Hong Kong Stocks Gain Over U.S. Rate Cut Expectations; Hengdeli Becomes Takeover Target

Published on 12/01/2025 at 03:45 am EST
(MT Newswires) -- Hong Kong stocks began the month in green as expectations of a rate cut in the U.S. outweighed concerns over a potential artificial intelligence bubble.
The Hang Seng Index increased by around 174.37 points, or roughly 0.7%, to end at 26,033.26. The Hang Seng China Enterprises Index rose around 42.66 points, or around 0.5%, to 9,172.84.
The U.S. Federal Reserve is expected to trim rates in December, which weakened the U.S. dollar last week but boosted optimism over the Asian markets.
"We expect another Fed cut in December, followed by two more moves in March and June 2026 that take the funds rate to 3-3.25%," said Goldman Sachs chief economist Jan Hatzius in a note, as quoted by Reuters.
The potential U.S. rate cut also overshadowed the contraction in China's factory and non-manufacturing activities.
Official data from China's National Bureau of Statistics showed that the country's manufacturing activity remained in contraction, while a private reading from RatingDog also showed contraction within the manufacturing industry.
In corporate news, Hengdeli became the subject of a voluntary unconditional general cash offer after Empire Charm moved to buy all remaining shares it does not own at HK$0.14 apiece.
Shares of the consumer goods retailer were up 11%.
China New Higher Education's earnings per share for the fiscal year 2025 came in at 0.49 yuan, unchanged from the prior-year period.
Shares of the education company were down 11%.

Sumber : MT Newswires