Hong Kong's Hang Seng Index rises 1.2% to 25,938.13 at close

Hong Kong's Hang Seng Index rises 1.2% to 25,938.13 at close

The Hang Seng Index (HSI) closed at 25,938.13 on September 2, 2025, marking a significant 1.2% increase from the previous day's close. This performance reflects a broader trend of recovery in the Hong Kong stock market following the initial impact of the COVID-19 pandemic.

The Hang Seng Index, which is market value-weighted and composed of the largest companies listed on the Hong Kong Stock Exchange, has shown consistent growth since the end of 2020. The index's performance is driven by various factors, including the stabilization of the pandemic and the rollout of vaccines [1]. Additionally, the inclusion of Singapore-headquartered biotech firm Mirxes in the Hang Seng Composite Index has enhanced the index's visibility and trading liquidity [2].

Key contributors to the Hang Seng Index's performance include Midea and Baidu, which gained over 1% at the open. Midea, a major appliance manufacturer, saw a 1.2% increase, while Baidu, a leading technology company, gained 1.1% [2]. These gains reflect the growing interest in the technology sector and the broader economic recovery.

The Hang Seng Index's performance is also influenced by the broader economic and geopolitical landscape. The shift in mainland capital toward undervalued Hong Kong-listed assets, as seen in the surging Southbound trading volumes through the Stock Connect program, has contributed to the index's growth [4]. Furthermore, the inclusion of tech giants like Tencent and Alibaba, as well as dividend powerhouses like ICBC and China Mobile, in the Hang Seng Composite Index has driven investor interest in AI-driven growth and high-yield opportunities [4].

Despite the positive performance of the Hang Seng Index, the Hang Seng Index futures opened down 0.07% on July 2, 2025. This could be attributed to a variety of factors, including market uncertainty, geopolitical tensions, or broader economic concerns. Investors may be cautious due to ongoing trade negotiations between the U.S. and China, as well as the potential impact of recent comments by U.S. President Trump on the Tehran situation [3].

Overall, the performance of the Hang Seng Index reflects a complex interplay of market factors, including the recovery from the COVID-19 pandemic, strategic additions to key indices, and broader structural shifts in China's capital markets. As the trading day progresses, investors will be closely watching for any further developments that could impact the index's performance.

References:
[1] https://www.statista.com/statistics/452949/monthly-hang-seng-index-performance/
[2] https://www.ainvest.com/news/open-hang-seng-index-0-57-tech-index-0-74-midea-baidu-gained-1-2509/
[3] https://www.investing.com/indices/hong-kong-40-futures
[4] https://www.ainvest.com/news/hong-kong-stocks-epicenter-china-capital-reallocation-2508/