Hong Kong stocks closed higher as some traders positioned for further stimulus to be released at a key policy meeting next week.

The Hang Seng Index (HSI) rose by 1.56%, the Hang Seng Tech Index (HSTECH) climbed by 2.16%.

In terms of sectors, the pharmaceutical outsourcing sector saw significant gains, with Wuxi AppTec surging 9.20% and Wuxi Biologics rising 5.47%. The SaaS sector saw notable gains, with Kingdee International jumping 9.66%. The restaurant sector was strong, with Yum China up 4.55% and Xiabu Xiabu soaring 10.78%.

Trip.com Group gained 6%; JD.com rose 3%; Alibaba rose 2.4%; Li Auto advanced 2.3%; Meituan, Tencent rose 2%.

Investors are betting that Chinese authorities will offer fresh measures to support growth at the Central Economic Work Conference, helping revive a rally that has run out of steam. The nation’s top leaders are likely to map out economic targets and stimulus plans for 2025 during the annual closed-door meeting starting Wednesday, Bloomberg News reported earlier.

“Investors are looking forward to next week’s Central Economic Work Conference and the possibility of further reductions in the reserve requirement ratio by the Chinese central bank this month,” said Kenny Ng, a strategist at China Everbright Securities International.

Expectations are also rising among Wall Street banks that the People’s Bank of China will deliver the biggest interest-rate cuts in a decade next year as policymakers intensify efforts to shore up growth and arrest deflation. Goldman Sachs Group Inc. and Morgan Stanley are among those projecting cuts of 40 basis points to the PBOC’s main policy rate in 2025.

“Local onshore traders are discussing the potential for rate cuts of 40 to 60 basis points in 2025,” said Billy Leung, an investment strategist at Global X ETFs.