Headline indices of the Hong Kong share market closed higher on Tuesday, 24 July 2018, following gains in Mainland China A-share market and other Asian bourses, after the China State Council's meeting chaired by Premier Li Keqiang yesterday said China will continue with stable macro policies and adopt a combination of fiscal and financial measures in an effort to boost domestic demand and bolster support for real economy and to shield the world's second-largest economy from the worsening trade row with Washington. Around late afternoon, the Hang Seng Index rose 424.20 points or 1.5% to 28,680.32. The Hang Seng China Enterprises Index added 277.69 points or 2.6% to 11,009.

China is looking to adopt more vigorous fiscal policy, and is looking at potential tax cuts for Chinese businesses, helping to drive Asia markets higher for Tuesday. After more than a year of pushing a crackdown on dangerous debt levels in the financial system, Premier Li Keqiang said the government's fiscal policy should be more active, according to an announcement late Monday by the State Council, or Cabinet. Li also stressed the government would accelerate plans to reduce taxes by more than 1.1 trillion yuan ($160 billion) and to issue 1.35 trillion yuan in local government special bonds for infrastructure.

China's central bank lent 502 billion yuan ($74.36 billion) to financial institutions via its one-year medium-term lending facility (MLF), stepping up efforts to support lending as growth slowed.

The shift in focus toward easing also comes after the central bank in July released 700 billion yuan in liquidity by cutting some banks' reserve requirements, prompted by concerns over tighter cash conditions and a potential economic drag from the U.S. trade dispute. It was the third such cut this year.

Shares of infrastructure linked sector climbed up on further signs of a shift by China toward monetary expansion. China Communications Construction (01800) soared 11.6% to HK$8.35. China Railway Group (00390) shot up 9.8% to HK$6.7. China Railway Construction Corporation (01186) surged 12.7% to HK$9.31. CRRC Corporation (01766) gained 4.9% to HK$6.43.

Cement counters also benefited from potential recovery of infrastructure investment. Anhui Conch Cement (00914) jumped 7% to HK$48.45. CR Cement (01313) soared 8.7% to HK$9.01. CNBM (03323) added 8.4% to HK$8.36. BBMG (02009) put on 5% to HK$2.93. West China Cement (02233) added 6.4% to HK$1.34.

Resources plays also jumped on the bandwagon. Maanshan Iron & Steel (00323) rose 6.2% to HK$3.94. Angang Steel (00347) ascended 6.8% to HK$8.07. Jiangxi Copper (00358) gained 5.9% to HK$9.98. Chongqing Iron & Steel (01053) soared 17.8% to HK$1.39 after it issued positive profit alert.