Hong Kong Stocks Rebound Amid Strong Trade Data

The Hang Seng Index rose 0.5%, or 127 points, to close at 24,341 on Tuesday, rebounding from morning losses as investors digested stronger-than-expected China trade data. June exports and imports both exceeded forecasts, pointing to resilient external demand. Sentiment was also supported by optimism over Hong Kong's IPO pipeline, though gains remained capped by geopolitical tensions and elevated oil prices. Shein stayed in focus after Executive Chairman Donald Tang stepped down ahead of its planned Hong Kong IPO, with founder and CEO Sky Xu assuming the chairman role. While the change is not expected to derail the listing, investors are watching corporate governance developments closely. Attention now turns to China's second-quarter GDP and other key economic data due on Wednesday. Among the top gainers were Kingboard Laminates (14.2%), China Hongqiao (7.1%), Kuaishou (0.5%), Xiaomi (0.8%), and Meituan (1.6%).

The Hang Seng Index slipped 1.0%, or 240 points, to 23,970 on Tuesday, as renewed geopolitical tensions and broad-based weakness across Asian markets weighed on sentiment. Weaker US futures further dampened market sentiment after Wall Street retreated overnight, following President Trump's pledge to reinstate a blockade on Iranian shipping through the Strait of Hormuz. The renewed geopolitical tensions fueled risk aversion and lifted oil prices, prompting investors to shift toward safer assets. Meanwhile, traders remained cautious ahead of China's June trade data, due later in the day, as they looked for fresh clues on the strength of the country's economic recovery following stronger-than-expected export and import growth in May. Investors are also awaiting upcoming US economic data and central bank signals that could influence global market direction. Notable laggards were Tencent (-1.5%), Knowledge Atlas (-4.9%), Xiaomi (-0.5%), Meituan (-1.5%), and MiniMax (-3.1%).

The Hang Seng Index edged up 0.2%, or 39 points, to close at 24,214 on Monday, with gains trimmed as technology shares turned lower toward the close. Investor sentiment remained cautious after oil prices climbed and US equity futures slipped following fresh US strikes on Iran, while uncertainty surrounding the status of the Strait of Hormuz kept markets on edge. In Hong Kong, Sun Hung Kai Properties and Wheelock Properties prepared new residential launches this month despite expectations for more moderate home price gains. Moreover, fast-fashion giant Shein cleared a key regulatory hurdle for its planned Hong Kong IPO after receiving approval from China's securities regulator, raising expectations for one of the city's largest listings in recent years. Notable gainers included Knowledge Atlas (0.3%), Kuaishou Technology (1.3%), Pop Mart (1.9%), China Hongqiao (3.6%), and Hong Kong Exchanges and Clearing (0.7%).