Hong Kong Stocks Rebound on Bargain Hunting

The Hang Seng Index rose 1.5%, or 338 points, to 23,224 on Thursday, as gains in technology, financial, and retail stocks lifted the broader market. Buying was supported by bargain hunting after recent losses, despite a technology-driven selloff on Wall Street overnight. Investor sentiment toward technology shares remained positive amid growing optimism over the long-term outlook for Hong Kong-listed internet companies. In addition, sentiment was further supported by growing enthusiasm for AI after Chinese developer Zhipu briefly surpassed HK$1 trillion in market value last month. Meanwhile, according to reports Kevin Warsh said inflation expectations and inflation risks had eased in recent weeks while reaffirming the Federal Reserve's commitment to restoring price stability. Notable gainers were Tencent (3.0%), Xiaomi (3.5%), Meituan (2.0%), Kuaishou (6.5%), and Akeso (7.3%).

The Hang Seng Index slipped 0.6%, or 146 points, to close at 22,881 on Tuesday, giving back part of the previous session’s gains as investors turned cautious despite continued policy support from Beijing. Sentiment remained subdued after China’s central bank conducted overnight reverse repo operations to maintain ample liquidity in the financial system, with the move providing limited support to equities. Investors also weighed concerns that Chinese stocks continue to lag the global artificial intelligence-driven rally despite strong advances in overseas markets, reflecting lingering uncertainty over China’s economic recovery. Losses were led by InSilico Medicine (-3.5%), Trip.com (-3.5%), Pop Mart (-2.0%), Akeso (-3.4%), and AIA (-1.3%). For the month of June, the Hang Seng Index dropped 9.1%, marking its weakest monthly performance this year and benchmark also lost 7.6% in the second quarter. Hong Kong market is closed on Wednesday for a public holiday.

The Hang Seng Index climbed 1.6%, or 355 points, to close at 23,027 on Monday, rebounding after back-to-back declines in the previous two sessions as bargain hunting emerged in beaten-down technology shares. Gains were led by health technology and retail trade stocks, while sentiment was further supported by firmer global risk appetite after reports that the US and Iran had stepped back from escalating hostilities, boosting US equity futures and encouraging buying across Asian markets. Investor confidence also drew support from stronger-than-expected profits at China's industrial firms in the first five months of the year, confidence in the country's manufacturing sector. However, investors took caution ahead of this week's release of China's official PMI data. Among the top gainers were Tencent (+2.0%), Semiconductor Manufacturing International Corporation (+6.0%), Meituan (+5.3%), Xiaomi (+2.1%), and AIA (+2.0%).