Hong Kong's Hang Seng Tech Index gains extend to 2%, Hang Seng Index up 1.27%.

Hong Kong's Hang Seng Tech Index gains extend to 2%, Hang Seng Index up 1.27%.

Hong Kong's Hang Seng Tech Index surged by 2% on Tuesday, July 2, 2025, while the broader Hang Seng Index (HSI) gained 1.27%. This positive performance was driven by several key factors, including strong retail sales and jobless claims data from the United States, which eased recession fears and bolstered market sentiment. Additionally, Beijing's pledge of new stimulus measures to boost domestic demand and lift corporate profits further bolstered investor confidence.

The Hang Seng Tech Index, which includes major tech giants like Alibaba and Baidu, led the sector-wide momentum, rising by 1.29% [1]. This growth was supported by the continued inflow of funds from mainland China, with the net inflow of southbound funds increasing by HK$2.7 billion on Tuesday alone. As of Tuesday, the cumulative net buying amount by southbound funds this year had reached HK$800 billion, close to the historical high of HK$808 billion in 2024 [2].

The Hang Seng Index closed at an all-day high of 25,130 points, up 135 points or 0.54%, with a turnover of nearly HK$266.1 billion ($33.9 billion) [2]. The Hang Seng China Enterprises Index, a barometer of Chinese mainland companies, also edged up 0.39% to finish at 9,075 points. The Hang Seng TECH Index, which tracks the performance of tech stocks, rose 0.38% to close at 5,606 points [2].

Despite the recent rally, global investment managers remain cautious about the valuation of the Hong Kong equity market. Keiko Kondo, head of Asia multi-asset investments at Schroders, noted that while the HSI has rallied, it is still not considered expensive compared to other markets [2].

The heavyweight stock HSBC Holdings surged to HK$100 per share, the first time since 2008, but the share price later fell to HK$99.7 apiece, up more than 1% [2]. Other stocks, such as China Life Insurance Co and Ping An Insurance (Group) Co of China, also experienced gains, with China Life Insurance Co climbing more than 4% [2].

The positive sentiment in Hong Kong's stock market is likely to continue, driven by the strong fundamentals of leading companies and the ongoing inflow of funds from the mainland. However, investors should remain vigilant about the potential risks and ensure they are making informed decisions based on the latest market developments.

References:
[1] https://www.fxempire.com/forecasts/article/hang-seng-index-news-bulls-eye-25000-as-us-data-and-china-stimulus-lift-sentiment-1534481
[2] https://www.chinadailyasia.com/article/616454