Hong Kong Shares Trade in the Red

The Hang Seng Index fell 0.4% to around 25,480 in early trading on Wednesday, following a largely flat session the day before. The index lagged other Asian benchmarks, which were supported by renewed strength in tech stocks and hopes that the Middle East conflict could be moving toward a resolution, with the US signaling progress toward a potential peace agreement despite fresh hostilities. Early laggards included Tencent (-0.3%), Alibaba (-0.9%), CNOOC (-3.3%), and AIA Group (-1.3%). These losses were partly offset by gains in select technology and industrial names, with Xiaomi edging up 0.2%, Semiconductor Manufacturing International Corporation rising 3.7%, and Lenovo surging 6.9%.

The Hang Seng Index traded almost flat, closing around 25,600 on Tuesday after giving up earlier gains, as renewed concerns over Middle East supply risks were triggered by US military strikes in southern Iran. Sentiment remained cautious amid ongoing US-Iran peace negotiations, which investors continued to monitor for signs of de-escalation. However, Chinese equities listed in Hong Kong advanced after the holiday, with investors largely shrugging off Beijing’s latest crackdown on illicit cross-border stock trading and instead rotating into technology shares. Finance and technology services declined while electronic technology shares surged around 12.8%. Among notable laggards were Tencent Holdings (-0.5%), Meituan Class (-3.1%), Xiaomi Corporation (-0.8%). In contrast, Semiconductor Manufacturing International Corporation rose 5.95%, while Lenovo Group and Dongyue Group jumped 15.3% and 15.6%, respectively.

The Hang Seng Index rose 60 points, or 0.2%, to around 25,660 on Tuesday, as optimism surrounding a potential US-Iran agreement earlier supported Asian equities and weighed on oil prices. Washington and Tehran were reportedly edging closer to a possible deal aimed at reducing tensions and restoring access through the Strait of Hormuz. Sentiment toward Xiaomi Corporation deteriorated after short bets on the company climbed to a record high amid concerns over rising memory costs and intensifying competition in China’s electric vehicle market. Financial and electronic technology stocks led the index higher, with notable gains in Semiconductor Manufacturing International Corporation and Lenovo Group, which surged 9.1% and 10.7%, respectively. Other movers were Xiaomi Corporation (0.4%), Kingboard Laminates (8.5%), and XPeng Inc. (4.7%). In contrast, the technology services sector fell about 0.7%, with Tencent Holdings down nearly 1%.