Hong Kong's Hang Seng Index Rallies for Third Day, Reclaims 18,000 Mark Led by Tech Stocks

Hong Kong stocks continued their rebound today, with the Hang Seng Index closing higher for a third consecutive session and reclaiming the 18,000-point integer mark. Market turnover expanded notably compared with the previous sessions, with the technology sector leading the gains. Heavyweights such as Tencent Holdings and Alibaba saw active inflows, signaling a recovery in market sentiment.

Hang Seng Reclaims 18,000; Turnover Surges

The Hang Seng Index opened higher and advanced throughout the day, briefly pushing above the 18,000 level before closing above it, marking a three-day winning streak. Market data shows that main board turnover rose about 20% from the previous day, indicating a significant uptick in participation. Analysts noted that valuations have become attractive after the recent pullback, and with improving global sentiment, the index has found a footing and is rebounding.

Tech Stocks Lead Gains; Tencent and Alibaba Attract Inflows

The technology sector outperformed today, with the Hang Seng Tech Index posting the largest gains. Leading stocks such as Tencent and Alibaba recorded substantial advances. Fund flow data shows that southbound capital saw a notable expansion in net inflows, with tech stocks being the primary net buyers. Market participants believe that the sector's earlier steep declines have left valuations at historical lows, and with gradual improvements in fundamentals, funds are moving in to buy on dips.

Sentiment Improves on Multiple Factors

The rebound is supported by a confluence of factors. First, the Federal Reserve has recently signaled a dovish stance, easing concerns about liquidity tightening. Second, domestic economic data is showing marginal improvement, with policymakers continuing to signal growth-supportive measures. Additionally, Hong Kong equities remain undervalued globally, with attractive dividend yields, boosting long-term allocation demand.

However, some analysts caution that the short-term rebound could be constrained by geopolitical risks and recurring global inflation. Investors should watch whether turnover can sustain. Overall, sentiment is shifting from pessimism to cautious optimism, and if turnover remains elevated, the rally could extend.

Outlook: Focus on Turnover and Policy Catalysts

Looking ahead, whether the Hang Seng can hold above 18,000 and push higher depends on sustained turnover and further policy catalysts. As a market bellwether, the tech sector's performance will directly influence the index. Investors are advised to closely monitor fund flows into leaders like Tencent and Alibaba, as well as upcoming economic data that could guide sentiment.