Hong Kong Shares Extend Gains

The Hang Seng Index edged up 0.6%, or 160 points, to 25,370 on Tuesday, extending its recent gains as strong capital inflows and robust IPO activity offset another wave of global selling in semiconductor stocks. Tech and AI-related shares continued to attract buying interest, while optimism surrounding Hong Kong's revitalized equity market underpinned broader market performance. Investor sentiment was further supported by the successful listing of Zhongji Innolight, one of the largest IPOs in Asia this year, underscoring sustained demand for Chinese technology offerings despite broader weakness in the global chip sector. Meanwhile, investors remained focused on Shein's planned Hong Kong listing, with attention centered on its valuation and recent financial results, while also awaiting earnings from major US technology companies and the Fed's latest policy decision. Notable gainers included SMIC (2.3%), Xiaomi (1.6%), Tencent (1.4%), Meituan (2.3%), and Horizon Robotics (6.3%).

The Hang Seng Index rose 1.0%, or 244 points, to close at 25,207 on Monday, recouping losses from the previous session, with technology and financial stocks leading the rebound. Gains were led by technology and financial stocks, with market participants positioning ahead of a busy week of global events, including major central bank policy meetings and corporate earnings releases.  Sentiment was also lifted by easing geopolitical tensions after the US paused strikes on Iran over the weekend, sending oil prices sharply lower and improving global risk appetite. Optimism surrounding Hong Kong's IPO pipeline, led by Shein's continued progress toward a Hong Kong listing, also helped support sentiment.  However, gains remained limited by cautious sentiment as investors awaited the US Federal Reserve's monetary policy decision and the release of China's PMI data later this week. Notable gainers included Xiaomi (7.3%), Meituan (3.0%), Z.Ai Co. (3.6%), Tencent (1.9%), and Trip.com (3.8%).

The Hang Seng Index slipped 1.0%, or 248 points, to close at 24,963 on Friday, giving back part of the previous session's gains as surging oil prices and renewed geopolitical tensions dampened investor sentiment. Brent crude climbed above $100 a barrel for the first time in two months after intensified Houthi attacks on vessels in the Red Sea heightened supply concerns, while President Donald Trump's threat to expand strikes on Iran added to market uncertainty. The risk-off mood was reinforced by a technology-led selloff on Wall Street and higher US Treasury yields, fueling expectations that the Federal Reserve could keep interest rates elevated for longer. Limiting the decline, China's central bank injected the most liquidity into the financial system in five months through its medium-term lending facility, boosting hopes of further policy support for economic growth. Notable laggards were Tencent (-2.4%), Lenovo (-1.1%), AIA (-0.6%), Meituan (-0.7%), and Kingboard Laminates (-7.3%).