Hang Seng Index Rises 1.2% to Reclaim 24,000 as Tech Stocks Lead; Tencent and Alibaba Surge

Hong Kong stocks showed strong performance on Thursday, with the Hang Seng Index rising about 1.2% in the morning session to reclaim the 24,000-point mark for the first time in nearly a month. Market sentiment improved notably, with the technology sector leading the gains as heavyweight stocks like Tencent Holdings and Alibaba Group rallied, driving the broader market upward.

Hang Seng Reclaims 24,000; Tech Stocks Surge

At the midday close, the Hang Seng Index stood near 24,050 points, up about 280 points from the previous close. The H-share Index and the Hang Seng Tech Index also advanced, with the tech index gaining nearly 2%, significantly outperforming the broader market. On the trading floor, large-cap tech stocks generally posted solid gains: Tencent rose over 2% during the session, Alibaba gained more than 1.5%, and Meituan, JD.com, and NetEase followed suit. Additionally, semiconductor and consumer electronics-related sectors were active, further boosting market sentiment.

Analysts attribute the tech-led rally to multiple factors. On one hand, strong performance of U.S. tech stocks overnight, with the Nasdaq closing higher, provided external support for Hong Kong's tech sector. On the other hand, recent policies from mainland China supporting the regulated and healthy development of platform economies have strengthened expectations of a stabilizing regulatory environment, prompting capital to flow back into the sector.

Fund Flows Improve; Southbound Capital Continues to Inflow

In terms of fund flows, southbound capital recorded net inflows today. As of midday, the combined net buying via the Shanghai and Shenzhen Stock Connect totaled approximately HK$6 billion, with tech stocks being a major target. Market sources indicate that mainland public funds and insurance capital have increased their allocation to Hong Kong tech leaders, with some institutions believing current valuations offer medium-to-long-term attractiveness.

Moreover, the Hong Kong dollar has strengthened recently, reflecting signs of international capital inflows. Data from the Hong Kong Monetary Authority shows that the aggregate balance of the banking system remains at a high level, providing ample liquidity to support the market rebound. A strategist at a brokerage said that if the external environment remains stable, the Hang Seng Index may challenge the resistance level near 24,500 points in the short term.

Tech Valuation Recovery; Focus on Earnings and Policy Signals

From a valuation perspective, the Hang Seng Tech Index's current price-to-earnings ratio remains at historically low levels, well below the peak in 2021. With corporate earnings gradually improving and the regulatory framework becoming clearer, the valuation recovery in the tech sector may be sustainable. The upcoming quarterly earnings reports from Tencent and Alibaba will be a key focus for the market; if results beat expectations, they could further boost sector sentiment.

However, some analysts caution that short-term market volatility persists, and investors should monitor the U.S. Federal Reserve's monetary policy path, geopolitical tensions, and the pace of mainland China's economic recovery. They advise investors to remain rational, focus on fundamentally strong leaders, and avoid chasing highs.

Outlook: Structural Opportunities Dominate

Looking ahead, most institutions expect Hong Kong stocks to exhibit structural trends, with rotation opportunities in sectors such as technology, consumption, and new energy. After the Hang Seng reclaimed the 24,000 level, market confidence has strengthened, but whether it can hold will depend on volume confirmation. In the afternoon session, the market's direction and tech stock performance will serve as key indicators.