The Hang Seng surged 354 points, or 1.5%, to close at 23,512 on Tuesday, reversing Monday’s losses amid broad-based strength across all sectors. Investor sentiment was buoyed by renewed optimism surrounding a potential high-level dialogue, as hopes grew that U.S. President Donald Trump and China’s President Xi Jinping may speak later this week, signaling a possible easing of ongoing trade tensions that have weighed heavily on markets.
Hang Seng soars by 1.5% at close
Supporting the positive mood, Hong Kong’s Finance Secretary Paul Chan reaffirmed the city’s GDP growth target of 2% to 3% for 2025, citing solid economic performance in the first quarter alongside recent monetary easing measures and business support initiatives implemented in China. These factors collectively reinforced confidence in the region’s economic resilience despite global uncertainties.
On the corporate front, a major highlight was the finalization of the UK merger between Vodafone and CK Hutchison, culminating in the launch of VodafoneThree. The new entity announced ambitious plans to invest £11 billion over the next decade to build a standalone 5G network, positioning itself as a formidable competitor in the telecommunications sector and driving investor enthusiasm.
PMI limits the gains
However, gains were somewhat capped by a private survey revealing that China’s manufacturing sector contracted at its fastest pace in over two years in May, reflecting persistent pressure from U.S. tariffs and dampening some of the rally’s momentum. Despite this headwind, select companies delivered standout performances: Li Auto soared 5.7% following strong May sales figures, while Hansoh Pharma rose 1.2% amid optimism over its recent licensing deal with biotech giant Regeneron.
Other notable movers included Laopu Gold, which jumped 5.5%, Swire Properties, up 5.1%, and CK Hutchison itself, which gained 4.0%, reflecting broad-based investor interest across diverse industries. Overall, the Hang Seng’s rebound highlighted cautious optimism amid a complex mix of geopolitical developments, economic data, and corporate activity shaping market dynamics in the region.
