At open, Hang Seng Index up 0.6%, Hang Seng Tech Index up 0.69%

At open, Hang Seng Index up 0.6%, Hang Seng Tech Index up 0.69%

The Hang Seng Index (HSI) opened up 0.6% at 24,995.43 on July 2, 2025, while the Hang Seng Tech Index (HSTI) rose 0.69% to 5,611.63 points. The market's optimism was driven by several positive factors, including robust earnings reports from leading tech companies and expectations of favorable US-China trade progress.

The Hang Seng Index's performance was buoyed by strong earnings from Chinese chipmaker SMIC and a broader tech sector retreat. Despite these gains, investor caution remains elevated ahead of China's July inflation and producer price data, which are crucial for assessing deflation risks [1]. However, hopes for US-China trade progress and Beijing stimulus are expected to lift the HSI toward 25,736 or even 26,000 [1].

The Hang Seng Tech Index's rise was attributed to several positive factors, including strong fundamentals of leading tech companies and robust inflows of capital from the Southbound Hong Kong Stock Connect. On July 2, 2025, the HSTI rose 3% to 5,602.69 points, marking a significant rebound from recent market fluctuations. Several leading tech companies reported strong financial performance, with Tencent's third-quarter 2024 revenue increasing by 8% year-on-year, and JD.com's revenue growing by 5.1% year-on-year [2].

Despite the recent market adjustments, the Hang Seng Tech Index has shown resilience, with the index re-entering a "technical bear market" on November 14, 2024, but quickly rebounding. The index has since maintained a steady performance, benefiting from the continued inflow of capital from the Southbound Stock Connect. On November 14, 2024, there was a net inflow of 19.656 billion Hong Kong dollars, the second-largest single-day net buying amount this year [2].

The Hang Seng Index's performance reflects a resilient market driven by the robust performance of leading tech companies and the continued inflow of capital from the Southbound Stock Connect. Historical data from 2022 to the present reveals that HSTI stocks with earnings beats have a 16.67% win rate over three days, a 33.33% win rate over 10 days, and a 33.33% win rate over 30 days. However, the average 30-day return is -1.77%, indicating that while short-term gains are possible, long-term volatility remains a risk [2].



In conclusion, the Hang Seng Index and Hang Seng Tech Index's performance on July 2, 2025, was driven by positive market sentiment and strong earnings reports from leading tech companies. Investors remain cautious ahead of key economic data releases but are optimistic about the prospects of US-China trade progress and Beijing stimulus.

References:
[1] https://www.fxempire.com/forecasts/article/hang-seng-index-news-tech-sell-off-and-deflation-fears-stall-rally-below-25000-1539790
[2] https://www.ainvest.com/news/hang-seng-tech-index-rises-3-5-602-69-points-2508/