Hong Kong Stocks Begin Month Higher

The Hang Seng Index edged up 0.4%, or 94 points, to 25,978 on Monday, tracking gains across global markets as investor sentiment improved on optimism over renewed US-Iran talks. Oil prices declined while US equity-index futures advanced after US President Donald Trump announced that fresh negotiations with Iran would begin on Monday, raising hopes of easing tensions in the Middle East and the eventual reopening of the Strait of Hormuz. In addition, Hong Kong Financial Secretary Paul Chan signaled that the government is expected to raise its 2026 GDP growth forecast later this month following stronger-than-expected economic performance, while the launch of offshore China Government Bond Futures reinforced the city's role as an international financial hub. Notable movers included Tencent (2.1%), Semiconductor Manufacturing International Corporation (0.5%), Kuaishou (1.2%), Lenovo (0.5%), and Shenzhen Xunce (15.8%).

The Hang Seng Index was little changed, edging up 0.1%, or 26 points, to close at 25,884 on Friday, rising for fifth consecutive session as investors locked in some profits following the benchmark’s recent rally while weighing mixed market signals. Sentiment was dampened after China's official PMIs unexpectedly fell back into contraction in July. Losses accelerated after Zhongji Innolight declined on its Hong Kong trading debut despite raising approximately HK$53.4 billion in one of the city's largest IPOs this year, highlighting caution toward AI and semiconductor-related stocks amid a broader global technology selloff. Property stocks also came under pressure as analysts cautioned that Hong Kong's housing rally may slow after a strong first half. Still, the index posts best week, up 3.7%, since September 2025. Notable movers were Z.AI Co. (14.6%), Tencent (0.7%), SMIC (2.0%), Kingboard Laminates (1.0%), and Lenovo (9.8%).

The Hang Seng Index rose 0.2%, or 51 points, to close at 25,859 on Thursday, recovering slightly despite pressure from weaker global sentiment after the US Federal Reserve kept interest rates unchanged while highlighting ongoing inflation risks. In line with the Fed's decision, the Hong Kong Monetary Authority kept its base rate unchanged at 4.0% under the city's Linked Exchange Rate System. Gains remained limited as investors weighed a sharp rise in longer-dated US Treasury yields, renewed concerns over AI spending following mixed US tech earnings, and escalating Middle East tensions that pushed Brent crude prices nearly 8% higher. Market sentiment also stayed cautious ahead of China’s PMI data due Friday. The index held above water despite the strong debut of AI optical-module maker Zhongji Innolight, which raised HK$53.4 billion in Hong Kong’s largest IPO in seven years. Notable movers were Tencent (1.2%), Meituan Class (0.4%), Zijin Gold (0.4%), AIA (1.9%), and Kuaishou (0.3%).