Hong Kong Stock Afternoon Commentary: Tech Index Surges, Aviation and Industrial Concept Stocks Soar

The Hong Kong stock market has witnessed a slight rebound in the afternoon session, with the technology index rising nearly 1% and aviation and golden industrial concept stocks collectively surging. Cathay Pacific, a prominent aviation stock, has increased by over 9%, reflecting a broader recovery in the sector. Network technology stocks have also contributed to the market's resilience.

The Hang Seng TECH Index, which tracks the 30 largest technology companies listed in Hong Kong, has shown remarkable resilience. According to back-testing data, it has increased by 36% in 2019 and 60% in the first 10 months of 2020. This growth is driven by the increasing demand for technology services and products, as well as the rapid digital transformation across various industries. The launch of the Hang Seng TECH Index Futures and Options in 2020 has provided investors with new tools to manage risks in their exposures to Hong Kong-listed technology companies, further boosting market confidence.

The surge in aviation and golden industrial concept stocks can be attributed to several factors. Firstly, the relaxation of COVID-19 restrictions and the subsequent increase in travel demand have boosted the aviation sector. Cathay Pacific's stock surged by over 9% due to improved travel sentiment and the company's cost-cutting measures. Secondly, the golden industrial concept stocks, which include companies involved in infrastructure and industrial automation, have benefited from the government's infrastructure spending and the ongoing industrial transformation. The Hong Kong government's commitment to investing in infrastructure projects, such as the Hong Kong-Shenzhen High-Speed Rail Link, has provided a boost to these stocks.

However, the sustainability of this trend depends on the continued recovery of the aviation industry and the government's ability to maintain its infrastructure spending. Additionally, any geopolitical tensions or changes in government policies could impact the performance of these stocks.

In conclusion, the Hong Kong stock market has shown resilience in the afternoon session, with the technology index and aviation and golden industrial concept stocks surging. The Hang Seng TECH Index's performance aligns with the global tech industry's growth, while the aviation sector's recovery reflects the broader industry's rebound. The government's infrastructure spending and the ongoing industrial transformation have also contributed to the market's resilience. Investors should monitor these trends and remain vigilant to potential risks and changes in market dynamics.