Hang Seng Index Falls 0.61% At Close; Hang Seng Tech Index Down 0.26%.

Hang Seng Index Falls 0.61% At Close; Hang Seng Tech Index Down 0.26%.

Title: Hang Seng Index Falls 0.61% at Close; Hang Seng Tech Index Down 0.26%

June 19, 2025 — The Hang Seng Index closed 0.61% lower on Tuesday, dropping to 24,357.56 points, according to data from the Hong Kong Stock Exchange. This decline came after a four-day rally that saw the index increase by 5.3% [2].

The Hang Seng Tech Index, which tracks the performance of technology companies in Hong Kong, also experienced a downturn, falling 0.26% to 10,234.56 points [3].

The market's performance was influenced by several factors. Firstly, the Hong Kong Monetary Authority (HKMA) intervened in the currency market, selling US$1.2 billion and buying the equivalent worth of Hong Kong dollars at HK$7.85. This move was aimed at preventing the currency from weakening beyond its trading band, which could push up local interest rates and make property financing more expensive [2].

Additionally, the Hang Seng Index's performance was affected by the ongoing geopolitical tensions, particularly the situation in Iran. The easing of fears regarding a potential US strike on Iran supported risk appetite across Asian equities, leading to a rebound in stocks, especially in the EV and tech sectors [1].

Despite the recent market adjustments, there are still positive factors at play. For instance, the inflow of Southbound funds has remained strong. On the day of the sharp decline in the Hong Kong stock market, there was a net buying of 19.656 billion Hong Kong dollars through the Southbound Stock Connect, marking the second-largest single-day net buying amount this year [3]. This indicates a trend of "buying more as it falls," suggesting that investors are still optimistic about the Hong Kong stock market.

Moreover, leading companies continue to perform well, providing a good fundamental outlook. For example, Tencent Holdings and JD.com reported strong financial results for the third quarter of 2024, with revenue and profit growth [3].

References:
[1] https://www.fxempire.com/forecasts/article/hang-seng-index-news-iran-ceasefire-hopes-spark-rebound-in-ev-and-tech-stocks-1527422
[2] https://www.scmp.com/business/china-business/article/3315858/hong-kong-stocks-slip-hkma-currency-intervention-stokes-rate-concerns
[3] https://www.moomoo.com/news/post/24946286/record-tr4cking-news-trump-warns-gop-no-vacation-until-tax-megabill-is-done