FX.co ★ Hang Seng Reverses Early Declines to End Higher

The Hang Seng Index experienced a rise of 106 points, or 0.4%, concluding at 25,541 on Wednesday. This marked a recovery from earlier losses and represented the first positive close in three sessions, as most sectors saw gains. Investor sentiment improved in anticipation of a third consecutive interest rate reduction by the U.S. Federal Reserve later today, along with the release of rate forecasts extending to 2026, as presented in the "dot plot." Additionally, attention turned to guidance expected from China's upcoming Central Economic Work Conference, with forecasts suggesting an emphasis on a more proactive fiscal policy and moderately accommodative monetary support. Fresh data revealed that China's annual inflation reached a 21-month peak in November, even as producer prices fell for the 38th consecutive month. In corporate news, China Vanke, a troubled real estate developer, convened a bondholder meeting to vote on delaying repayment of CNY 2 billion. Meanwhile, Shanghai Bao Pharmaceuticals surged 133% in its market debut, with other significant performers including Zijin Gold International (up 4.0%), Meituan (up 2.3%), and China Hongqiao (up 2.1%).