20.11.202502:10:55UTC+00Hong Kong Shares Rise on PBoC Move, Nvidia Lift

On Thursday morning, Hong Kong's stock market experienced a modest rise, climbing 79 points or 0.3% to reach 25,907. This uptick marked the end of a four-day decline, influenced by a regional rally stemming from Nvidia's robust earnings that helped alleviate concerns over AI valuations. Additionally, market sentiment received a boost from the People's Bank of China's decision to maintain key lending rates at historically low levels for a sixth consecutive meeting, underscoring its supportive monetary stance. Gains were predominantly led by the financial and property sectors, bolstered by a strong market response to China's €4 billion euro-denominated bond issuance, which reflected solid investor confidence.

However, the potential for further market gains was tempered as investors awaited Hong Kong's October inflation figures, which were expected to be released later today, following a period of stable readings. Meanwhile, reports indicated that Beijing might suspend imports of Japanese seafood, a move that escalates tensions in response to Japanese Prime Minister Sanae Takaichi's suggestion that Tokyo could consider a military response if China were to attack Taiwan.

In the corporate sector, Lenovo saw a 3% increase in its stock, attributed to strong third-quarter revenue gains amid the ongoing AI boom. Other significant performers included China Hongqiao Group, which rose 3.1%, Kuaishou Technology with a 2.7% increase, and Semiconductor Manufacturing International Corporation (SMIC) which gained 1.9%.