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Hong Kong Stock Trends

Key Trends

Interest Rate Cut & Monetary Policy Loosening

The Hong Kong Monetary Authority (HKMA) cut its base rate by 25 basis points to 4.50%, following the U.S. Federal Reserve’s similar move.
Reuters

Because the Hong Kong dollar is pegged to the U.S. dollar, HK’s rates are heavily influenced by Fed policy.
Reuters

Stimulus Expectations Driven by Weak Economic Data

Several economic indicators (e.g. weak retail sales, slowing home price gains, softer consumer demand) in China have fallen short of expectations. This has raised hopes that Beijing will roll out further stimulus.

Investors are anticipating more fiscal & policy support for consumption, technology, and infrastructure sectors.

Strong Mainland / Stock Connect Capital Inflows

Chinese mainland investors have been putting more money into Hong Kong via the Stock Connect

These flows are helping drive valuations in sectors preferred by mainland investors: new consumption, healthcare, and finance.
Futubull

Technology / AI Momentum

The tech sector, especially firms involved in AI, cloud, and semiconductor/AI‐infrastructure, has been outperforming. There’s renewed enthusiasm for Chinese tech/AI names after certain breakthroughs (e.g. DeepSeek) and government signals of support.

The Hang Seng Tech index has been rising, contributing significantly to overall market strength.

Valuation Pressure / Sector Rotation

Some defensive sectors (e.g. real estate, financials) have been under pressure, particularly when interest rates or Hibor (Hong Kong interbank) rates are expected to stay higher or rise due to monetary tightening or currency interventions.

There is rotation into growth / tech / AI and consumption‐related sectors, as investors seek upside, especially with rate cuts and stimulus on the radar.
South China Morning Post