Hong Kong stocks open lower; Hang Seng Index down 0.04%, Hang Seng Tech Index down 0.26%.

Hong Kong stocks open lower; Hang Seng Index down 0.04%, Hang Seng Tech Index down 0.26%.

Hong Kong stocks opened lower on Thursday, July 2, 2025, with the Hang Seng Index (HSI) falling by 0.04% to 25,590.88, and the Hang Seng Tech Index (HSTI) declining by 0.26% to 5,745. The market's opening came after a mixed trading session on the mainland, where the Shanghai Composite Index (SSE) rose 0.01% to 3,582, and the Shenzhen Component Index (SZSE) closed 0.37% down at 11,059. The ChiNext Index, which tracks China's Nasdaq-style board of growth enterprises, lost 0.01% to close at 2,310 [3].

The Hang Seng Index, which includes 40 of the largest companies listed on the Hong Kong Stock Exchange, was influenced by a combination of factors including global market sentiment and local economic indicators. The Hang Seng China Enterprises Index (HSCEI) gained 24% this year, driven by mainland investors' hunt for quality assets and global funds' diversification needs [2]. However, recent market adjustments have led to a technical bear market for the Hang Seng Tech Index, which has fallen more than 20% from its high in October [4].

The strong inflow of mainland investors, which has been a significant factor driving the Hong Kong stock market's performance, may continue to support the market. Data shows that southbound net inflows expanded by another HK$2.7 billion ($344 million) on Tuesday, taking this year’s total to HK$800 billion, a whisker away from 2024’s previous record of HK$808 billion [2]. Despite the recent market adjustments, leading companies in the Hang Seng Index have shown steady growth, providing a good fundamental outlook for the market.

Looking ahead, the Hong Kong stock market is expected to continue to be influenced by global trade developments and local economic indicators. The Commerce Ministry in Beijing announced that Vice Premier He Lifeng would visit Sweden from July 27-30 to hold economic and trade talks with US officials, which could have implications for the market [3]. Additionally, the global forecast for the Asian markets is upbeat on optimism for trade deals, which may continue to support the Hong Kong stock market.

References:

[1] https://finance.yahoo.com/quote/%5EHSI/
[2] https://www.bloomberg.com/news/articles/2025-07-22/chinese-investors-snap-up-hong-kong-stocks-as-flows-near-record
[3] https://gbcode.rthk.hk/TuniS/news.rthk.hk/rthk/en/component/k2/1814801-20250723.htm?share=twitter
[4] https://www.moomoo.com/news/post/67410420/record-tr4cking-news-us-morning-news-call-us-and-japan-reach-massive-trade