12th July 2024 – (Hong Kong) The Hang Seng Index witnessed a significant upturn, opening up by 187 points at 18,020 and stretching gains to a peak of 18,226 points before settling at a 2.02% increase, which translates to 360 points, ending at 18,193. The surge in the index is reflective of a broader confidence sweeping through Asian markets, particularly in the technology and real estate sectors.
The buoyancy in the marketplace was underpinned by substantial trading volumes with HK$33.7 billion changing hands on the main board, indicating a high level of investor engagement and optimism.
Technology stocks were at the forefront of the rally. Notable gains were observed in major tech firms, with Tencent Holdings Ltd. up by 1.7%, Alibaba Group Holding Ltd. advancing by 2.5%, and Meituan increasing by 3.8%. JD.com Inc. led the pack with a striking 5.1% climb, while Xiaomi Corp. saw a modest rise of 0.4% and Kuaishou Technology appreciated by 2.9%.
The financial sector also contributed to the market’s strength, with HSBC Holdings plc rising by 0.5% and Hong Kong Exchanges and Clearing Ltd. soaring by 2.3%. AIA Group Ltd. and Ping An Insurance Group Co. of China Ltd. also performed well, up by 1.5% and 2.6% respectively.
A significant driver of today’s momentum was the market’s anticipation of potential interest rate cuts by the U.S. Federal Reserve, sparking a notable rally in the local real estate stocks. Sun Hung Kai Properties Ltd. jumped by 5.4%, Henderson Land Development Co. Ltd. surged by 6.8%, and New World Development Co. Ltd. climbed by 5%.
In the property sector focused on the Chinese mainland, Longfor Group Holdings Ltd. saw a remarkable gain of 7.2%, Shimao Group Holdings Ltd. advanced by 7.6%, China Resources Land Ltd. rose by 5.2%, and China Overseas Land & Investment Ltd. increased by 5%.
Moreover, the performance of infrastructure companies looking to expand internationally was highlighted by Cheung Kong Infrastructure Holdings Ltd., which spiked by 6.4% following its plans for a second and additional listing overseas.
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