The Hong Kong stock market closed with mixed results on Friday, as the Hang Seng Index edged higher while the Hang Seng Tech Index slipped. Despite intraday volatility, the broader market showed resilience, supported by gains in dividend-focused blue chips, crypto-related assets, and financials. Meanwhile, semiconductor stocks declined sharply after earnings releases from industry leaders SMIC and Hua Hong Semiconductor.
At the close, the Hang Seng Index rose 0.4% (91.82 points) to 22,867.74, with total turnover reaching HK$161.6 billion. The Hang Seng China Enterprises Index gained 0.1% to 8,308.83, while the Hang Seng Tech Index fell 0.93% to 5,180.25. For the week, the Hang Seng added 1.61%, while the tech index declined 1.22%.
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Market Outlook: Consolidation Ahead Amid Trade Uncertainty
According to Guotai Junan International, Hong Kong equities may enter a phase of sideways consolidation following recent rebounds. With international trade negotiations expected to remain complex and uncertain, investors are advised to adopt a defensive stance by building core positions in high-dividend stocks while awaiting clearer policy signals.
Once market conditions stabilize, rotating into sectors aligned with domestic policy support—such as technology innovation, green energy, and consumer stimulus—could unlock long-term investment opportunities and generate excess returns.
Blue-Chip Performance: Property and Auto Stocks Lead Gains
The blue-chip index was driven by strong performances in property and auto sectors.
- Henderson Land (00012) led the charge with a 6.18% gain to HK$24.05, contributing 3.38 points to the Hang Seng. Analysts at BofA Securities highlighted its attractive 7.9% dividend yield—well above the sector average of 5.4%. With one-month HIBOR stabilizing around 2%, demand for investment-grade properties is expected to recover.
- Sun Hung Kai Properties (00016) climbed 5.05% to HK$80.15, adding 9.19 points to the index.
- Geely Automobile (00175) rose 4.79% to HK$18.36 after announcing plans to fully acquire Zeekr, its EV subsidiary, in a move that could streamline operations and boost long-term profitability.
On the downside:
- SMIC (00981) dropped 4.76% to HK$43 following its quarterly report.
- WH Group (00288) fell 4.73% to HK$6.85 amid weak consumer sentiment in key markets.
Key Sector Movements
Crypto ETFs and Related Stocks Soar
Bitcoin surged past $100,000 for the first time in three months, reaching $103,712—a 4.05% gain on the day—fueling a rally in cryptocurrency ETFs and blockchain-related equities.
- CSOP Ether ETF (03046) jumped 23.26% to HK$5.68.
- Bosera Ether ETF (03009) rose 22.9% to HK$1.814.
This surge follows improved global risk appetite, partly driven by optimism around U.S.-UK trade talks and revised bullish forecasts from institutional analysts. Geoffrey Kendrick, head of digital assets at Standard Chartered, admitted his previous $120,000 Bitcoin price target for Q2 “might be too low.”
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Consumer Stocks Shine on Stimulus Hopes
Several consumer names posted strong gains as policymakers emphasized boosting domestic demand.
- MINISO (09896) rose 7.02% to HK$37.35.
- Pop Mart (09992) gained 6.76% to HK$191.1.
- Cosmetic brands like CHAGEE (02555) and Parlyn (02145) also advanced.
The momentum aligns with recent commentary from China’s Commerce Minister Wang Wentao, who called for expanding service consumption and cultivating new consumer trends. Analysts at Guolian Securities maintain a positive outlook on premium domestic brands such as Laofu Gold and Giant Biological.
Financials Gain on Policy Support
Banks and insurers advanced following the People’s Bank of China’s announcement of a comprehensive stimulus package on May 7, including:
- A 50-basis-point cut in the reserve requirement ratio (RRR).
- A 10-basis-point reduction in policy interest rates.
Sector highlights:
- Chongqing Rural Commercial Bank (03618): +4% to HK$6.24.
- Agricultural Bank of China (01288): +2.11%.
- China Merchants Bank (03968): +1.77%.
Additionally, China Merchants Bank and CITIC Bank announced plans to establish wholly-owned financial asset investment companies (AICs), signaling stronger support for tech innovation financing—a move welcomed by analysts at Guosen Securities.
Semiconductor Sector Slumps After Earnings
Despite solid revenue growth, both SMIC and Hua Hong Semiconductor (01347) saw shares tumble post-earnings.
- Hua Hong (01347) plunged 7.94% to HK$32.45 after reporting a net profit of just $3.75 million—down 88.2% year-on-year—despite a 17.6% revenue increase to $540.9 million.
- SMIC declined 4.76% despite posting Q1 revenue of RMB16.3 billion (+29.4%) and net profit of RMB1.356 billion (+166.5%).
Market attention turned to changes in shareholdings by Xi Xin (Hong Kong) Investment, a subsidiary of the National Integrated Circuit Industry Investment Fund, which reduced its stakes in both firms’ H-shares—though no A-share disposals were announced.
Property Sector Under Pressure
Mainland developers declined amid soft sales data:
- Greentown China (03900): -3.42%
- Yuzhou Properties (03383): -3.26%
According to CRIC, homebuying demand cooled after Q1’s rebound, with top 100 developers’ April sales down 16.9% YoY. With policymakers committed to stabilizing the property market, further easing measures are expected.
Notable Stock Movers
Andejuice (02218) Soars on Strong Earnings
Andejuice surged 23.96% to HK$17.8 after reporting Q1 revenue of RMB430 million (+58.98%) and net profit of RMB86 million (+61.31%). The stock has more than doubled this week.
Tingyi (Cayman Islands) Holding (00220) Up on Profit Growth
Tingyi rose 9.58% to HK$9.84 after posting a 31.8% YoY increase in first-quarter net profit to RMB602 million. Daiwa maintained a “Buy” rating with a raised target price of HK$10.
SF同城 (09699) Benefits from Holiday Demand
SF Same-Day Delivery saw shares rise 7.98% as “Golden Week” delivery volumes surged—up 87% YoY overall, with supermarket orders up 177%.
Frequently Asked Questions (FAQ)
Q: Why did crypto ETFs rise even though Bitcoin is volatile?
A: Institutional confidence and macroeconomic easing have increased risk appetite. ETF inflows reflect growing mainstream adoption despite short-term volatility.
Q: Are dividend stocks still attractive in this environment?
A: Yes—especially in uncertain markets. High-yield property and utility stocks offer stability and income while investors await clearer growth signals.
Q: What does SMIC’s earnings miss tell us about semiconductor demand?
A: While revenue grew strongly due to backlog fulfillment, weak guidance for Q2 suggests near-term demand softness, particularly in consumer electronics.
Q: Is the consumer rebound sustainable?
A: Early indicators are positive, especially for premium brands and experiential spending. Continued policy support will be key to maintaining momentum.
Q: Why are banks launching financial asset investment companies?
A: AICs allow banks to directly invest in tech firms’ equity, supporting innovation while diversifying income beyond traditional lending.
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As global markets digest shifting trade dynamics and domestic policy responses, investors should focus on resilient sectors with strong fundamentals—dividend payers, policy-supported industries, and digital assets positioned for long-term growth.
Core Keywords: Hang Seng Index, cryptocurrency ETFs, SMIC earnings, consumer stocks, dividend stocks, Bitcoin price, Hua Hong Semiconductor, Hong Kong market analysis