Hong Kong stocks rose on Thursday, paring a weekly decline, as rebounding property sales in China fueled optimism about the growth outlook for the world's second-largest economy.
The Hang Seng Index climbed 1% by noon, trimming the weekly loss to 0.4%. Xinyi Solar Holdings led gains on expectations that China will take measures to address overcapacity in the industry and the U.S. will cut tariffs on some imported photovoltaic products. The Hang Seng Tech Index advanced 1.9%.
Residential property presales for 30 key cities in China surged 22% last week from the previous seven-day period. Sales in major cities spearheaded the nationwide increase, jumping 27%. The data signals that homebuyer confidence is improving after Beijing unveiled a slew of measures to prop up the struggling property market since late September.
Falling U.S. Treasury yields, which had risen recently amid diminishing hopes for aggressive interest rate cuts and heightened odds of Donald Trump winning the presidency, also bolstered buying interest in Hong Kong stocks. Analysts expect China's property sales to post year-over-year growth in the fourth quarter and potentially record the first annual increase since 2022 next year.
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