Hong Kong stocks advanced for a second consecutive day, driven by optimism about China’s support for the city’s financial market. This has reinforced its position as a key financial hub. The Hang Seng Index gained 0.4 per cent, closing at 19,663.67, following Monday’s 0.8 per cent increase. The Hang Seng Tech Index rose by 1.2 per cent, while mainland benchmarks like the CSI 300 and Shanghai Composite Index both increased by 0.7 per cent.
Strong performances from several sectors highlighted the day. Trip.com Group, the Chinese online travel agency, surged after exceeding quarterly earnings expectations. Zijin Mining Group also gained, buoyed by Goldman Sachs’ prediction that gold prices could surpass US$3,000 per ounce next year. However, smartphone maker Xiaomi saw a decline, with investors taking profits after its recent positive earnings report, although the company has posted an impressive 80 per cent rise this year.
Chinese regulators signalled additional financial integration measures, with potential plans to include commodity trading in Hong Kong’s connect programme. This scheme already provides overseas investors access to yuan-denominated assets, and further cross-border investment opportunities are expected. The announcements came during a financial summit in Hong Kong, attended by more than 300 industry leaders. Vice-Premier He Lifeng pledged increased support for Hong Kong’s markets, including enabling more Chinese companies to list in the city, improving market access, and issuing treasury bonds.
Despite these developments, analysts remain cautious. While policy announcements have supported the market’s rebound, broader uncertainties around China’s economic environment and global trade tensions persist. Some scepticism about sustainable growth has emerged, particularly in light of slower fiscal support and concerns about potential trade conflicts under Donald Trump’s political comeback.
Specific stocks experienced notable moves. Trip.com Group rallied by 5.8 per cent after reporting a 16 per cent revenue increase in its third quarter, surpassing expectations. Zijin Mining climbed by 4.7 per cent, driven by gold’s strong performance and bullish forecasts. Meanwhile, Xiaomi slipped 1.7 per cent, retreating slightly after its remarkable 85 per cent year-to-date gains.
The rally extended to broader Asian markets, where indices like Japan’s Nikkei 225, South Korea’s Kospi, and Australia’s S&P/ASX 200 posted gains, buoyed by a positive performance in US stocks overnight.
Hong Kong’s stock market has shown resilience amid supportive policy signals and key sector gains, although challenges remain. With China’s commitment to bolstering financial connectivity and optimism surrounding commodity trades, the city continues to strengthen its role as a global financial hub. However, cautious optimism remains necessary as global and domestic uncertainties loom.
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