FX.co ★ Hang Seng Ends Higher After Budget Surplus Signal

The Hang Seng Index climbed 175 points, or 0.7%, to close at 26,766 on Wednesday, rebounding from the previous session’s weakness. Market sentiment improved after the 2026/27 budget projected an earlier-than-expected return to an operating surplus, following three consecutive years of deficits. Financial Secretary Paul Chan Mo also announced measures aimed at strengthening Hong Kong’s role as a global financial hub and promoting innovation and technology development.

Separately, the city’s fourth-quarter GDP growth was confirmed at 3.8%, the fastest pace in two years, lifting full-year growth to 3.5% from 2.6% in 2024. Further gains in mainland equities added to the positive tone, as the Trump administration advanced plans for a global metals trading zone, boosting rare earth and metal-related shares.

Financials led the rally, and consumer stocks also edged higher, although weakness in property and technology names limited overall gains. Haidilao surged about 6% on strong holiday sales, while KE Holdings (5.7%), Orient Overseas (1.9%), China Hongqiao Group (1.6%), and Meituan (1.5%) also recorded notable advances.