Hong Kong’s stock market surged above 25,000 points at the close of morning trading on Wednesday, driven by an optimistic market outlook for the profits of technology enterprises.
The equity market benchmark, Hang Seng Index, closed 1.88 percent higher at 25,439 points on a turnover of HK$143.8 billion ($18.43 billion).
The Hang Seng China Enterprises Index -- a barometer of Chinese mainland companies -- edged up 1.86 percent to finish at 9,082 points, while the city’s technology stock gauge, the Hang Seng TECH Index, picked up 2.35 percent to close at 5,566 points.
ALSO READ: Hong Kong stocks market capitalization surges 33% in H1
Tencent Music Entertainment Group surged 15.1 percent after the company posted a more than 37-percent hike in adjusted net profit for the second quarter.
China Literature Group skyrocketed 18.7 percent, with its share price hitting a new high since July 2023, with the company saying its interim profit attributable to shareholders has skyrocketed 68.5 percent annually.
Tencent Holdings rose 3.1 percent, while Alibaba Group Holding soared 4.3 percent. JD.com hiked more than 2.8 percent after the e-commerce player said it would not be involved in cut-throat price competition.
Mobile device stocks and pharmaceutical-related stocks also rose while Macao gaming, Chinese financial and some car manufacturer stocks saw laggard performance.
“Global tariff negotiations have made multiple key breakthroughs, sustaining an optimistic tone in world stock markets. As tariff uncertainties fade, markets are expected to refocus on fundamentals, and members should monitor long-term economic indicators,” said Michael Chan, managing director at Hong Kong-based mandatory provident fund advisory firm GUM.
READ MORE: Hong Kong equity market revives on policy, improved outlook
James Wang, UBS head of China equity strategy research, said the asset manager prefer internet and technology stocks coupled with high dividend companies.
“We also see value in Hong Kong-listed small cap stocks as a potential convergence play with some pickup in interest from southbound investors in recent months, and the significant outperformance of A-share small caps versus their Hong Kong peers in the last five years,” he said.
