[Zhenzhuo HK Stock Experts] US stocks continued to decline on Monday, and the Central Economic Work Conference was held recently
Hong Kong Stock Market Trends and Analysis
U.S. stocks continued their decline on Monday, with tech stocks performing weakly, and all three major indices closed lower. The U.S. dollar remained soft, and the 10-year Treasury yield fell to 4.17%. Gold prices showed strong momentum, while oil prices were under pressure. Hong Kong depositary receipts generally declined, and the market is expected to open lower in early trading. Mainland stocks fell yesterday, with the Shanghai Composite Index fluctuating and closing down 0.5%. Trading volume in the Shanghai and Shenzhen markets also shrank. Hong Kong stocks followed the downward trend in overseas markets, with the index opening lower and fluctuating, while overall trading remained subdued. Market sentiment was cautious, with blue-chip stocks generally declining. In the absence of positive catalysts in the short term, the index is expected to test the support level at 25,200 points, with resistance at 26,000 points.
Industry News
The Central Economic Work Conference was recently held, emphasizing the need to do a good job in next year's economic work, accelerate the construction of a new development pattern, and promote high-quality development. The conference stressed adhering to the general principle of seeking progress while maintaining stability, better coordinating domestic economic work and international economic and trade struggles, and balancing development and security. More proactive and effective macroeconomic policies will be implemented to enhance foresight, targeting, and coordination, continuously expand domestic demand, optimize supply, improve incremental growth, revitalize stock resources, and develop new productive forces based on local conditions. The conference also emphasized deepening the construction of a unified national market, continuously preventing and defusing risks in key areas, stabilizing employment, enterprises, markets, and expectations, promoting effective qualitative improvement and reasonable quantitative growth in the economy, maintaining social harmony and stability, and achieving a good start to the "15th Five-Year Plan." The conference noted that next year's economic work should focus on stability, quality, and efficiency, leveraging the combined effects of existing and incremental policies, increasing counter-cyclical and cross-cyclical adjustments, and improving macroeconomic governance. More proactive fiscal policies will continue, maintaining necessary fiscal deficits, total debt, and expenditure levels, strengthening fiscal management, optimizing fiscal expenditure structures, and standardizing tax incentives and fiscal subsidies. Efforts will be made to address local fiscal difficulties and secure the "three guarantees" at the grassroots level. At the same time, a moderately loose monetary policy will continue, with a focus on promoting stable economic growth and reasonable price recovery. Tools such as reserve requirement ratio cuts and interest rate reductions will be used flexibly and efficiently to maintain ample liquidity, improve monetary policy transmission, and guide financial institutions to support key areas such as domestic demand expansion, technological innovation, and small and micro enterprises. The RMB exchange rate will be kept basically stable at a reasonable and balanced level. The consistency and effectiveness of macroeconomic policy orientations will be enhanced, with all types of economic and non-economic policies, as well as existing and incremental policies, being included in the consistency assessment. Expectation management mechanisms will be improved to boost social confidence. The market generally believes the conference will maintain the policy tone recently conveyed by the Politburo meeting and the "15th Five-Year Plan" proposal, focusing on stability. The economic growth target is expected to remain around 5%, with the fiscal deficit ratio staying at about 4% next year, and no strong measures to stimulate the macroeconomy are anticipated.
Harbor Family Office Business Development Director, Guo Jia Yao, CFA
Date: Tuesday, December 16, 2025
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