The Hang Seng Index fell significantly, dropping 426 points or 2.1% to close at 19,971 on Friday. This decline came after a robust trading session the previous day, as various sectors experienced substantial losses. Investors expressed disappointment following the conclusion of China's Central Economic Work Conference, which failed to deliver specific policy details on anticipated fiscal stimulus, despite commitments from top leaders to boost consumption.
Traders are adopting a cautious approach as they brace for important events in the coming week, particularly the U.S. Federal Reserve's interest rate decision. Additionally, key November activity data from China, including figures on industrial output and retail trade, is expected, stirring concerns that the nation's fragile recovery may endure.
Despite Friday's losses, the index managed to gain 0.5% over the week, marking its third consecutive weekly increase, primarily driven by initiatives from major Chinese cities like Shanghai and Beijing, which are rolling out new voucher schemes in anticipation of the holiday season. Notable decliners for the day included Longfor Group (-7.5%), Geely Auto (-5.6%), Li Auto (-4.9%), China Hongqiao Group (-4.2%), and Trip.Com (-3.3%).
Looking ahead, the main stock market index in Hong Kong (HK50) has surged 2,924 points or 17.15% since the start of 2024, based on trading data for contracts for difference (CFD) tracking this benchmark. Analysts anticipate that the Hong Kong Stock Market Index (HK50) will reach 19,344.12 points by the end of this quarter. Over the next year, projections suggest it may trade at 18,633.11 points.