Hong Kong Stocks Hit One-Month High

The Hang Seng Index rose 1.3%, or 317 points, to 24,660 on Wednesday, its highest level since June 2026, tracking Wall Street higher after softer-than-expected US inflation data eased concerns over near-term Federal Reserve interest rate hikes. Markets looked beyond renewed Middle East tensions after President Donald Trump threatened further strikes on Iran and reinstated a US blockade in the Strait of Hormuz. Investors also assessed China's second-quarter GDP data, which showed the economy expanded 4.3% year-on-year, slowing from 5.0% in the first quarter and missing market expectations, highlighting persistent domestic economic headwinds. Technology stocks led the advance, alongside retail trade and producer manufacturing shares, with Lenovo (4.7%), AIA (3.1%), Innovent Biologics (5.0%), Tencent (1.5%), and Shanghai Iluvatar CoreX (0.6%) among the top gainers.

HK50 increased to 24514.00 Index Points, the highest since June 2026. Over the past 4 weeks, Hong Kong Stock Market Index (HK50) gained 0.22%, and in the last 12 months, it increased 0.12%.

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%).