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BYD, Xpeng lead Hong Kong shares higher on record electric vehicle sales as traders seek new incentives

Posted on by L. Dreeye
BYD, Xpeng lead Hong Kong shares higher on record electric vehicle sales as traders seek new incentives

Hong Kong stock rose, led by electric vehicle (EV) makers amid record sales. Investors are awaiting further fresh catalysts from policymakers in Beijing to support economic growth, while traders are betting the Federal Reserve will cut rates this week to extend its easing cycle.

The Hang Seng index rose 0.2% to 20,542.46 as of 9:45 a.m. local time, after falling 0.4% last week. The Hang Seng Tech Index rose 1.1%. Onshore stocks also rose, with the CSI 300 index rising 0.5 percent and the Shanghai Composite index adding 0.1 percent.

Trip.com shares jumped 4.9% to HK$521.50 and Wuxi Biologics rose 2.3% to HK$16.70. China’s biggest electric vehicle makers rallied after record sales last month. Geely shares rose 5.4% to HK$14.58, while BYD shares strengthened 4.4% to HK$289.80. Xpeng rose 6.5% to HK$47.20.

The National People’s Congress, China’s top legislative body, meets from November 4 to 8, and some analysts are eyeing at least 2 trillion yuan ($280 billion) of fiscal stimulus on top of the monetary stimulus package unveiled in late September.

The Federal Reserve’s Open Market Committee will meet on November 6 and 7. Betting traders are betting on a 25-point decline, according to odds compiled by CME Group. Rates for a 50 basis point rate cut fell to 2 percent from about 32 percent a month ago.

Other key Asian markets traded higher. South Korea’s Kospi added 1.2%, while Australia’s S&P/ASX 200 rose 0.4%. Japanese financial markets are closed for the holiday.