Hang Seng Slips 2.2% at Close

The Hang Seng Index edged up 0.4%, or 104 points, to close at 25,311 on Tuesday, outperforming most major Asian markets as investors looked past a regional technology selloff and continued to favor select Hong Kong and mainland Chinese stocks. Investor attention was focused on Hong Kong's active capital markets following the successful initial public offering of Zhongji Innolight, which raised approximately HK$53 billion (US$6.8 billion). The deal, Asia's second-largest IPO of 2026, highlighted sustained investor demand for companies linked to artificial intelligence infrastructure and optical networking technologies. Meanwhile, investors remained focused on Shein's planned Hong Kong listing, with attention centered on its valuation and recent financial results, while also awaiting earnings from major US technology companies and the Fed's latest policy decision. Notable gainers included Xiaomi (2.0%), Tencent (1.0%), Meituan (0.9%), and Horizon Robotics (8.9%).

The Hang Seng Index rose 1.0%, or 244 points, to close at 25,207 on Monday, recouping losses from the previous session, with technology and financial stocks leading the rebound. Gains were led by technology and financial stocks, with market participants positioning ahead of a busy week of global events, including major central bank policy meetings and corporate earnings releases.  Sentiment was also lifted by easing geopolitical tensions after the US paused strikes on Iran over the weekend, sending oil prices sharply lower and improving global risk appetite. Optimism surrounding Hong Kong's IPO pipeline, led by Shein's continued progress toward a Hong Kong listing, also helped support sentiment.  However, gains remained limited by cautious sentiment as investors awaited the US Federal Reserve's monetary policy decision and the release of China's PMI data later this week. Notable gainers included Xiaomi (7.3%), Meituan (3.0%), Z.Ai Co. (3.6%), Tencent (1.9%), and Trip.com (3.8%).

The Hang Seng Index slipped 1.0%, or 248 points, to close at 24,963 on Friday, giving back part of the previous session's gains as surging oil prices and renewed geopolitical tensions dampened investor sentiment. Brent crude climbed above $100 a barrel for the first time in two months after intensified Houthi attacks on vessels in the Red Sea heightened supply concerns, while President Donald Trump's threat to expand strikes on Iran added to market uncertainty. The risk-off mood was reinforced by a technology-led selloff on Wall Street and higher US Treasury yields, fueling expectations that the Federal Reserve could keep interest rates elevated for longer. Limiting the decline, China's central bank injected the most liquidity into the financial system in five months through its medium-term lending facility, boosting hopes of further policy support for economic growth. Notable laggards were Tencent (-2.4%), Lenovo (-1.1%), AIA (-0.6%), Meituan (-0.7%), and Kingboard Laminates (-7.3%).