Hong Kong stocks rebounded at midday today after the Hang Seng Index dropped 239 points and fell below the 25,000 level the previous day. The index rose 334 points or 1.34% to close the morning session at 25,227, driven by a recovery in major technology stocks including Tencent. The rally pushed the benchmark above both the 25,000 threshold and its 100-day moving average, currently at 25,221. Tech giants led the rebound after yesterday's sharp losses, with Tencent climbing 2% following a 7% decline the previous session.
The Hang Seng opened 73 points higher at 24,966 before briefly dipping 15 points to 24,876, then surging as much as 362 points to an intraday high of 25,255. The Hang Seng China Enterprises Index gained 109 points or 1.32% to 8,360, while the Hang Seng Tech Index added 37 points or 0.79% to 4,705. Midday turnover reached HK$129.548 billion, with northbound capital recording a net outflow of HK$1.618 billion.
Technology Stocks Lead Market Recovery
Tech stocks broadly advanced during the morning session. Tencent (00700) rebounded 2% to HK$449.4 after yesterday's 7% drop. Kuaishou (01024) rose 1.3% to HK$43.24, while Alibaba (09988) gained 0.8% to HK$114.5. Meituan (03690) surged 5% to HK$87.85, Baidu (09888) climbed 2.1% to HK$106.6, and Xiaomi (01810) advanced 1.5% to HK$27.08. NetEase (09999), which fell sharply yesterday, declined another 1% to HK$191.1.
Top and Bottom Performers in Morning Trading
China Aluminum (02600) jumped 7% to HK$8.69, while China Hongqiao (01378) rose 5.2% to HK$24.36, marking the two best-performing blue chips at midday. Sands China (01928) gained 4.4% to HK$13.78, HSBC (00005) advanced 1.8% to HK$161.8, Lenovo (00992) climbed 3.4% to HK$24.92, and Hong Kong Exchanges and Clearing (00388) rose 1.6% to HK$407.
SMIC (00981) initially rose before reversing to a 3.4% decline at HK$70.4. China Biologic (01177) fell 2.2% to HK$5.23, and Nongfu Spring (09633) dropped 4.8% to HK$40.84, making it the worst-performing blue chip at midday.
Optical Communication Sector Gains After Innolight IPO Launch
Optical communication stocks moved higher as China's leading optical transceiver manufacturer Innolight (03308) began its IPO subscription yesterday. Cambridge Technology (06166) rose 2.9% to HK$87.1, Yangtze Optical Fibre and Cable (06869) edged up 0.1% to HK$127.5, and Hongten Technology (06088) advanced 1.6% to HK$5.56.
ZTE Falls on US Equipment Sales Ban
ZTE (00763) declined 1.8% to HK$25.14 after the United States prohibited sales of key hardware equipment from Chinese companies including Huawei and ZTE on national security grounds.
Horizon Robotics (09660) fell 3.8% to HK$4.57 after issuing US$450 million in zero-coupon convertible bonds. Ucommune International (02431) plunged 13.9% to HK$6.31 following a share placement at a 15% discount to raise capital.
FAQ
How much did the Hang Seng Index rise at midday today?
The Hang Seng Index rose 334 points or 1.34% to close the morning session at 25,227, after opening 73 points higher at 24,966 and reaching an intraday high of 25,255.
Which blue-chip stocks were the top performers in morning trading?
China Aluminum was the best-performing blue chip with a 7% gain to HK$8.69, followed by China Hongqiao which rose 5.2% to HK$24.36. Sands China gained 4.4% to HK$13.78.
Why did ZTE shares decline during the session?
ZTE dropped 1.8% to HK$25.14 after the United States banned sales of key hardware equipment from Chinese companies including Huawei and ZTE, citing national security concerns.
