The Hang Seng Index surged 510 points, or 2.4%, on Wednesday to close at 22,073 — its highest level in over three weeks — as bullish sentiment extended for a third consecutive session. The rally was fueled by optimism over easing geopolitical tensions and favorable developments in both U.S. and Chinese policy signals.
Hang Seng soars 2.4% at finish
Investor confidence was buoyed after President Trump publicly reassured markets that he had no intention of removing Federal Reserve Chair Jerome Powell, tempering fears over central bank independence. He also hinted at the possibility of reducing tariffs on Chinese goods, a move that eased concerns about the escalating trade war and supported risk-on appetite globally.
Financials, consumer, and tech stocks led the charge, with gains between 2% and over 3%, as traders shifted their focus to upcoming domestic policy cues. Market participants are now eyeing the anticipated Politburo meeting, expected to take place later this week, for signals on Beijing’s next round of economic support measures. Analysts at Citi highlighted that the meeting could outline steps to stabilize growth, boost consumer confidence, and support struggling sectors like property and manufacturing.
Who outperformed
Among the standout performers, Tencent rose 3.0% and NetEase gained 1.7% after the National Press and Publication Administration approved 118 new video game titles in April, including products from both firms — a clear signal that regulatory pressure on the gaming industry may be easing.
Xiaomi soared 6.9%, riding momentum from strong Q1 performance, with domestic smartphone shipments jumping 40% to 13.3 million units. The growth beat expectations and underscored renewed consumer demand, especially for mid-range and high-end devices.
Other notable gainers included BYD Electronic (+6.1%), buoyed by optimism in the EV supply chain; KE Holdings (+6.0%), amid signs of stabilization in China's housing market; Wuxi Biologics (+5.3%), which saw renewed investor interest in biotech; and Akeso Inc. (+4.6%), driven by upbeat sentiment toward healthcare innovation.
With improved cross-border sentiment, strong earnings from key players, and potential policy easing on the horizon, the Hang Seng's recent momentum may extend further, especially if the Politburo meeting delivers market-friendly signals.
