Hong Kong's Hang Seng Index opens 0.78% higher; Hang Seng Tech Index rises 1.25%

Hong Kong's Hang Seng Index opens 0.78% higher; Hang Seng Tech Index rises 1.25%

Hong Kong's Hang Seng Index (HSI) opened 0.78% higher on April 25, 2025, while the Hang Seng Tech Index (HSTI) rose by 1.25% [1]. This positive start comes amidst a backdrop of recent market adjustments and varying factors influencing stock performance.

The HSI's opening gain was driven by several factors, including strong inflows of capital from the south through the Hong Kong Stock Connect. On November 14, 2024, the net inflow of funds through the Southbound Stock Connect reached 19.656 billion Hong Kong dollars, marking the second-largest single-day net buying amount of the year [1]. This trend of increased buying activity has continued, with a significant net inflow of funds in November, totaling 71.345 billion Hong Kong dollars [1].

The HSTI's rise was supported by the steady growth in the performance of leading companies. For instance, Tencent Holdings reported a revenue of 167.193 billion yuan for the third quarter of 2024, up 8% year-on-year, along with a significant increase in gross profit and operating profit [1]. Similarly, JD.com announced its third-quarter performance on November 14, 2024, with a revenue increase of 5.1% year-on-year and a net income increase of 47.8% year-on-year [1].

Despite these positive indicators, the market has experienced recent adjustments. On November 14, 2024, the HSI closed down by 1.96%, marking the index's fifth consecutive trading day decline, while the HSTI fell more than 20% from its high in October, re-entering a "technical bear market" [1]. However, these indices still show good gains compared to their lows in September, with the HSI up 26.88% and the HSTI up 26.88% from their respective lows [1].

The recent market adjustments can be attributed to several factors, including profit-taking and unwinding positions following the significant surge in the market from September to October. Additionally, some companies have suspended their share buyback programs due to financial reporting periods or unfavorable stock prices [1].

References:

[1] https://www.moomoo.com/news/post/98121672/record-tracking-ne%C9%AFs-white-house-considers-slashing-china-tariffs-to-de-escalate-trade