Hong Kong stocks extended gains to close higher on Wednesday amid an improved 2025 growth forecast for China.
The Hang Seng Index jumped 0.6%, or 146.3 points, to end at 23,827.78. The Hang Seng China Enterprises Index rose 0.8%, or by 71.86 points, to 8,660.94.
Investor sentiment was positive after US investment bank Morgan Stanley upgraded China's economic growth forecast for 2025 to 4.5% from 4.2%, the South China Morning Post reported. The forecast for 2026 was also raised to 4.2% from 4%.
Morgan Stanley expects a 15 to 20 basis point reduction in policy rate by China's central bank by the end of 2025, with the reserve requirement ratio also being slashed by half a percentage point.
In corporate news, battery stocks surged on the back of Contemporary Amperex Technology or CATL's (HKG:3750, SHE:300750) strong trading debut on Tuesday.
A day after its IPO, CATL surged over 10%, while BYD (SHE:002594, HKG:1211) and Rept Battero Energy (HKG:0666) closed 4% and 2% higher, respectively.
In other economic updates, gold firms in Hong Kong soared as gold prices rose nearly 1% on Wednesday to reach their highest point in one week, Reuters reported.
Among others, Zijin Mining Group (SHA:601899, HKG:2899) and Shandong Gold Mining (HKG:1787, SHA:600547) soared 8% and 7%, respectively.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.