Hong Kong stocks waver as investors eye China’s Politburo meeting

SCMP | July 21, 2025, 10:19 p.m. | Original
Hong Kong stocks fluctuated between gains and losses on Tuesday, as investors geared up for a high-level government meeting in China that will set the tone for economic policies in the second half.

The Hang Seng Index rose 0.3 per cent to 25,057.11 at the noon break after a loss of as much as 0.4 per cent. The Hang Seng Tech Index added 0.1 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index gained at least 0.3 per cent.

Gold producer Zijin Mining Group and bottled water maker Nongfu Spring advanced, while humanoid robot manufacturer UBTech Robotics tumbled on a share-placement plan . On the mainland, infrastructure construction and building-material makers surged on the prospect that China’s plan to build a massive hydropower dam in Tibet would boost demand.

With the Hang Seng Index notching a 25 per cent gain this year to trade at a three-year high, investors are waiting for fresh catalysts that can further power the run-up. Eyes will be on a Politburo meeting later this month convened by President Xi Jinping, which will offer more insights into how the government will steer the world’s second-largest economy to contend with tariff strife and the struggling property market.

Expectations are swirling that policymakers at the conference will reiterate the case for cutting unneeded capacity in emerging industries including solar panels, electric vehicles and lithium batteries to reverse a lingering decline in producer prices.

“Attention will be shifted to domestic policies in the short term,” said Yan Zhaojun, an analyst at Zhongtai Securities. “Sidelining sentiment is expected to limit the upside room for the index, with investors waiting for more clarity on policies.”

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