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Zhang Shidong

Hong Kong stocks rose on Friday, paring the week’s losses as China’s decision to stand pat on a benchmark interest rate offered optimism that a recovery in the world’s second-largest economy would hold up.
The Hang Seng Index climbed 1.3 per cent to 23,530.48 at the close. The Hang Seng Tech Index gained 0.9 per cent. On the mainland, the CSI 300 Index added 0.1 per cent, and the Shanghai Composite Index slipped 0.1 per cent.
Among leading gainers on the benchmark, sportswear maker Li Ning rallied 4.8 per cent to HK$15.72 and Sunny Optical Technology Group advanced 4 per cent to HK$65.15. Alibaba Group Holding rose 1.6 per cent to HK$111.70 and Tencent Holdings gained 1.5 per cent to HK$505.50.
China left the one-year loan prime rate unchanged at 3 per cent this month, and the five-year rate at 3.5 per cent, according to the central bank. Both rates were cut by 10 basis points in May.
The People’s Bank of China has delivered fewer rate reductions than expected this year, stirring expectations that the economy has been riding out headwinds such as tariffs from the US and the property market downturn. Retail sales unexpectedly rose more than estimated last month, and exports avoided a collapse despite the elevated levies from the US.
“Some of the economic data is solid,” said Xu Zhi, an analyst at Central China Securities. “Growth in exports indicates the resilience of the market and the ability of the companies to navigate through complicated situations. The economic recovery is still getting under way, but at a slow pace. Buying will probably be rotating between value and growth stocks.”
Despite the gain on Friday, the Hang Seng Index finished the week 1.5 per cent lower as the military conflict between Iran and Israel raised global inflationary risks by straining oil supply. US President Donald Trump said he would decide in two weeks whether to join Israel in attacking Iran’s nuclear facilities, according to a White House press official. US involvement would escalate tensions in the Middle East and drive up oil prices just as the tariff deadline set by the Trump administration is drawing nearer.
Pop Mart International Group, the maker of toy figures including the wildly popular Labubu, tumbled 3.6 per cent to HK$239.60 after the Communist Party’s People’s Daily called for more oversight of the blind-box market to prevent potential addiction to buying the mystery boxes among children.
The Hang Seng Index may rise to 26,000 in the next 12 months on more policy support for China’s economy, according to Citigroup. The US bank upgraded its rating on consumer stocks based on their relative insulation from tariffs and the likelihood of benefits from government subsidies and stimulus measures like consumption vouchers, while cutting its recommendation on transport firms.
Other major Asian markets were mixed. Japan’s Nikkei 225 and Australia’s S&P/ASX 200 both slipped 0.2 per cent, while South Korea’s Kospi rose 1.5 per cent.


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Stocks pare the week’s losses as central bank’s rate decision hints at sustained recovery in the world’s second-largest economy


Stocks pare the week’s losses as central bank’s rate decision hints at sustained recovery in the world’s second-largest economy.


Hong Kong stocks gain as PBOC’s benchmark-rate choice spurs optimism on economy

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Stocks pare the week’s losses as central bank’s rate decision hints at sustained recovery in the world’s second-largest economy

Stocks pare the week’s losses as central bank’s rate decision hints at sustained recovery in the world’s second-largest economy