Hang Seng Pares Gains at Close

The Hang Seng rose 72 points, or 0.3%, to end at 25,321 on Thursday, halting a three-day decline as financials and property stocks led gains. Bargain hunting helped lift the market from an 11-week low. Sentiment also improved after China signaled a shift toward economic rebalancing, setting its 2026 growth target at 4.5%–5% from the “around 5%” pace of recent years. Beijing’s 15th five-year plan pledged higher spending on innovation, high-tech industries, scientific research, and household consumption, while keeping fiscal deficit at 4.0% of GDP and inflation near 2.0%. Early strength faded, however, as U.S. futures fell sharply on mounting geopolitical risks, even after President Trump vowed protection for shippers following a U.S. submarine’s sinking of an Iranian warship. Caution also grew ahead of key Chinese data next week, including February inflation and trade figures. Standouts included Akeso Inc. (7.0%), AIA Group (5.1%), XPeng (2.8%), and Sun Hung Kai Properties (2.4%).

Hong Kong stocks surged 433 points, or 1.7%, to 25,679 in early Thursday trade, snapping a three-day slide as bargain hunters stepped in after markets hit an 11-week low. Confidence was buoyed by Premier Li Qiang’s pledge to sustain momentum after China met its 2025 growth target, with officials setting a slightly lower 2026 goal of 4.5%–5%. Fiscal support also remained firm, with local governments cleared to issue CNY 4.4 trillion in special-purpose bonds. Further, Beijing plans to issue CNY 1.3 trillion in ultralong treasuries, matching last year’s quota. Despite the rally, a sharp drop in U.S. futures capped gains amid worries over Middle East tensions and their impact on energy logistics and inflation. Locally, Hong Kong retail sales growth slowed to a five-month low of 3.4% in January from the prior 5.1%. Broad-based gains were led by property, financials, and tech. Among standout movers were AIA Group (4.4%), Minimax Group (4.0%), Innovent Biologics (3.9%), and XPeng (3.5%).

The Hang Seng tumbled 518 points, or 2.0%, to close at 25,249 on Wednesday, marking a third straight fall and its lowest since mid-December. A retreat in U.S. stock futures weighed heavily, as mounting concerns over the Middle East conflict raised fears of repricing geopolitics, energy logistics, and prolonged inflation pressures. Mainland weakness added to the bearish tone, with official data showing China’s manufacturing activity contracted for a second month in February as soft domestic demand and investment offset resilient exports. Limiting the downside were potential policy signals from China’s annual parliamentary meeting, which begins today. Losses in Hong Kong were broad, led by financials, property, and consumer stocks. Major laggards included Minimax Group (-9.6%), Akeso Inc. (-5.1%), AIA Group (-5.0%), CITIC Ltd. (-4.5%), and MTR Corp. (-3.8%). In contrast, aluminum producers gained as base-metal prices climbed following a major Qatari smelter’s decision to halt operations.