Hong Kong Stocks Gain for Second Session

The Hang Seng Index rose 0.7%, or 171 points, to 25,868 on Friday, extending gains from the previous session as investors welcomed softer local inflation. Hong Kong's annual inflation rate eased to 1.7% in July from 2.0% in each of the previous two months. Electronic technology, producer manufacturing, and financial shares led the advance. Investors assessed reports that fast-fashion retailer Shein had postponed its Hong Kong IPO to September following a delay in taking investor orders. Among individual stocks, J&T Global Express was among the strongest performers after reporting a 124% year-on-year jump in first-half adjusted net profit to US$350.6 million, driven by robust parcel growth and expanding international operations. Xiaomi (1.4%), MiniMax (4.5%), AIA (1.8%), Z.AI Co. (1.5%), and Kuaishou (0.7%) advanced. However, gains were tempered by elevated oil prices, with Brent crude holding above US$93 per barrel, keeping investors cautious about the inflation outlook.

The Hang Seng Index rose 0.8%, or 203 points, to close at 25,698 on Thursday, as gains in healthcare and technology stocks lifted the market. Healthcare and biotechnology stocks were among the strongest performers. Everest was the standout after reporting a 157.3% year-on-year increase in first-half revenue to RMB1.15 billion and a swing to RMB97.2 million in non-IFRS net profit, driven largely by its NEFECON kidney-disease treatment. Technology stocks also advanced, with Tencent reporting a 176% year-on-year jump in second-quarter capex to RMB52.8 billion on AI investment, while revenue rose 11% and adjusted earnings gained 9%. Sentiment was further supported by China keeping its one-year and five-year LPRs unchanged at 3.00% and 3.50%. Global bond yields also eased after the US Treasury doubled its long-term debt buybacks, supporting risk appetite. Notable movers included Tencent (0.9%), Xiaomi (1.2%), CSPC Pharmaceutical (9.6%), Genscript Biotech (13.6%), and MiniMax (6.2%).

The Hang Seng Index was little changed to close at 25,495 on Wednesday, recovering from an earlier decline as HKEX shares gained 1.6% to HK$411.40 following the exchange operator’s strong first-half results. Revenue rose 19% year-on-year, attributable profit increased 24%, and the interim dividend was lifted 24%, providing support to market sentiment. At the same time, Hong Kong and China Gas climbed after posting a 23% increase in first-half profit, helping support the broader market. Still, gains were capped by a cautious global backdrop, with investors digesting a selloff in technology shares, elevated US Treasury yields, higher oil prices, and renewed Middle East tensions that weighed on risk appetite across Asian markets. Notable movers included Xiaomi (5.1%), Tencent (0.9%), and Meituan (1.9%). In contrast, SMIC and China Unicom declined 4.6% and 12.8% respectively.