Hong Kong Stock Movement | Hang Seng Index Closes Up 681 Points, Returns to 25,000 Level; Northbound Capital Outflows 27.3 Billion

Middle East tensions ease, U.S. stocks rebounded sharply overnight, Asia-Pacific markets and A-shares followed higher, Hong Kong stocks halted three consecutive declines, recovering from a 1,642-point drop and rebounding. The Hang Seng Index gained steadily during the midday session, rising nearly 700 points at one point, ultimately closing up 681 points, returning above the 25,000 level, though still constrained by the so-called “bull-bear dividing line” of the 250-day moving average (currently at 25,109 points).

After opening 377 points higher, the Hang Seng Index quickly faced profit-taking pressure, with gains narrowing to 173 points at one stage, hitting a low of 24,555 points. Following the upward momentum from A-shares, the market’s gain expanded again, with a midday increase of 447 points. In the afternoon, buying momentum intensified, breaking through the morning high and surpassing the 25,000 mark again, with a maximum rise of 694 points, reaching 25,077 points. The index closed up 681 points or 2.79%, at 25,063 points.

The China Enterprises Index rose 191 points or 2.31%, to 8,499; the Tech Index increased 118 points or 2.51%, to 4,830.

Total daily turnover was HKD 303.073 billion, with net outflows from Northbound funds of HKD 27.361 billion.

Among 90 blue-chip stocks, 81 advanced.

Tech stocks led the rally: Tencent (00700) up 3.1% at HKD 514; Meituan (03690) up 3.2% at HKD 79; Alibaba (09988) saw its flagship processor Hetero C950 debut, rising 2.9% to HKD 123.2; Baidu (09888) up 2.6% at HKD 112.6; Xiaomi (01810) up 1.9% at HKD 32.68.

HSBC (00005) up 4% at HKD 123.6; China Mobile (00941) up 0.2% at HKD 78; AIA (01299) rebounded 7.2% to HKD 85.1. China National Pharmaceutical Group (01099) fell 3.6% to HKD 19.68, the weakest among blue chips.

The Shanghai Composite Index ended three days of decline, rising 68 points or 1.78% to 3,881; the Shenzhen Component gained 191 points or 1.43%, closing at 13,536. The Nikkei Average reclaimed the 52,000 level, closing at 52,252, up 736 points or 1.43%; South Korea’s KOSPI closed at 5,553, up 148 points or 2.74%.

Focus Sectors

Earnings stocks remain a market focus. The heavily battered old gold company (06181) surged 2.3 times in profit last year, with dividends nearly nine times higher, jumping 16.1% to HKD 648.5; WuXi AppTec (02359) doubled its profit last year, up 10.6%, at HKD 113.6; Master Kong (00322) increased profit by 21% last year, paying a total dividend of 79.84 cents including special dividends, up 10%, at HKD 13.22, making it the best performer among the three blue chips.

Oil stocks: Oil prices rebounded sharply. CNOOC (00883) fell 3.5% to HKD 29.44; PetroChina (00857) down 0.4% at HKD 10.7.

China’s new consumer stocks: hot topics, Pop Mart (09992) up 7.4% at HKD 217.2; Guming (01364) up 5.6% at HKD 28.52.

Focus Stocks

Two new stocks listed on their first day: integrated smart logistics robot provider KAILUO Technology (02729) closed at HKD 30.7, up 84.3% from the IPO price of HKD 16.66; mainland automotive HUD (head-up display) solution provider Zejing Co. (02632) closed at HKD 27.88, down 36.9% from the IPO price of HKD 44.2.

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