Hong Kong Stocks Retreat

The Hang Seng Index fell 0.9%, or 215 points, to 24,873 on Wednesday, reversing a modest gain in the previous session as investors took profits in technology stocks and remained cautious ahead of the expected meeting between Chinese President Xi Jinping and US President Donald Trump. The decline followed three consecutive sessions of gains, with technology shares leading the rebound. Investors are watching the talks for signals on trade, semiconductors, artificial intelligence and supply chains, with AI emerging as a key area of strategic competition between the world's two largest economies. Meanwhile, Brent crude fell below $100 a barrel, offering some relief from recent inflation concerns. Finance, technology services and retail trade stocks led the decline, with Tencent (-1.1%), AIA (-1.3%), Xiaomi (-1.0%) and Shanghai Iluvatar CoreX (-5.2%) among notable laggards. Alibaba also remained in focus after its September 23 AGM voting-results disclosure.

The Hang Seng Index rose 0.2%, or 45 points, to close at 25,088 on Tuesday, extending their winning streak to a third session as renewed strength in artificial-intelligence and semiconductor stocks, along with lower oil prices, boosted risk appetite. In Hong Kong, technology stocks remained in focus following a positive lead from Wall Street, while investors also monitored developments ahead of the expected meeting between US President Donald Trump and Chinese President Xi Jinping later this week. Hong Kong's IPO market also remained active, with Ligent Technologies scheduled to begin trading on Tuesday at an IPO price of up to HK$32.96 per share. Meanwhile, RoboTechnik, Kinwong Electronic, Red Avenue New Materials and Direct Drive Tech are seeking to raise up to US$1.83 billion combined, underscoring continued activity in the city's equity market. Notable movers included Tencent (5.0%), Lenovo (2.8%), and Innovent Biologics (0.7%) while Z.AI Co. (-6.6%) and MiniMax (-3.4%) declined.

The Hang Seng Index climbed 1.2%, or 292 points, to close at 25,043 on Monday, led by technology and healthcare stocks as Asian equities benefited from continued optimism over strong demand for AI infrastructure, while easing oil prices provided some relief as Brent crude slipped to around $102 a barrel amid hopes of a gradual restoration of Saudi supply. Hong Kong’s IPO market also remained in focus, with AI infrastructure software provider Transwarp Technology (6.2%) making its Hong Kong debut after raising funds at HK$49 per share and gaining access to Southbound Stock Connect on its first trading day. Notable movers included Tencent (2.6%), XtalPi (5.9%), Z.AI Co. (1.8%), Genscript Biotech (5.2%) and Innovent Biologics (6.0%). Investors meanwhile awaited further developments ahead of the planned meeting between US President Donald Trump and Chinese President Xi Jinping, with trade, technology and AI restrictions among the issues in focus.