Hong Kong stocks rise on mainland fund purchases, Beijing growth pledge

Amjad Ali July 2, 2025

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Hong Kong stocks rise on mainland fund purchases, Beijing growth pledge

Hong Kong stocks rose from a one-week low as mainland funds ploughed more money into the city’s assets on optimism that Beijing will push for high-quality growth and rein in excessive price competition in some industries.

The Hang Seng Index gained 0.6 per cent to 24,220.65 at the local noon trading break on Wednesday, from the level on Monday. Markets were closed on Tuesday for a holiday. The Hang Seng Tech Index declined 0.3 per cent. On the mainland, the Shanghai Composite Index weakened 0.1 per cent and the CSI 300 Index added 0.1 per cent.

Casino operator Galaxy Entertainment jumped 6.5 per cent to HK$37.10 while peer Sands China advanced 6.9 per cent to HK$17.46. Carmaker Geely Auto added 2.1 per cent to HK$16.30 after raising its sales target. Search-engine operator Baidu rose 1 per cent to HK$84.25 while solar panel maker Xinyi Solar added 6.8 per cent to HK$2.66.

Mainland buying of Hong Kong stocks reached HK$731.2 billion (US$93 billion) in the first half, according to data from the Hong Kong bourse and Bloomberg, or 90 per cent of last year’s purchases. Southbound net purchases amounted to HK$808 billion in 2024, a record since the Stock Connect link started in 2014.

04:47

US tariff storm disrupts global business expansions, but some see opportunities

At a high-level meeting chaired by President Xi Jinping on Tuesday, China vowed to deepen the push for a unified national market, emphasising the need to curb aggressive price competition, guide companies to improve product quality and ensure fair state procurement practices, Xinhua reported on Tuesday.

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