On October 25th, the Hong Kong Hang Seng Index opened higher and continued to climb throughout the day, ultimately rising over 290 points to a peak of 20,784.47. By the afternoon, however, the gains had decreased, and the index closed up 100.53 points, or 0.49%, at 20,590.15. The total trading volume reached HKD 161.26 billion.
Throughout the day, the three major indices experienced slight pullbacks in the afternoon. The Hang Seng Tech Index rose by 54.04 points, or 1.21%, closing at 4,538.03, while the China Enterprises Index increased by 26.12 points, or 0.35%, ending at 7,385.26.
Sector-wise, tech shares, automotive stocks, and lithium battery companies performed well, with solar energy stocks standing out. Notably, Flat Glass surged by 23.04%, GCL Technology jumped by 19.58%, and Xinyi Solar rose by 16.99%.
Despite the day’s gains, the Hang Seng Index has experienced a cumulative decline of 1.03% this week, marking three consecutive weeks of losses.
Yee Sang Chi, the Chief Strategist at First Shanghai Securities, noted that while Hong Kong stocks have been retreating for three weeks, the magnitude of the weekly adjustments is decreasing, indicating a gradual stabilization and a period of consolidation. He pointed out that the trading volume on the 25th remained above HKD 160 billion, continuing to exceed the year-to-date daily average of HKD 127.2 billion.
Looking ahead, Yee anticipates that the Hong Kong stock market will trend towards a “narrow range consolidation” phase, with a generally positive market sentiment expected to support the Hang Seng Index around the 20,000 mark.
