Hong Kong Shares Rise Modestly After PBoC Move

Equities in Hong Kong rose 96 points or 0.4% to 24,9 on Monday morning deals, extending gains from the previous session as traders reacted to the PBoC’s decision to keep its one-year and five-year loan prime rates at record lows, in line with expectations. The Hang Seng index reached its highest level since early 2022, lifted by broad-based sector gains and a modest uptick in U.S. futures amid optimism over global trade. U.S. Commerce Secretary Howard Lutnick expressed confidence on Sunday that a deal with the EU could be reached before the August 1 deadline, though talks may continue beyond that date with tariffs taking effect thereafter. Locally, business sentiment in Hong Kong improved for a second consecutive quarter in Q3 2025. However, further gains were capped by investor caution ahead of June inflation data in the city due later today. Among the top performers were Meituan (4.2%), Nongfu Spring (3.3%), China Hongqiao Group (3.0%), and Lenovo Group (2.0%).