Hong Kong Stocks continue their rise following encouraging service data signaling a recovering manufacturing activity driven by a rise in new orders and businesses. All the while, investors are looking ahead to the US presidential election and the Federal Reserve's monetary policy meeting set to take place this week.
Investor's appetite for local equities surged on expectations that Chinese lawmakers will sign off on a stimulus package ranging between 6 trillion yuan and 10 trillion yuan as part of a plan to raise local governments' debt ceiling to swap out their hidden debts.
The Hang Seng Index rose 2.14%, or 439.45 points, to close Tuesday's session at 21,006.97. The Hang Seng China Enterprises Index rose by 2.56%, or 188.97 points, to close at 7,556.62.
Business activity in Hong Kong's private sector returned to expansion in October as incoming new orders resumed growth and purchasing and inventory levels increased together. The S&P Global Hong Kong SAR Purchasing Manager's Index grew to 52.2 in October from a neutral reading of 50 in September, according to data released Tuesday.
China's service economy also expanded at an accelerated rate in October, with the growth in new business partly reflecting export orders' solid rise.
At the same time, Hong Kong's total receipts in the restaurant sector in the third quarter of 2024 decreased by 1.3%, provisionally estimated at $26.7 billion, according to a Monday release by the Census and Statistics Department.
In corporate news, Yidu Tech's (HKG:2158) affiliate Yidu Cloud (Beijing) Technology agreed to construct a basic data platform for Chongqing Medical University's second affiliated hospital for a contract sum of 12.6 million yuan. The company's shares closed over 4% higher on Tuesday.
Wan Kei Group Holdings (HKG:1718) appointed Xu Lin as the chairman of the board, effective Nov. 4. The shares of the company fell nearly 9% on Tuesday's close.
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