 rose 0.7 per cent. The Fed’s quarter-point cut, together with its plan to resume Treasury bill purchases to replenish bank reserves, helped stabilise market sentiment while traders dialled back expectations for additional easing.

Before the meeting, markets were worried that policymakers might even raise rates again, but “Powell’s remark that a hike was ‘not the base case’ removed that risk for now”, said Ray Sharma-Ong, deputy global head of multi-asset bespoke solutions, at Aberdeen Investments.