Hong Kong's stock market experienced a volatile session today, with the Hang Seng Index managing a stubborn late-session gain while the Hang Seng Tech Index declined. The Hang Seng Index closed at 25,858.88 points, up 50.96 points, or 0.20%, while the Hang Seng Tech Index ended at 4,803.77 points, down 60.96 points, or 1.25%.
Market focus centered on banking stocks, which single-handedly propped up the Hang Seng Index. All five major Chinese state-owned banks, including Agricultural Bank of China Ltd (HK: 01288), Industrial and Commercial Bank of China Ltd (HK: 01398), China Construction Bank Corp (HK: 00939), Bank of Communications Co Ltd (HK: 03328), and Bank of China Ltd (HK: 03988), hit new all-time highs in their Hong Kong-listed shares today. Agricultural Bank of China rose over 3%, Industrial and Commercial Bank of China gained more than 2%, and China Construction Bank, Bank of Communications, and Bank of China each climbed over 1%.
A July 29 research report from CICC forecasts that revenue and attributable net profit for the banks it covers will grow 6% and 4% year-on-year, respectively, in the second quarter of 2026. This would mark a slight deceleration in revenue growth from the first quarter, mainly due to uncertainties in other non-interest income. Looking ahead to the third quarter, CICC expects the banks' interim results to continue their improving trend. Additionally, a previous report from BofA Securities indicated that the average net profit growth expectation for mainland Chinese banks' H-shares in the first half improved to 1.7% year-on-year, up from 1.1% in the first quarter. UBS also predicted that Agricultural Bank of China, Industrial and Commercial Bank of China, and Bank of Communications would report relatively strong second-quarter performances, benefiting from stable net interest margins and accelerating net interest income growth.
Newly listed company Qiyunshan Food Co Ltd (HK: 02797) experienced a dramatic swing today, initially surging as much as 83% before closing with a gain of just 12.5% at HK$67.50. Qiyunshan Food, which listed on the Hong Kong Stock Exchange on July 9 at a price of HK$8 per share, had been on a rising trend since its debut. According to its prospectus, Qiyunshan Food is a fruit-based snack company primarily selling products made from the southern wild jujube. Based on data from CIConsulting, it held a 29.0% share of China's southern wild jujube food market by retail sales in 2025, ranking first in the industry.
Education stocks were among the top gainers, with New Oriental Education & Technology Group Inc (HK: 09901) surging over 18%. On the news front, New Oriental reported its fourth-quarter results for the period ending May 31, 2026. Net revenue rose 23.0% year-on-year to US$1.5295 billion, operating profit surged 1,089.1% to US$85.8 million, and net profit attributable to shareholders jumped 775.8% to US$62.18 million.
In other sectors, technology stocks showed mixed performance. Lenovo Group Ltd (HK: 00992) fell over 5%, Xiaomi Corp (HK: 01810) dropped more than 2%, and Alibaba Group Holding Ltd (HK: 09988) declined over 1%. Conversely, Tencent Holdings Ltd (HK: 00700), JD.com Inc (HK: 09618), NetEase Inc (HK: 09999), and Bilibili Inc (HK: 09626) each gained over 1%. Chip stocks were among the biggest losers, with Hua Hong Semiconductor Ltd (HK: 01347) falling over 8%. The optical communications sector also weakened, with Yangtze Optical Fibre and Cable Joint Stock Ltd Co (HK: 06869) dropping over 10%. Zhongji Innolight Co Ltd (HK: 300308) fell over 2% on its debut day.
In terms of capital flows, southbound capital net sold over HK$8.5 billion worth of Hong Kong stocks today.
Looking ahead, Guotai Junan Securities believes that improving micro-level liquidity in Hong Kong stocks is refocusing the market on the investment value of the Hang Seng Index. It suggests that the next phase requires waiting for interim reports from Hong Kong-listed companies in mid-August to verify fundamental conditions. If the profit expectations for heavyweight internet companies reach an inflection point, the Hong Kong tech sector could shift from being driven by odds to being driven by conviction.
Disclaimer: This article and its data are for reference only and do not constitute investment advice. Please verify before use. Any actions based on this information are at your own risk.
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