Hong Kong Equities Rise Despite Tracking Monthly Loss

Hong Kong equities rose 93 points, or 0.4%, to 26,477 in Friday morning trade, rebounding from a steep drop in the prior session and signaling a modest weekly gain. Bargain hunting lifted all sectors, ahead of key policy meetings in China. Also, the city’s robust IPO pipeline continued, with four offerings launched today seeking up to HKD 4.9 billion, according to exchange filings. Property stocks led gains after reports of further easing in Shanghai’s home purchase rules for non-residents. Consumer and financial shares also strengthened, supported by steady spending across the mainland during the Lunar holiday. Standouts included Sun Hung Kai Properties (5.4%), CK Asset Holdings (3.4%), and China Hongqiao Group (3.0%). However, the market is on track for a monthly decline of about 3%, weighed by caution ahead of China’s February PMI release. Lingering uncertainty over U.S. tariffs, stretched global tech valuations, and geopolitical risks added to the cautious tone.

The Hang Seng lost 385 points or 1.4% to close at 26,381 on Thursday, swinging from strength in the prior session amid a notable drop in U.S. futures after Nvidia's earnings failed to impress markets, and geopolitical tensions between the U.S. and Iran persisted. Meanwhile, mainland stocks were subdued, with investors cautious ahead of China’s annual legislative meeting in March. Still, losses were limited by a steady rise in spending across the mainland during the Lunar holiday last week. Meanwhile, Shanghai city reportedly eased further home purchase rules for non-residents. Tech and consumer stocks each slid over 2%, while declines in financials and property were moderate ahead of Chinese PMI data for February, due next week. Galaxy Ent. dipped 3.9% despite stronger 2025 profits, while Kuaishou Tech (-3.8%), Pop Mart Intl. (-3.4%), and Meituan (-2.6%) also lagged. In contrast, HKEX rose 0.5% after reporting higher Q4 profit and revenue on robust listings and trading activity.

Hong Kong shares fell 168 points, or 0.6%, to 26,602 in Thursday morning trade, reversing the prior day’s gains as mainland stocks retreated and traders cautiously awaited February PMI data, due next week. U.S. futures also slipped following Wall Street’s strength overnight, with sentiment dampened by IMF warnings that the U.S. current account deficit remains excessive, echoing concerns from the Trump administration. Still, losses were limited after the city’s 2026/27 budget projected an earlier-than-expected operating surplus following three years of deficits. Meanwhile, inflation in Hong Kong eased to 1.1% in January, pointing to a four-month low and slightly below forecasts. The tech index drove the decline, with Nvidia’s strong results failing to lift sentiment. Meanwhile, consumer stocks weakened on worries about a post-holiday slowdown after Lunar New Year spending. Early laggards included KE Holdings (-4.9%), Galaxy Ent. (-3.7%), Trip.com (-2.8%), and Kuaishou Tech (-2.7%).