Hong Kong stocks edged higher on Wednesday, paring weekly losses, as a rebound in China's property sales and lower U.S. Treasury yields boosted investor sentiment.

The Hang Seng Index rose 1% by midday, trimming the weekly decline to 0.4%. Xinyi Solar Holdings, Geely Automobile, WuXi Biologics, Li Auto, SMIC, Alibaba, and JD.com were among the top gainers on expectations of supportive government policies.

Residential presales for 30 key cities in China rose 22% from the previous week, data from Wind Information showed. First-tier cities led the increase, with sales rising 27% last week, following a 58% week-on-week jump in nationwide sales the prior week.

The decline in U.S. Treasury yields, which had recently been driven up by fading hopes of an aggressive interest-rate cut and rising odds of Donald Trump winning the presidential election, also spurred buying interest in Hong Kong stocks.

Analysts believe that the Chinese government's recent measures to support the property market have improved homebuyers' confidence. They expect industry sales in the fourth quarter to register year-over-year growth, potentially the first time since 2022.