Hang Seng Climbs; BYD, Biogene Rally While Xpeng Sinks

According to TradingEconomics, the Hang Seng Index rose 62 points, or 0.2%, to finish at 26,095 on Tuesday, bouncing back from the previous session’s decline as consumer-related shares led gains. The rebound came as investors positioned ahead of China’s annual Central Economic Work Conference and the upcoming December Politburo meeting, with some traders eyeing opportunities in sectors viewed as undervalued.

Locally, sentiment was supported by data showing that Hong Kong retail sales in October recorded their strongest increase since late 2023, marking a fourth consecutive monthly rise, helped by sustained tourist arrivals. However, the rally moderated as mainland Chinese markets slipped, reflecting broader caution before the release of private Composite and Services PMI figures on Wednesday.

On the corporate front, real estate developer China Vanke requested a one-year extension from bondholders, highlighting its continued liquidity challenges and weakening state backing. Meanwhile, Giant Biogene surged 8.2% after unveiling a share buyback initiative, and BYD advanced over 2% as new energy vehicle sales increased 8.7% in October.

Other notable movers included J&T Global Express, up 6.6%, and Swire Properties, up 3.2%, while Xpeng dropped 5.9% following a decline in November delivery volumes.