Hong Kong Stock Market Shows Growth Ahead of US Fed Meeting
- Asian equity markets were mixed on light news before the US Fed's Jackson Hole meetings.
- Hong Kong, Thailand, and Malaysia outperformed, while Japan and South Korea underperformed.
- The US dollar fell against Asian currencies amid anticipation of the US Fed meeting.
The US-China Financial Working Group convened for its fifth meeting last week in Shanghai, following Treasury Secretary Janet Yellen's visit to Beijing in September. In Hong Kong, the stock market exhibited mixed results, with major players like Tencent remaining flat despite a new game release. Notable gains were seen in Alibaba (+1.69%), Xiaomi (+1.73%), Meituan (+0.93%), and JD.com (+3.88%). The short video platform Bilibili also rose by +2.17% ahead of its earnings announcement. Electric vehicle stocks experienced upward momentum, with Li Auto leading the charge at +5.29%, followed by Xpeng (+3.76%) and BYD (+0.45%). The real estate sector benefited from news regarding the removal of minimum price levels in certain markets. Appliance manufacturer Midea Group reported a significant increase in operating revenue, up +10.3% year-over-year in Q2, alongside a net profit rise of +14.11%. The Hang Seng and Hang Seng Tech indexes closed up +0.80% and +1.68%, respectively, despite a decline in trading volume. Overall, 302 stocks advanced while 173 declined, with the top-performing sectors being Industrials (+1.9%), Materials (+1.87%), and Consumer Discretionary (+1.56%). Conversely, media, food & beverage, and healthcare equipment sectors lagged. Southbound Stock Connect volumes were moderate, with Mainland investors selling approximately -$793 million in Hong Kong-listed stocks. The Chinese yuan and Asia Dollar Index gained against the US dollar, while the yield on the 10-Year China Development Bank Bond slightly decreased to 2.24%.