Hong Kong's Hang Seng Index rises 1% to 25,891.34; Hang Seng Tech Index rises 1.3%

Hong Kong's Hang Seng Index rises 1% to 25,891.34; Hang Seng Tech Index rises 1.3%

Hong Kong's Hang Seng Index (HSI) and Hang Seng Tech Index (HSTECH) experienced notable gains on September 2, 2025. The HSI rose 1%, reaching 25,891.34 points, while the HSTECH increased by 1.3%, reaching 5,740.77 points at the open [3]. These gains come amidst a broader trend of recovery in the Hang Seng Index since the end of 2020, following the initial impact of the COVID-19 pandemic [1].

Key contributors to the Hang Seng Index's performance include Midea and Baidu, which gained over 1% at the open. Midea, a major appliance manufacturer, saw a 1.2% increase, while Baidu, a leading technology company, gained 1.1% [3]. These gains reflect the growing interest in the technology sector and the broader economic recovery.

The Hang Seng Index's performance is also influenced by the broader economic and geopolitical landscape. The shift in mainland capital toward undervalued Hong Kong-listed assets, as seen in the surging Southbound trading volumes through the Stock Connect program, has contributed to the index's growth [4]. Furthermore, the inclusion of tech giants like Tencent and Alibaba, as well as dividend powerhouses like ICBC and China Mobile, in the Hang Seng Composite Index has driven investor interest in AI-driven growth and high-yield opportunities [4].

Despite the positive performance of the Hang Seng Index and Hang Seng Tech Index, the Hang Seng Index futures opened down 0.07% on July 2, 2025. This could be attributed to a variety of factors, including market uncertainty, geopolitical tensions, or broader economic concerns. Investors may be cautious due to ongoing trade negotiations between the U.S. and China, as well as the potential impact of recent comments by U.S. President Trump on the Tehran situation [3].

Overall, the performance of the Hang Seng Index and Hang Seng Tech Index reflects a complex interplay of market factors, including the recovery from the COVID-19 pandemic, strategic additions to key indices, and broader structural shifts in China's capital markets. As the trading day progresses, investors will be closely watching for any further developments that could impact the index's performance.

References:
[1] https://www.statista.com/statistics/452949/monthly-hang-seng-index-performance/
[2] https://www.ainvest.com/news/open-hang-seng-index-1-72-hang-seng-tech-index-rises-2-08-2509/
[3] https://www.investing.com/indices/hong-kong-40-futures
[4] https://www.ainvest.com/news/hong-kong-stocks-epicenter-china-capital-reallocation-2508/