HK Stock Market Move | Infrastructure stocks saw an increase in their gains at the end of the day. The strength and pace of policies exceeded expectations. Institutions stated that domestic infrastructure investment remains the main driving force for economic growth.

Infrastructure stocks extended their gains in the afternoon session. As of the time of writing, China Communication Construction (01800) rose 5.45% to 4.26 Hong Kong dollars; China Railway (00390) rose 4.01% to 3.37 Hong Kong dollars; China Railway Construction Corporation (01186) rose 3.79% to 4.66 Hong Kong dollars; and CRRC Corporation (01766) rose 3.49% to 4.75 Hong Kong dollars. On the news front, the State Council Information Office held a press conference in the morning, and the central bank stated that it will introduce a "combination of measures", including lowering the deposit reserve ratio and creating new monetary policy tools to support the stable development of the stock market. The Huachu Financial team believes that the reduction in reserves, combined with the reduction in interest rates and adjustments to existing mortgage rates, exceeded expectations in terms of policy strength and timing. CITIC SEC believes that since the beginning of this year, the overall construction industry has been under pressure, with infrastructure investment playing an important role in economic growth. The issuance of special and medium-to-long-term national bonds by local governments may alleviate industry pressures. Looking ahead, domestic infrastructure investment will continue to be a major driver of economic growth, state-owned enterprises in the construction sector are generally more stable, and opportunities for development are emerging in certain niche areas, with the construction markets overseas such as the Middle East and Southeast Asia expected to continue to experience rapid growth.