The Hang Seng Index rose 84 points, or 0.4%, to close at 22,776 on Thursday, logging its sixth consecutive session of gains and reaching its highest level in nearly a month.
Hang Seng pares gains at finish
The upbeat mood followed a rally in U.S. futures and was bolstered by President Trump’s suggestion that a major trade deal could be announced later in the day with a “big, and highly respected country,” widely speculated to be the United Kingdom. If confirmed, such a deal could serve as a template for future agreements with other global partners, helping to defuse trade tensions that have unsettled markets for months.
Investor sentiment was also lifted by continued signals of support for domestic markets from China’s sovereign wealth fund, Huanjin, which reiterated its intention to stabilize market conditions amid persistent economic headwinds. The recent rate cuts by the People’s Bank of China further fueled optimism, with the central bank lowering key lending rates and the reserve requirement ratio to boost liquidity and cushion the economy against the adverse effects of the U.S.-China tariff dispute.
Tech leads the gains
Technology shares led the gains, driven by media reports suggesting that the U.S. government may consider softening some restrictions on chip exports to Chinese firms, particularly in areas where national security concerns are minimal. The sector also drew strength from fresh pledges by Chinese authorities to accelerate innovation and provide additional funding for tech firms, reinforcing expectations of structural support for the industry.
Among individual stocks, Geely Auto surged 4.2% after announcing a $2.2 billion buyout offer to take its electric vehicle subsidiary Zeekr private, signaling continued consolidation in the EV space. Other notable performers included Li Auto, which climbed 5.2% on robust sales expectations, Wuxi Biologics, which added 4.2% amid signs of stabilizing biotech demand, and Meituan, which advanced 1.6% following an upbeat brokerage outlook on the food delivery and services platform.
Pessimism over Chinese govt measures
Still, broader gains were tempered in the afternoon session amid lingering skepticism over the effectiveness of Beijing’s latest stimulus measures. Investors also exercised caution ahead of the release of key macroeconomic data, including April’s trade and inflation figures, which are expected to offer fresh insight into the health of China’s recovery. Concerns persist that without more aggressive fiscal intervention, growth momentum may continue to falter, particularly in the face of global demand softness and weak domestic consumption.
Despite the cautious tone, the Hang Seng remains on track for one of its best weekly performances in 2025 so far, reflecting a tentative return of investor confidence as geopolitical and policy uncertainties begin to show signs of easing.
