Hong Kong's Hang Seng Index closes 0.34 pct lower

Hong Kong's stock market ended lower on Friday with the benchmark Hang Seng Index down 0.34 percent to close at 25,858.89 points.

The Hang Seng China Enterprises Index fell 0.38 percent to end at 9,130.18 points and the Hang Seng Tech Index rose 0.02 percent to close at 5,599.11 points.

China's newly increased special-purpose local government bonds issued in the first quarter of 2026 stood at 1.1599 trillion yuan (about 169.7 billion U.S. dollars), according to the country's Ministry of Finance on Friday.

The number was 199.6 billion more than that of the same period last year, up 20.8 percent.

The special-purpose local government bonds are used for projects in key areas such as social services, transportation infrastructure, affordable housing, and urban renewal.

They are also intended to supplement government fund resources and help the clearance of government arrears owed to enterprises.

In the first quarter, the total treasury bond issuance exceeded 3.6 trillion yuan, up nearly 10 percent year on year, providing strong support to proactive fiscal policy.

Also on Friday, China kicked off the issuance of its 2026 ultra-long special treasury bonds, with the first two tranches comprising 20-year and 30-year fixed-rate bonds with periodic interest payments.

The issuance follows this year's Government Work Report, which proposed raising 1.3 trillion yuan (about 189.3 billion U.S. dollars) through ultra-long special treasury bonds to support projects for implementing major national strategies and building security capacity in key areas, as well as large-scale equipment upgrades and consumer goods trade-in programs.

According to a notice previously released by the Ministry of Finance, the issuance of this year's ultra-long special treasury bonds is expected to be completed by mid-October.

Ultra-long special treasury bonds are government securities with maturities typically of 10 years or longer. They are used as a policy tool to finance long-term, large-scale investments aligned with national priorities, while also helping to stabilize growth by injecting sustained fiscal support into the economy.