Hang Seng Index Rallies for Third Day, Reclaims 18,000 as Tech Giants Lead Hong Kong Stocks Higher

The Hong Kong stock market has shown a strong rebound recently, with the Hang Seng Index closing higher for three consecutive trading days and successfully reclaiming the 18,000-point mark (commonly known as the '18k' level). This rally was led by heavyweight tech stocks, with internet giants such as Tencent Holdings and Alibaba contributing significantly to the index, and clear signs of capital returning.

Hang Seng Rises for Third Day, Reclaims 18,000

After an earlier correction, the Hang Seng Index entered a rebound mode this week, closing with three consecutive positive sessions and posting notable cumulative gains. Market data shows that after breaking above 18,000, market sentiment has improved markedly, with trading volume expanding compared to previous sessions. Analysts attribute the rebound to a confluence of factors, including stabilization in overseas markets, improved expectations for mainland policy, and valuation repairs in the tech sector.

From a technical perspective, after reclaiming the 18,000 level, the short-term moving averages have formed a bullish alignment, and the MACD indicator has flashed a golden cross signal, indicating clear technical buying. However, some institutions caution that after consecutive gains, the index may face profit-taking pressure, and investors should watch whether volume can continue to support the advance.

Tech Giants Lead Gains; Tencent and Alibaba Top Contributors

In this rebound, the tech sector has been the absolute main driver. Large-cap tech stocks such as Tencent Holdings and Alibaba have led gains, together contributing over 60% of the Hang Seng's rise. According to market statistics, Tencent has posted significant cumulative gains over the three-day rebound, with daily turnover exceeding HK$10 billion multiple times. Alibaba has also shown strength, with its cloud computing and international commerce segments attracting capital due to valuation repair.

In terms of capital flows, southbound funds have recorded net inflows into the Hong Kong market for several consecutive days, with tech stocks being a key target for increased positions. According to data from the Hong Kong Stock Exchange, southbound funds have notably increased net purchases of Tencent, Alibaba, and other targets through the Stock Connect. Additionally, international capital is showing signs of returning, with some active foreign funds beginning to increase allocations to Chinese tech assets, based on expectations of normalized industry regulation and improving corporate earnings.

Rebound Momentum and Risk Factors Coexist

Despite strong short-term rebound momentum, the market still faces multiple uncertainties. On one hand, the global macroeconomic environment is complex, with the Fed's monetary policy path still unclear, and fluctuating rate expectations could disrupt Hong Kong stock valuations. On the other hand, geopolitical risks and intensifying industry competition may also impact tech earnings prospects.

Nevertheless, most institutions hold a cautiously optimistic view on the medium-term outlook for Hong Kong stocks. Some analysts point out that the current Hang Seng price-to-earnings ratio remains at historical mid-to-low levels, and the tech sector trades at a discount compared to US stocks. As corporate earnings gradually recover, valuations are expected to rise further. In addition, the mainland's steady growth policies continue to strengthen, and themes such as consumption recovery and technological innovation may provide structural opportunities for Hong Kong stocks.

Outlook: Focus on Volume and Policy Signals

Looking ahead, investors should closely monitor two signals: first, whether trading volume can remain elevated, as sustained volume would support the continuation of the rebound; second, policy developments, including the implementation of mainland economic stimulus measures and industry regulation details. In the short term, the Hang Seng may need to consolidate above the 18,000 level, but the medium-term uptrend remains intact.

Overall, Hong Kong stocks have reclaimed the 18,000 level led by tech heavyweights, and market confidence has been somewhat restored. However, investors should remain rational, pay attention to global liquidity changes and corporate fundamental verification, and flexibly adjust position allocations.