Hong Kong Market Close: HSI Soars 432 Points to Reclaim 26,000, Driven by Policy and Earnings Synergy, Property, Insurance, and Auto Sectors All Strengthen

Boosted by multiple positive factors, Hong Kong stocks staged a strong rebound today. The Hang Seng Index opened 162 points higher and continued to climb, buoyed by both policy signals from the Central Politburo meeting and better-than-expected corporate quarterly reports. The gains expanded to over 453 points in the afternoon, and the index closed near the day's high at 26,111, surging 432 points or 1.68%, marking the largest single-day gain in nearly three weeks. The H-shares index also performed well, rising 160 points or 1.86% to 8,805; the Hang Seng Tech Index gained 82 points or 1.72% to close at 4,910, reclaiming the 4,900-point mark. The market's total turnover for the day was approximately HK$258.2 billion, indicating sustained activity.

The insurance and auto sectors also delivered impressive results. China Life Insurance and China Pacific Insurance recorded gains of 3% to 5%, with the domestic insurance sector showing overall strength. Among auto stocks, Nio -SW's Ledo brand announced pre-sale prices, coupled with a boost in consumer sentiment from the Beijing Auto Show, driving its share price up nearly 9%, leading the gains among Hang Seng Tech Index constituents. BYD shares rose over 4% after its earnings report. Although Geely Automobile's first-quarter net profit fell year-on-year, its core attributable net profit surged 31%, and its share price jumped over 5% in the afternoon.

Tech and internet stocks generally recovered. Meituan, Alibaba, and Bilibili all rose over 3%, Tencent Holdings gained about 1.1%, and JD Group rose nearly 2%. However, the rebound in large-cap tech and internet stocks was relatively modest, indicating continued caution among funds in a high-valuation environment. Baidu fell about 2.8% against the market trend due to reports that China has suspended new autonomous driving permits, making it one of the few declining constituents in the Hang Seng Tech Index.

In contrast to the overall strength, the semiconductor sector faced heavy pressure. According to foreign media reports, the U.S. Commerce Department has instructed several chip equipment companies to suspend supplying specific equipment to Hua Hong Semiconductor, heightening market concerns about escalating U.S.-China tech competition. Hua Hong Semiconductor plunged over 9% at one point, eventually closing down about 4.6%. SMIC and Montage Technology also followed the downward trend.

Earnings-related stocks showed mixed performances. Hong Kong Exchanges and Clearing's first-quarter profit grew 27% to a record high, driving its share price up about 3% to HK$419.8, providing important support for the financial sector. WH Group tumbled nearly 6% after its earnings report, and China Merchants Bank fell over 4%, ranking as the top two decliners among blue-chips. The IPO market saw renewed frenzy, with Sunmi Technology -W soaring over 241% on its first trading day, with its public offering oversubscribed by 2,003 times, reflecting intense market interest in new economy concepts.

In terms of capital flows, northbound capital recorded a net outflow of approximately HK$3.952 billion today, ending the previous streak of inflows. The Shanghai-Hong Kong Stock Connect (Southbound) saw a net inflow of HK$1.2 billion, while the Shenzhen-Hong Kong Stock Connect (Southbound) recorded a net outflow of about HK$5.153 billion, indicating some profit-taking by Shenzhen-based funds at the rebound highs.

Technically, the HSI broke through both its 20-day and 50-day moving averages today and is now consolidating near its 100-day moving average. Looking ahead, market focus will center on the upcoming Federal Reserve interest rate decision and capital flows around the May Day holiday, while also needing to watch for short-term volatility stemming from U.S.-China relations and geopolitical developments.$Hang Seng Index(00HSI.HK) $Hang Seng TECH Index(STECH.HK) $Hang Seng China Enterprises Index(HSCEI.HK)