The three major Hong Kong stock indices collectively advanced. At market close, the Hang Seng Index rose 0.48% to 25,797.85, the Hang Seng Tech Index increased 0.26%, and the HSCEI climbed 0.49%. In terms of sector performance, technology stocks broadly gained. Bilibili surged over 3%, TENCENT rose more than 2%, while Baidu, NetEase, Alibaba, and Meituan all increased over 1%. Oil stocks were active in the afternoon session, with CNOOC gaining over 2%. Mainland banking stocks led the gains, with Industrial and Commercial Bank of China rising over 1%. Conversely, gold stocks generally declined, with Zijin Mining International falling more than 3%.
Oil stocks were active in the afternoon, with CNOOC rising over 2%. The head of commodities and derivatives research at Bank of America warned that the global oil market is currently facing a "significant supply gap," with a daily shortage of 14 to 15 million barrels, equivalent to a demand deficit of 14% to 15%. He stated that oil prices are unlikely to retreat to the $60-$70 per barrel range until this gap is filled.
Mainland banking stocks led the gains, with Industrial and Commercial Bank of China rising over 1%. Recent gains in Hong Kong-listed mainland bank stocks are supported by multiple positive factors, including a potential stabilization and expansion of net interest margins, sustained inflows from southbound capital, broad institutional optimism, and the prominence of their high-dividend defensive attributes. Recently, China Construction Bank, Industrial and Commercial Bank of China, and Bank of China have all seen consistent large net purchases from northbound capital. A Goldman Sachs derivatives report also noted strong interest from northbound funds in mainland bank stocks, with significant inflows into related call warrants. Several institutional research reports point out that the banking sector's operating environment has shown marginal improvement, with significant improvements in revenue and net profit growth in the first quarter of 2026. Net interest margins have ended a prolonged downtrend, showing signs of stabilization and recovery.
Gold stocks broadly declined, with Zijin Mining International falling more than 3%. CITIC Futures noted that negotiations on the Strait of Hormuz navigation remain without substantive breakthroughs. Coupled with the U.S.'s firm stance toward Iran and security-related disturbances in the Middle East, the center of energy prices is unlikely to decline significantly in the short term. The inflation-interest rate-U.S. dollar dynamic continues to be the core factor suppressing gold prices. The institution believes that, in the short term, gold remains constrained by both inflation/interest rate pressures and weakening physical demand, with prices likely to maintain a weak, high-volatility pattern. The Federal Reserve meeting minutes, changes in energy prices, and progress in U.S.-Iran talks are the core variables for the week.
