Hong Kong Stocks Extend Decline to Second Session

The Hang Seng Index edged up 0.5%, or 138 points, to close at 25,668 on Friday, recovering from an early decline as late-session buying helped the benchmark index finish in positive territory. The market came under pressure in the morning as investors locked in recent gains, but sentiment improved later in the day amid renewed interest in technology and selected heavyweight stocks. The rebound was supported by optimism over China’s economic outlook following stronger-than-expected trade data, which boosted confidence in the resilience of the country’s export sector. Beyond equities, China is also pushing to strengthen Hong Kong’s position as an international gold trading and storage center. Despite the modest advance, trading remained cautious as investors weighed global market conditions, interest-rate expectations, and the pace of China’s economic recovery. Notable movers included MiniMax (9.8%), Z.AI Co. (14.6%), Kingboard Laminates (9.9%), SMIC (2.4%), and Xiaomi (0.7%).

The Hang Seng Index declined 0.4%, or 110 points, to 25,420 on Friday as investors turned cautious amid rising geopolitical tensions and continued weakness in financial stocks. Asian markets traded lower after renewed tensions involving Iran pushed oil prices higher, fueling concerns that elevated energy costs could sustain inflation and delay interest rate cuts. Hong Kong-listed insurers and banks remained under pressure following concerns over China's stricter enforcement of taxes on offshore insurance products held by mainland residents, dampening expectations for cross-border wealth management demand. Losses were partly offset by gains in selected technology shares, led by AI firm MiniMax surging 6.5%, which rallied after joining the Hong Kong Stock Connect program, boosting optimism over stronger mainland investor participation. Other notable gainers included Tencent (0.7%), Z.AI Co. (5.2%), Kingboard Laminates (5.6%), and Wuci Biologics (3.0%).

The Hang Seng Index tumbled 1.5%, or 386 points, to close at 25,530 on Thursday, reversing the previous session's gains as technology and financial stocks declined amid profit-taking following a strong AI-driven rally. Sentiment weakened across Asian markets after the recent artificial intelligence-driven rally showed signs of cooling, while lingering uncertainty over efforts to reopen the Strait of Hormuz kept investors cautious. The decline was led by losses in technology and financial stocks. AI-related shares came under pressure as investors rotated out of large-cap technology stocks, while financial stocks also weighed following reports that mainland Chinese authorities had begun enforcing a 20% tax on investment gains from offshore insurance policies, raising concerns over future sales of Hong Kong-issued insurance products to mainland customers. Notable laggards included AIA (-5.9%), Tencent (-2.6%), Pop Mart International (-2.5%), SMIC (-3.9%), and Xiaomi (-2.8%).