FX.co ★ Hong Kong Equities Edge Up After Recent Declines

Hong Kong stocks experienced a slight uptick of 32 points, or 0.1%, bringing the index to 26,518 during Wednesday morning trading, as the market showed signs of attempting to halt a four-session losing streak. This modest rise was in line with stronger U.S. futures, following Wall Street's significant drop—the steepest since October 10—triggered by renewed tariff threats from President Donald Trump targeting Europe, which heightened concerns over market volatility. The modest gains were primarily driven by the technology and consumer sectors, reflecting the strength observed in mainland markets after the People’s Bank of China decided on Tuesday to maintain its benchmark lending rates for the eighth consecutive month. This decision comes on the heels of Beijing achieving its 5% growth target for 2025. On the corporate front, China Vanke bondholders agreed to a proposal to delay certain yuan repayments by one year, as stated in a filing. Nonetheless, gains were limited due to investor caution leading up to the release of December inflation data and first-quarter business confidence indicators. Early notable performers included Wuxi Biologics, which rose by 2.6%, SMIC with a 2.5% increase, Zijin Mining up by 2.2%, and China Hongqiao Group with a 1.9% rise.