The Hang Seng Index closed nearly unchanged at 22,616 on Monday, after an initial surge of almost 1.5% earlier in the session. Gains in property and financial stocks helped offset losses in the technology and consumer sectors, creating a mixed market sentiment.
Hang Seng ends flat as early gains fade
Traders took profits following a tech-driven rally, as investors remained cautious and awaited further policy signals from Chinese President Xi Jinping’s meeting with private enterprises, including major players such as Alibaba, Meituan, Xiaomi Corp, and BYD Co. This high-level dialogue sparked hopes for renewed support for the private sector, which had faced regulatory challenges in recent years.
Investors monitor political developments
Investors also closely monitored reports from Reuters, which indicated that Beijing is hoping for a “political decision” from the European Commission regarding the bloc’s anti-subsidy investigation into Chinese electric vehicles (EVs). The outcome of this investigation could have significant implications for China’s EV industry and its trade relations with Europe. Meanwhile, US President Donald Trump suggested that the 75-day deadline to ban the short-video platform TikTok could be extended, adding another layer of uncertainty to the tech sector.
Best and worst performers
Among large-cap stocks, China Unicom surged 7.5%, reflecting optimism surrounding the telecommunications sector, while Tingyi (Cayman Islands) Holdings gained 5.4%, benefiting from strong consumer demand. On the downside, shares of Zhaojin Mining Industry fell 3.8%, weighed down by weaker commodity prices, and Kingsoft Corp. dropped 2.9%, reflecting ongoing concerns about the tech sector’s performance amid regulatory and market challenges.
Overall, the session was marked by mixed sentiment as traders digested a range of domestic and international developments, signaling caution in the face of ongoing geopolitical and economic uncertainties.
