Hong Kong Shares Rise Slightly After FOMC, HKMA Moves

Hong Kong stocks added 44 points or 0.2% to 26,954 on Thursday morning, advancing for the second session and holding near four-year highs.

Sentiment improved further after the Fed cut rates by 25bps for the first time in nine months and signaled two more reductions this year, citing labor market risks over inflation.

The Hong Kong Monetary Authority followed, lowering borrowing costs to 4.5%, the lowest since November 2022.

Chief Executive Eddie Yue said the move should support property and the wider economy.

Tech stocks led the strength after Beijing reportedly ordered firms to halt Nvidia chip purchases to cut reliance on US hardware and foster domestic alternatives.

Consumer shares also firmed after Chief Executive John Lee pledged to boost investment, tourism, and innovation in his 2025 policy address.

SMIC jumped 5.6% to its highest since 2004, while Baidu surged 11% on AI progress.

Other notable movers included China Longyuan Power (5.0%), Pop Mart (3.4%), and China Tower (2.8%).