Headline indices of the Hong Kong share market closed higher on Wednesday, 06 March 2019, as investors risk sentiments bolstered after Beijing unveiled plans to cut taxes and increase public expenditure and lending to rev up its slowing economy. Market gains were, however, limited as investors were cautious ahead of economic events in Europe and the United States and as they look for fresh developments about a possible U.S.-China trade deal. At closing bell, the Hang Seng Index added 76 points or 0.26% to 29,037.60. The Hang Seng China Enterprises Index rose 9.42 points or 0.08% to 11,592.03. Turnover decreased slightly to HK$114.5 billion from HK$118.7 billion on Tuesday.
China will cut nearly 2 trillion yuan ($298.31 billion) in taxes and fees for companies, Chinese Premier Li Keqiang said at the National People's Congress on Tuesday. The special bond issuance quota for local governments, a key source for infrastructure investment, has been set at 2.15 trillion yuan, according to the finance ministry. Last year's quota was set at 1.35 trillion yuan. Beijing will also step up targeted cuts in the reserve requirement ratio for smaller and medium-sized banks with an aim to boost lending to small companies by large banks by more than 30 percent, said Li.
Investors are looking for firm details about a possible U.S.-China trade deal that's helped drive a surge in global equities over the past two months. On trade developments, US Secretary of State Mike Pompeo said on Monday he thought the United States and China were on the cusp of a deal to end their trade war. Pompeo added on Tuesday that Things are in a good place, but it's got to be right.
Blue chips were mostly firmer. Tencent (00700) edged up 0.2% to HK$362. HSBC (00005) edged up 0.5% to HK$64.7. HKEX (00388) nudged up 0.3% to HK$278.4. AIA (01299) inched up 0.1% to HK$77.6.
Chinese telecom carriers were down after Chinese Premier Li Keqiang yesterday mentioned again the to raise speed and drop price initiative regarding the telecom industry. China Mobile (00941) was unchanged at HK$81. China Unicom (00762) dipped 2.4% to HK$9.57. China Telecom (00728) sank 3.9% to HK$4.2. But China Tower (00788) bounced 2.2% to HK$1.86 after BOCI's target price hike.