Hong Kong Hang Seng Index falls 1% to 24,922.09 points

Hong Kong Hang Seng Index falls 1% to 24,922.09 points

The Hang Seng Index (^HSI) closed at 24,922.09 points on July 2, 2025, marking a 1% decline from the previous day's close. This latest drop follows a period of volatility in the Hong Kong stock market, which has seen significant fluctuations since October 2024.

The recent market adjustment can be attributed to several factors. Firstly, the Hang Seng Tech Index has fallen more than 20% from its high in October, re-entering a "technical bear market" [2]. This decline has been exacerbated by profit-taking and unwinding positions accumulated during the market's sharp increase in September and October. Additionally, some companies have suspended their share buyback programs, further contributing to the downward trend [2].

Despite the recent market adjustments, there are still positive factors at play. For instance, the inflow of Southbound funds has remained strong, with net buying of 19.656 billion Hong Kong dollars on November 14, 2024, marking the second-largest single-day net buying amount this year [2]. Furthermore, leading companies such as Tencent and JD.com have reported steady growth in their financial performance, providing a solid fundamental outlook for the Hong Kong stock market [2].

Hang Seng Bank, one of the largest locally incorporated banks in Hong Kong, has also shown resilience in the face of increasing non-performing loans (NPLs). The bank has made extra provisions and received sufficient collateral to withstand the continued rise in NPLs, according to its CEO, Diana Cesar [3].

The Hong Kong stock market has been continuously correcting since October 8, 2024, with the Hang Seng Index dropping more than two-thirds of its gains from September 25 to October 7 [4]. While the current decline is considered relatively ample, it is believed that following the end of the short-term impact, Hong Kong stocks may welcome a rising market, particularly in the technology sector.

References:
[1] https://finance.yahoo.com/quote/%5EHSI/
[2] https://www.moomoo.com/news/post/80615851/record-tr4cking-news-live-blog-federal-reserve-chairman-jerome-powell-s-post-fomc
[3] https://www.scmp.com/business/banking-finance/article/3320163/hang-seng-says-it-has-provided-rising-bad-loans-hong-kongs-property-market-slump?utm_source=rss_feed
[4] https://www.moomoo.com/news/post/85272596/record-tr4cking-news-default