Market to fluctuate ahead of Two Sessions

Staff reporter and Bloomberg

Hong Kong stocks are expected to fluctuate around 4 percent as Beijing's top officials meet to discuss economic priorities this week.

Both Hong Kong stocks and A-shares are expected to tilt towards positive sentiment amid high expectations for policy measures, said Kenny Ng Lai-yin, a securities strategist at Everbright Securities International.

Though Hong Kong-listed stocks have now fallen below the 10-day moving average, Ng said the bullish trend could still be maintained if they could rebound in the short term.

Ng expects the Hang Seng Index, Hong Kong's market benchmark, to trade between 22,200 and 24,000 points, 3.2 percent lower and 4.6 percent higher than last Friday's close of 22,941 points, amid recent volatility.

Ng advised keeping a close eye on consumer, property and Chinese financial stocks as they may benefit from favorable policies.

Investors are also expecting measures to "push forward the AI-related investment and adoption," according to Goldman Sachs economists.

China's central bank and four other authorities vowed last Friday to tackle the financing challenges facing private enterprises, following a rare meeting between President Xi Jinping and the country's prominent entrepreneurs last month.

Known as the Two Sessions, the National People's Congress opens tomorrow and the Chinese People's Political Consultative Conference a day later in Beijing.