Hong Kong Stocks Surge on Rate Cut Hopes

Hong Kong stocks rose in a holiday-thinned trade, driven by local property giants and a strong debut by Midea Group, amid hopes of a significant interest rate cut by the U.S. Federal Reserve. The Hang Seng Index and Chinese H-shares both increased by 1.44%.

Hong Kong stocks experienced a notable rise in a holiday-thinned trade on Tuesday, buoyed by local property giants and the upbeat listing of Midea Group. This surge is attributed to optimistic expectations of a significant interest rate cut by the U.S. Federal Reserve.

At the midday break, Chinese H-shares listed in Hong Kong climbed 1.44% to 6,177.86, while the Hang Seng Index also rose 1.44% at 17,672.91. Midea Group, in its trading debut, jumped 8% after raising nearly $4 billion in the city's largest share offering in almost four years.

Hong Kong property firms such as Wharf Real Estate Investment Company, CK Asset, and New World Development advanced significantly, as investors anticipate these firms to benefit the most from the anticipated rate cut. Meanwhile, the Hang Seng Tech Index saw a 1.24% increase. Li Auto Inc emerged as the top gainer among H-shares, while Haier Smart Home Co Ltd was the biggest loser. Mainland stock markets will resume trading on Wednesday after the mid-autumn festival break.

(With inputs from agencies.)