Post by : Jyoti Gupta

Photo:Reuters

Hong Kong stocks rose on Wednesday from a one-week low, driven by renewed buying from mainland investors who are optimistic about Beijing’s plans to support high-quality growth and regulate excessive price competition in certain industries.

The Hang Seng Index climbed 0.6% to 24,220.65 at the midday trading break, rebounding from Monday’s levels. Markets were shut on Tuesday due to a public holiday. However, the Hang Seng Tech Index slipped 0.3%, reflecting mixed sentiment in the technology sector. On the mainland, the Shanghai Composite Index edged down 0.1%, while the CSI 300 Index added 0.1%.

Casino and consumer stocks led the rally. Galaxy Entertainment surged 6.5% to HK$37.10, and Sands China rose 6.9% to HK$17.46. Geely Auto gained 2.1% to HK$16.30 after raising its sales forecast, while Baidu added 1% and Xinyi Solar soared 6.8% on strong sectoral demand.

Investor confidence was buoyed by new data showing mainland buying of Hong Kong stocks reached HK$731.2 billion (US$93 billion) in the first half of 2025 — already 90% of last year’s total. Total southbound net purchases stood at a record HK$808 billion, the highest since the Stock Connect scheme launched in 2014.

Policy sentiment was lifted after a high-level meeting chaired by President Xi Jinping on Tuesday, where China reiterated its commitment to building a unified national market, curbing aggressive price wars, and encouraging product quality improvements across industries. The leadership also emphasized fair procurement practices in state spending.

Banking and property shares remained firm despite higher local borrowing costs driven by tightened banking liquidity. Sun Hung Kai Properties advanced 2.6% to HK$92.40, and China Construction Bank climbed 2.9% to HK$8.15.

To stabilise the local currency, the Hong Kong Monetary Authority (HKMA) intervened in the forex market by selling US$2.55 billion and purchasing Hong Kong dollars at the HK$7.85 level. This move will drain HK$20.02 billion from the local banking system on July 3.

Across the region, other major Asian markets were mostly lower. Japan’s Nikkei 225 slipped 0.2%, South Korea’s Kospi fell 0.8%, while Australia’s S&P/ASX 200 gained 0.8%.