Cici Cao and agencies
Hong Kong and Chinese stocks rallied yesterday amid news that the mainland's service activity expanded at its fastest pace since July.
In Hong Kong, the Hang Seng Index closed at 21,006 points, rebounding 439 points or 2.14 percent with a main board turnover of HK$169.91 billion.
The China Enterprises Index rose 188 points, or 2.56 percent, to 7,556, while the Technology Index climbed 161 points, or 3.56 percent, to 4,693 points.
In China, the Shanghai Composite Index advanced by 2.3 percent to 3,386 points, a new high for about one month
The rallies came amid news that China's Caixin services purchasing managers' index rose to 52 in October from 50.3 in September, and at the fastest pace since July.
It is a sign consumer demand may be on the mend after Beijing moved to shore up growth with a barrage of stimulus measures.
However, the Wall Street Journal reported that China will not roll out big stimuli - at least not this year - to boost the economy as the meeting of the Standing Committee of National People's Congress is ongoing.
The key Chinese legislative session was postponed until this week, starting one day before the US election kicked off, but has raised hopes for a big stimulus package as analysts believe President Xi Jinping had been waiting for US election results before outlining the stimulus plan adjustment. People involved in the legislative discussion said the delay was due to scheduling issues involving some participants, the journal reported.
The people said no big bonanza will appear as the key parts of the stimulus package for the remainder of this year have been set, with the plan waiting for the legislative meeting's formal approval.
In other news, the onshore yuan closed at 7.1095 per US dollar yesterday, dropping 121 basis points or 0.17 percent lower, representing volatility before the announcement of US election results.
Shares of Apple suppliers rose after Apple reportedly proposed a US$10 million (HK$78 million) investment to lift a ban that prevents the sale of the iPhone 16 in Indonesia.
Cowell E Holdings (1415) surged 13.8 percent and BYD Electronic (0285) gained 6 percent, while Sunny Optical Technology (2382) rose over 14 percent, the best performer among blue chips.
UBS expects a notable recovery in A-shares market earnings in the first half of 2025 as the mainland's easing policies beginning at the end of September have improved expectations of market participants as well as the real economy. International Capital Corp (3908) said more structural opportunities will appear in A-shares in 2025 as it expects investors to have a better appetite for risk compared to this year, with three main aspects being the focus: growth, external demand resilience and new types of dividend.
The HSI rose 439 points.
SING TAO
