Hong Kong Shares Steady as AI Optimism Offset Worries

The Hang Seng Index were little changed, closing at 26,407 on Monday, as early losses driven by geopolitical concerns were offset by selective buying in technology and financial shares later in the session. Sentiment initially weakened after US President Donald Trump rejected Iran’s latest peace proposal as “totally unacceptable,” reviving concerns over prolonged tensions in the Middle East and potential disruptions to shipping through the Strait of Hormuz. However, bargain hunting later supported the market, with Shenzhen Ldrobot surging more than 150% in its Hong Kong debut amid strong demand for AI and robotics-related stocks. GoFintech Quantum Innovation also rallied after announcing a strategic partnership in quantum-enabled drug discovery. Investors still remained cautious ahead of the release of Hong Kong’s first-quarter GDP growth data later this week, which could offer fresh signals on the city’s economic recovery.

The Hang Seng Index fell 102 points, or 0.4%, to 26,290 on Monday, reversing earlier gains as investor sentiment weakened after US President Donald Trump rejected Iran’s latest peace proposal as “totally unacceptable,” casting doubt on efforts to secure a lasting ceasefire in the 10-week Middle East conflict. The remarks heightened concerns over prolonged disruptions to shipping through the Strait of Hormuz, pushing oil prices sharply higher and dampening risk appetite across the region. In Hong Kong, finance and technology services shares led losses. Notable laggards included Tencent Holdings (-0.9%), Pop Mart (-1.8%), Hong Kong Exchanges and Clearing (-0.8%), Kuaishou Technology (-3.6%), and Xiaomi Corporation (-1.3%). Investors also remained cautious ahead of the release of Hong Kong’s first-quarter GDP growth data later this week, which could offer fresh signals on the strength of the city’s economic recovery.

The Hang Seng Index fell by 233 points, or 0.9%, to close at 26,394 on Friday, reversing gains from the previous sessions as renewed tensions in the Middle East dampened investor sentiment. The US and Iran exchanged fire in the Strait of Hormuz, with both sides accusing each other of initiating the attack, raising fears of further escalation in the region and potential disruption to global energy shipping routes. Locally, a risk-off tone was evident across sectors, as investors engaged in profit-taking and scaled back exposure to equities. Notable laggards included Tencent Holdings (-1.3%), AIA Group (-2.9%), SMIC (-4.4%), Deepxi Technology (-9.2%), and Meituan Class (-0.2%). In contrast, Kuaishou and Pop Mart International outperformed the broader market, rising 9.4% and 3.6%, respectively. Separately, Hong Kong Exchanges and Clearing proposed reviving gold futures to strengthen risk-management tools amid rising geopolitical uncertainty and demand for hedging.