At open, Hang Seng Index down 0.5% and Hang Seng Tech Index down 0.58%

At open, Hang Seng Index down 0.5% and Hang Seng Tech Index down 0.58%

The Hang Seng Index and Hang Seng Tech Index both opened down on June 17, 2025, with the Hang Seng Index down 0.5% and the Hang Seng Tech Index down 0.58%. This morning's opening was influenced by a mix of geopolitical risks and economic data releases.

According to CGSI, Hong Kong Exchanges and Clearing (HKEX) is expected to see significant upside in 2025, with a target price of $520, up from $440. This upgrade reflects a rebound in trading volumes and a surge in jumbo IPOs, with 14 potential or completed jumbo IPOs in the first half of the year [1].

However, the Hang Seng Index's performance was negatively impacted by geopolitical risks, including the ongoing conflict between Israel and Iran. This tension has caused a dent in bullish momentum, with the index rising 0.42% but falling from a high of 24,439 [2].

The Hang Seng Tech Index, which includes tech giants like Alibaba and Tencent, also faced a downturn. The index was down 0.58%, with notable tech stocks such as Geely and Li Auto experiencing significant declines. Geely fell 8.92%, and Li Auto fell 5.99% [2].

Despite the downward trend, analysts remain cautiously optimistic. CGSI has noted that re-rating catalysts such as high-quality IPOs and better-than-expected Hang Seng Index performance could drive further upside [1]. Additionally, the Hang Seng Index's performance was buoyed by China's robust retail sales growth of 6.4% in May, which surpassed forecasts and marked the fastest rise since December 2023 [5].

In summary, while geopolitical risks and economic data releases have influenced the Hang Seng Index and Hang Seng Tech Index's performance, investors remain hopeful about the long-term prospects of the Hong Kong stock market, driven by factors such as increased IPO activity and strong retail sales.

References:
[1] https://hongkongbusiness.hk/markets/news/cgsi-raises-hkex-target-520-surge-in-ipo-pipeline
[2] https://www.fxempire.com/forecasts/article/hang-seng-index-news-trade-deal-boost-fades-as-israel-iran-conflict-weighs-weekly-recap-1526098
[5] https://finimize.com/content/hong-kong-stocks-edge-up-as-retail-sales-beat-forecasts