Hong Kong stocks edged higher on Thursday, trimming weekly losses, as a rebound in Chinese residential property sales and a decline in U.S. Treasury yields boosted investor sentiment about the growth prospects of the world's second-largest economy.
The Hang Seng Index rose 1% by midday, paring its weekly decline to 0.4%. Xinyi Solar Holdings led the gains, surging 25.07%, as expectations grew that China will take action to address overcapacity in the photovoltaic industry and the U.S. will cut tariffs on some imported solar products.
Data from financial provider Wind showed that residential presales for 30 key cities in China rose 22% last week from the previous seven-day period, on top of a 58% jump in the prior week. First-tier cities led the nationwide increase, with sales rising 27%.
The decline in U.S. Treasury yields, driven by fading hopes for aggressive interest rate cuts and rising odds of Donald Trump winning the presidential election, also stoked buying interest in Chinese stocks.
Analysts expect China's property market to recover in the fourth quarter of 2024 and the industry's sales to register year-over-year growth for the first time since 2022, thanks to a slew of strong measures announced by policymakers to support the sector since late September.
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