Hong Kong Stocks Rebound on Tech Rally

The Hang Seng Index rose 1.5%, or 375 points, to 25,490 on Monday, rebounding from a fourth consecutive session of decline as investors returned to beaten down stocks, with technology stocks leading the recovery. SenseTime surged around 8.2% after the artificial-intelligence company forecast a first-half profit of RMB500 million to RMB700 million, which would mark its first profit since its Hong Kong listing. Hong Kong’s IPO market also remained in focus. China’s securities regulator cleared Transsion Holdings’ Hong Kong listing, with the cellphone maker planning to issue up to 132 million H-shares. However, investors remained cautious about geopolitical risks and oil prices, while awaiting China’s latest economic data for signs of the strength of its recovery. Among notable movers included Tencent (1.3%), Semiconductor Manufacturing International Corporation (3.3%), MiniMax (2.5%), and Lenovo (0.5%).

The Hang Seng Index fell 1.1% to close at 25,117 on Friday, marking its fourth consecutive session of losses and hitting its lowest level since July 24, as technology stocks remained under pressure and investors stayed cautious ahead of key corporate earnings and amid lingering geopolitical uncertainty. Among individual stocks, Meituan fell 4.4%, while Alibaba dropped 2.1%. Lenovo retreated 3.7% after reaching an all-time high in the previous session. CK Asset Holdings fell more than 7% after the property giant reported strong interim earnings but opted not to declare a special dividend. On the upside, Semiconductor Manufacturing International Corp. rose 4.8% after reporting a sharp increase in second-quarter profit, making it the strongest-performing Hang Seng constituent at the open. On the data front, Hong Kong’s annual GDP growth slowed to 4.3% in Q2 from 5.9% in the previous quarter, pointing to a moderation in economic momentum. For the week to date, the benchmark fell 2.2%.

The Hang Seng Index edged down to 0.2%, or 44 points, to close at 25,397 on Thursday, as investors remained cautious following the previous session’s decline despite softer US inflation data that reinforced expectations for a more accommodative Federal Reserve policy. Asian markets were generally firmer after US consumer price data eased inflation concerns and supported expectations for a more accommodative monetary-policy outlook. However, gains in Hong Kong were limited as investors continued to assess weakness in technology shares and geopolitical risks. Technology stocks remained a major focus as investors digested Tencent’s second-quarter results and continued to assess developments in China’s artificial-intelligence sector. Tech performance was mixed, with Lenovo (20.2%), Z.AI Co. (9.0%), and MiniMax (5.4%) gaining, while Tencent (-4.5%) and Xiaomi (-1.8%) declined. Investors also monitored upcoming corporate earnings and developments in China's technology sector.