Hong Kong stocks reversed earlier losses to finish moderately higher on Wednesday, as sentiment improved on hopes that China will roll out fresh measures to shield the economy from US tariffs.

The Hang Seng Index, which opened 3.1% lower, climbed 0.68%, or 136.81 points, to end at 20,264.49. The Hang Seng China Enterprises Index added 1.41%, or 105.06 points, to 7,535.68.

Investors were in a risk-averse mood during the morning session as US President Donald Trump's 104% tariff on Chinese imports took effect today.

However, the local equities market rebounded in the afternoon session after Reuters reported that China's top leaders are planning to meet to discuss measures to boost the economy and stabilize capital markets.

This comes after leading brokerages in China vowed to help steady the market and a slew of listed firms announced share buyback plans, according to a separate Reuters report.

Just yesterday, state-backed funds in China purchased ETFs to prop up the market, promising to take further measures to support the economy.

In corporate news, pharmaceutical stocks ended lower after Trump said his administration would soon implement "a major tariff on pharmaceuticals" from foreign nations.

Alphamab Oncology (HKG:9966) led the decliners with an over 4% fall, followed by Boan Biotech (HKG:6955) with a more than 3% drop. Luye Pharma (HKG:2186) slid 2.8%, while BeiGene and (HKG:6160) and Genscript Bio (HKG:1548) slipped over 2%. Zai Lab (HKG:9688) retreated 2%.