Hong Kong Shares Turn Flat After Early Gains

The Hang Seng Index traded flat to close at around 26,389 on Thursday, as early gains faded and investors remained cautious while closely monitoring ongoing talks between US President Donald Trump and Chinese President Xi Jinping in Beijing. Sentiment was initially supported by hopes that the summit could help stabilise US-China relations and reduce geopolitical tensions, particularly around trade, tariffs, AI, and regional security issues. However, gains faded as the session progressed, as traders turned more cautious ahead of potential policy signals and diplomatic developments emerging from the meeting. Electronic technology shares continued to  support to the market, with InnoScience Technology and Li Auto gained 2.5% and 4.3%, respectively. In contrast, Tencent Holdings (-0.6%), Semiconductor Manufacturing International Corporation (-3.5%), Meituan Class (-2.3%), and Xiaomi Corporation (-0.1%) declined.

The Hang Seng Index surged 160 points, or 0.6%, to 26,550 on Thursday, extending gains from the previous session as optimism over easing US-China tensions lifted sentiment across Hong Kong equities. Markets rose as investors priced in reduced geopolitical risk and potential stabilisation of US-China relations ahead of the Trump-Xi summit in Beijing. The advance also tracked broader regional strength, with technology-related stocks acting as the main driver of the rally. Tencent Holdings led gains, up 2.6%. Among other notable movers were Meituan Class (3.9%), InnoScience Technology (3.4%), Kuaishou Technology (4.8%), Xiaomi Corporation (2.2%), and Semiconductor Manufacturing International Corporation (1.6%). However, markets remain sensitive to developments in US economic data, Federal Reserve interest rate expectations, and any updates on US-China diplomatic talks, which could quickly shift momentum in either direction.

The Hang Seng Index rose 41 points, or 0.2%, to close at 26,388 on Wednesday, as gains in technology services shares helped support the market despite lingering concerns over rising geopolitical tensions and persistent inflation pressures. Sentiment remained cautious as investors monitored the anticipated Trump-Xi meeting and developments in the Middle East after President Donald Trump adopted a tougher stance toward Iran following criticism of ceasefire efforts. In Hong Kong, shares of MINISO Group rose 4.6% after the company issued a strong Q1 outlook, forecasting revenue growth of 28%-29% and a sharp increase in profits. Among notable movers included Tencent Holdings (1.4%), Meituan Class (4.5%), and Xiaomi Corporation (1.2%). In contrast, Pop Mart fell 1.7% after warning that rising raw material and fuel costs could pressure 2026 profit margins, despite continued strength in overseas demand for its collectibles.