The Hong Kong Stock Exchange witnessed a surge in activity following the unveiling of the “Action Plan for Boosting Consumption” by China’s Central Committee and State Council. This plan, aimed at addressing various structural issues, included measures to stabilize the stock market, real estate sector, and support technological advancements such as E-Commerce.

As part of the plan, efforts were made to reform the Hukou system and enhance the social safety net to encourage higher consumer spending. Additionally, initiatives to boost employment, improve healthcare services, and promote new consumption patterns were highlighted. The plan emphasized the need to enhance the stock market’s stability and promote the exchange of old consumer goods for new ones.

Mainland China and Hong Kong stock markets initially rallied on the news but saw fluctuations throughout the trading day due to the absence of specific policy details. While the National Development and Reform Commission’s press conference provided a positive outlook, the lack of concrete measures led to some uncertainty in the market.

In the wake of the announcement, Contemporary Amperex (CATL) experienced a decline in stock value, while Baidu recorded gains after launching innovative models and making certain services free for users. Market indices like the Hang Seng Index and Shanghai Composite Index showed positive movements, with Mainland investors showing interest in Hong Kong-listed stocks.

The trading day also saw varying performances across different sectors, with utilities, information technology, and real estate emerging as the top gainers. Consumer durables, apparel, and construction materials sectors performed well, while commercial services and semiconductors faced challenges. Southbound Stock Connect volumes showed moderate activity, with Mainland investors displaying interest in various Hong Kong-listed companies.

In summary, the Hong Kong Stock Exchange’s response to the stabilization plan unveiled by China’s Central Committee reflects the market’s sensitivity to policy developments and the importance of clear, targeted measures to sustain investor confidence and market stability. The ongoing dynamics between Mainland China and Hong Kong stock markets underscore the interconnectedness of regional financial systems and the significance of regulatory initiatives in shaping market performance.