The Hang Seng Index rose 1.9 per cent to 24,486.49 at the noon break and the Hang Seng Tech Index gained 2.1 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both added 1.1 per cent.
The Hang Seng Index has risen 2.4 per cent this week, approaching a one-week high, as investors seemed to have moved on from tariff news even after US President Donald Trump unveiled levies on a slew of key trading partners. Sentiment also got a lift ahead of a Politburo meeting scheduled for later this month, with recent data showing that China’s entrenched deflation raised expectations for more robust stimulus measures. The S&P 500 closed at a record high on Thursday.
“Most global equity assets have rebounded to their highs of the year and that means investors think the worst of the tariff issue is already behind them,” said Zhang Yusheng, an analyst at Everbright Securities. “China’s domestic policies will remain proactive to deal with the fallouts of the tariffs in extreme scenarios like the first half. There’s room for a ramp-up of policy support.”
China made a promising initial step in tackling the nation’s overcapacity issues by highlighting “anti-involution” in industries including solar, lithium batteries and new-energy vehicles at high-level economic meetings, according to Morgan Stanley. Still, this initiative was in its very early stages and required more clarification in terms of scope and execution, the US bank said in a report on Thursday.
