Hong Kong stocks extended their winning streak to a seventh consecutive session on Friday, marking the longest rally in over a year, as investor sentiment improved amid speculation that the United States may reduce tariffs on Chinese exports. The Hang Seng Index rose 0.4 per cent to close at 22,867.74, bringing its weekly gain to 1.6 per cent. However, the Hang Seng Tech Index slipped 0.9 per cent, reflecting continued volatility in the technology sector.
On the mainland, market performance was subdued with the CSI 300 Index dipping 0.2 per cent and the Shanghai Composite Index falling 0.3 per cent.
Among the top gainers in Hong Kong, Sun Hung Kai Properties surged 5 per cent to HK$80.15, and Chow Tai Fook Jewellery added 3.8 per cent to HK$10.88. Conversely, Semiconductor Manufacturing International fell 4.8 per cent to HK$43.00, despite posting a 28 per cent year-on-year revenue increase for the first quarter. China Resources Land, a state-owned property developer, declined 2.9 per cent to HK$25.50.
According to analysts, investors were engaging in profit-taking after several days of gains, while adopting a cautious stance ahead of trade talks between Chinese Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent, scheduled for this weekend in Switzerland. US President Trump expressed optimism, stating he expected the negotiations to be “substantive.”
Reports suggest the US is aiming to lower its tariffs on Chinese goods from 145 per cent to below 60 per cent as an initial step, with hopes that China may reciprocate. However, the outcome remains uncertain, and the situation is still evolving.
Beijing has also announced new economic support measures this week, aiming to restore confidence in the private sector and mitigate the impact of tariffs. Meanwhile, Bloomberg reported that Chinese authorities are considering a significant shift in housing policy by requiring developers to sell only completed homes rather than relying on presales—a change that could worsen liquidity issues in the already strained property sector.
Despite this, April’s real estate performance, though weak, showed slight improvement compared to April 2024. Mainland investors sold HK$2.4 billion worth of Hong Kong stocks via the southbound Stock Connect channel on Thursday.
Across the broader Asia-Pacific region, Japan’s Nikkei 225 gained 1.6 per cent, South Korea’s Kospi Index edged lower, and Australia’s S&P/ASX advanced 0.5 per cent.
READ MORE: