Hong Kong stocks head for weekly gain on earnings optimism - SCMP

Hong Kong stocks head for weekly gain on earnings optimism - SCMP

Hong Kong stocks are experiencing a significant uptick, with the Hang Seng Index rising by 1.1% to 24,148.07 and the Hang Seng China Enterprises Index climbing 1.2% to 8,708.66. This surge is primarily driven by optimism surrounding potential easing of US trade policies and positive outcomes from previous US-China dialogues [1].

The tech sector has been particularly robust, with leaders such as Baidu, Xiaomi, and Kuaishou Technology leading the gains. Baidu saw a 4% increase, Xiaomi a 2% rise, and Kuaishou Technology a 5% jump. Investors are optimistic that the US may ease trade negotiations following the delayed tariffs on Japan and South Korea, which could lead to a relaxation of tech restrictions [1].

The broader market sentiment is also buoyed by the delayed tariffs on Asian allies, suggesting a potential softening in trade policies. Upcoming talks between US and Chinese officials raise expectations of solutions that could ease tensions and positively influence global markets [1].

Additionally, Hong Kong has reclaimed its place as a global IPO hub, with 42 mostly mainland companies raising US$13.5 billion on the Hong Kong stock exchange in the first half of 2025. This resurgence is attributed to supportive policies and a rerating of the city’s capital market, which has helped buoy valuations and attract global investment [2].

In contrast, China Hongbao Holdings reported a significant financial setback, with revenue down 17% and a net loss widening by 30% in 2025. The company’s share price remains broadly unchanged from a week ago [3].

The fast-fashion retailer Shein has also taken steps to expedite its listing process by filing for an IPO in Hong Kong, aiming to pressure the UK’s Financial Conduct Authority to approve its planned London debut [4].

References:
[1] https://finimize.com/content/hong-kong-stocks-climb-as-us-trade-easing-hopes-rise
[2] https://www.scmp.com/opinion/comment/article/3317506/fwds-ipo-journey-charts-fall-and-rise-hong-kong-market
[3] https://simplywall.st/stocks/hk/capital-goods/hkg-8316/china-hongbao-holdings-shares/news/china-hongbao-holdings-full-year-2025-earnings-hk0011-loss-p-1
[4] https://brandequity.economictimes.indiatimes.com/amp/news/business-of-brands/shein-files-for-hong-kong-ipo-to-save-london-listing-ft-reports/122336500