Hong Kong's three major stock indices closed higher on April 1. The Hang Seng Index rose 2.04% to 25,294.03 points, while the Hang Seng Tech Index gained 2.29% and the Hang Seng China Enterprises Index advanced 1.56%.
Technology stocks led the gains, with Bilibili surging over 6%. Baidu, NetEase, and Lenovo each climbed more than 3%, while Alibaba, Tencent, and Kuaishou rose over 2%. Meituan bucked the trend, falling more than 1%.
Aviation stocks outperformed, with China Eastern Airlines soaring over 12%. Huayuan Securities noted that if passenger traffic and fare growth continue into the second quarter of 2026 and beyond, it could provide sufficient buffer against high fuel costs. Should factors driving elevated oil prices dissipate, airline earnings may demonstrate significant flexibility.
Innovative drug concept stocks rallied strongly, with Rongchang Biotechnology jumping over 15%. This follows the recent issuance of guidelines for accelerating the establishment of a long-term care insurance system, aiming to create a nationwide program within three years. Additionally, over 100 Chinese pharmaceutical firms are expected to present nearly 400 research findings at the upcoming American Association for Cancer Research annual meeting, covering cutting-edge technologies like nuclear medicine and cell therapy.
Chip stocks strengthened, with Montage Technology rising over 11%. This mirrored gains in U.S. memory chip stocks overnight, where SanDisk advanced nearly 11% and Micron Technology climbed about 5%. J.P. Morgan's Asia-Pacific semiconductor analysts noted that while short-term catalysts remain limited, mid-to-long-term valuations have become attractive—memory stocks currently trade at just 1.1 times projected 2027 book value.
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