Hong Kong Stocks Edge Higher

The Hang Seng Index edged up 0.4%, or 101 points, to 24,302 on Thursday, extending the previous session's strong rally as investors continued to favor technology and semiconductor shares. Market sentiment was supported by a busy IPO pipeline, with Apple supplier Luxshare Precision Industry set to debut at HK$63.25, near its IPO price, while AI firm Zhipu AI launched a Hong Kong share sale seeking to raise up to HK$4 billion, reinforcing optimism toward AI-related stocks. Gains came despite renewed U.S.-Iran hostilities that pushed oil prices above $74 a barrel and lifted Treasury yields, while investors also awaited China's June inflation data. Technology and retail trade stocks led the advance, with Zhipu AI, also known as Knowledge Atlas, soaring 14.5%. Other notable gainers included Semiconductor Manufacturing International Corporation (4.2%), Xiaomi (1.7%), MiniMax (2.0%), Lenovo (3.9%), and Shanghai Iluvatar CoreX (4.6%).

The Hang Seng Index surged 3.0%, or 703 points, to close at 24,199 on Wednesday, marking its strongest gain in weeks as technology shares spearheaded broad-based advances despite renewed geopolitical tensions in the Middle East. Investor sentiment remained resilient after the US launched fresh strikes on Iran in retaliation for attacks on commercial vessels in the Strait of Hormuz, even as the escalation pushed oil prices higher. Buying was driven by continued optimism over artificial intelligence and semiconductor-related stocks, while Hong Kong's robust IPO market further supported risk appetite. Momenta Global was set to debut slightly above its offer price after raising HK$5.89 billion in its initial public offering, highlighting sustained demand for technology listings. Investors also positioned ahead of China's June consumer and producer inflation data due on Thursday. Among the top gainers were Tencent (+2.4%), SMIC (+2.9%), Lenovo (+4.4%), Kuaishou (+1.2%), and Xiaomi (+2.9%).

The Hang Seng Index fell 0.5%, or 119 points, to close at 23,497 on Tuesday, reversing earlier gains as property stocks led declines and investors turned cautious ahead of key US and Chinese economic events. Sentiment weakened after the World Bank projected China's economic growth would slow to 4.4% in 2026 and 4.3% in 2027, citing the prolonged property downturn and subdued consumer demand. Investors also awaited the US Federal Reserve's latest policy meeting and China's June CPI and PPI data due this week for clues on the policy outlook. Property developers led losses after the sector index dropped more than 3%, while technology shares also traded lower. Meanwhile, Beijing and Hong Kong announced new measures to expand currency, bond, and gold trading, aiming to strengthen the city's role as a leading offshore yuan hub. Among notable losers were Kuaishou (-12.0%), Kingboard Laminates (-5.2%), Xiaomi (-0.8%), SMIC (-3.0%), and AIA (-1.9%).