19.12.202508:29:01UTC+00Hang Seng Ends Higher on ByteDance Deal, Still Posts Weekly Drop

On Friday, the Hang Seng Index rose by 192 points, or 0.75%, closing at 25,690, marking its third consecutive session of gains as all major sectors witnessed advances. Investor sentiment was buoyed by a continued upswing in mainland equities, buoyed by reports of ByteDance reaching an agreement with three major investors to form a joint venture that would manage TikTok's U.S. operations, a strategic move aimed at averting a possible ban. Additionally, the market was supported by optimism regarding new stimulus measures from Beijing anticipated before the year concludes, with traders also looking forward to the People’s Bank of China's forthcoming interest rate announcement. Man Wah Holdings saw a 7.3% increase following its agreement to acquire the U.S. furniture maker, Gainline Recline Intermediate, for USD 58.7 million, inclusive of debt. CSPC Pharma experienced a 2.8% surge due to promising trial results for its psoriasis medication. Other notable gains included Nongfu Spring (3.8%), Galaxy Entertainment (2.2%), and Meituan (1.5%). Nevertheless, Hong Kong shares recorded a second weekly decline of 1.1%, weighed down by a decline in U.S. futures driven by concerns over inflated AI valuations and indications of decelerating economic activity in China observed in November.