[ET Net News Agency, 29 May 2026] Hong Kong stocks breached the 25,000-point mark during yesterday's index futures expiry to kill bull contracts, but rebounded this morning driven by tech stocks and selected heavily-traded counters. The HSI reported 25,281 at midday, up 275 points or 1.1%, with main board turnover exceeding HKD 194.1 billion. The Hang Seng China Enterprises Index reported 8,471, up 106 points or 1.3%. The Hang Seng Tech Index reported 4,969, up 81 points or 1.7%.
"Mak Ka Ka: Hong Kong stocks lack catalysts, broader market remains under pressure"
Hong Kong stocks staged a rebound this morning, but it was mainly driven by individual sectors. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the broader market currently maintains a pattern of "trading individual stocks rather than the market", focusing primarily on trading the AI hardware sector. However, the HSI lacks pure AI tech stocks in its constituent structure, while traditional tech stocks like Tencent (00700) and Alibaba (09988) are performing sluggishly, leaving little confidence for the market outlook. She believes that with no positive catalysts for Hong Kong stocks recently, the market is expected to maintain a sideways trend in the short term, with support anticipated at 24,500 points and a consolidation range around the 24,500 to 25,500 levels.
Mak further pointed out that SpaceX has recently diverted more capital from Hong Kong stocks. Coupled with the latest fast-entry mechanism, SpaceX is eligible to join the Russell US Indexes and the FTSE Global Equity Index Series, which attracts institutional investors to switch their portfolios to SpaceX, putting further selling pressure on traditional tech stocks that lack attractiveness.
"Deploying Mainland China property stocks: remember to trade the volatility only"
The State Council yesterday issued the "15th Five-Year Plan for Urban Renewal". The document stated that the central government's fiscal authorities support the implementation of urban renewal actions, and allow local government special bonds to support eligible urban renewal projects. Mainland China property stocks performed well today, with Vanke (02202) surging 12% at midday, while China Overseas (00688), Shimao Group (00813), Longfor (00960), and China Res Land (01109) all saw significant gains.
Mak mentioned that financing is crucial for real estate enterprises, and this policy allows eligible urban renewal enterprises to issue corporate bonds, which will help revitalise the capital flow of the Mainland China property sector. She added that since leading enterprises hold a higher volume of real estate area across different first- and second-tier cities, they are expected to benefit more from the policy. Therefore, in terms of deployment, Mak expressed that first-tier Mainland China property enterprises like China Overseas and China Res Land should be the top choices.
In terms of trading strategy, Mak believes investors can deploy using range-trading. She explained that since the policy is currently news-driven, the market remains cautious about the Mainland China property sector which has been depressed for a long time. Investors should lock in profits and buy back in a timely manner based on actual future market data. For China Overseas, one can look at the HKD 14.5 to HKD 17.5 range; its trend is expected to form "higher highs and higher lows", and investors can accumulate when the share price corrects. For China Res Land, it is recommended to enter when the share price pulls back to HKD 34.5, with an expected target range between HKD 34.5 and HKD 43.
"Mak Ka Ka: Hong Kong stocks lack catalysts, broader market remains under pressure"
Hong Kong stocks staged a rebound this morning, but it was mainly driven by individual sectors. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that the broader market currently maintains a pattern of "trading individual stocks rather than the market", focusing primarily on trading the AI hardware sector. However, the HSI lacks pure AI tech stocks in its constituent structure, while traditional tech stocks like Tencent (00700) and Alibaba (09988) are performing sluggishly, leaving little confidence for the market outlook. She believes that with no positive catalysts for Hong Kong stocks recently, the market is expected to maintain a sideways trend in the short term, with support anticipated at 24,500 points and a consolidation range around the 24,500 to 25,500 levels.
Mak further pointed out that SpaceX has recently diverted more capital from Hong Kong stocks. Coupled with the latest fast-entry mechanism, SpaceX is eligible to join the Russell US Indexes and the FTSE Global Equity Index Series, which attracts institutional investors to switch their portfolios to SpaceX, putting further selling pressure on traditional tech stocks that lack attractiveness.
"Deploying Mainland China property stocks: remember to trade the volatility only"
The State Council yesterday issued the "15th Five-Year Plan for Urban Renewal". The document stated that the central government's fiscal authorities support the implementation of urban renewal actions, and allow local government special bonds to support eligible urban renewal projects. Mainland China property stocks performed well today, with Vanke (02202) surging 12% at midday, while China Overseas (00688), Shimao Group (00813), Longfor (00960), and China Res Land (01109) all saw significant gains.
Mak mentioned that financing is crucial for real estate enterprises, and this policy allows eligible urban renewal enterprises to issue corporate bonds, which will help revitalise the capital flow of the Mainland China property sector. She added that since leading enterprises hold a higher volume of real estate area across different first- and second-tier cities, they are expected to benefit more from the policy. Therefore, in terms of deployment, Mak expressed that first-tier Mainland China property enterprises like China Overseas and China Res Land should be the top choices.
In terms of trading strategy, Mak believes investors can deploy using range-trading. She explained that since the policy is currently news-driven, the market remains cautious about the Mainland China property sector which has been depressed for a long time. Investors should lock in profits and buy back in a timely manner based on actual future market data. For China Overseas, one can look at the HKD 14.5 to HKD 17.5 range; its trend is expected to form "higher highs and higher lows", and investors can accumulate when the share price corrects. For China Res Land, it is recommended to enter when the share price pulls back to HKD 34.5, with an expected target range between HKD 34.5 and HKD 43.
