Hong Kong Stocks Surge Amid Optimism in US-China Relations

Hong Kong stocks experienced a notable rise, buoyed by a positive rally on Wall Street that propelled a key index to a record high. This increase was further supported by expectations of improved relations between the US and China, following statements made by US President Donald Trump at the World Economic Forum.

Hang Seng Index Performance

The Hang Seng Index soared by 2 percent, reaching 20,097.64 as of 11 am local time. This significant rise indicates that the benchmark is on track to conclude the week in positive territory for the second consecutive week, having already gained 2.2 percent this week. Additionally, the Hang Seng Tech Index recorded an impressive increase of 3.1 percent. On the mainland, the CSI 300 Index rose by 0.9 percent, while the Shanghai Composite Index climbed by 0.7 percent.

Leading Stocks and Market Movers

In the spotlight, Apple supplier Sunny Optical led the charge with a 6 percent increase to HK$71.65. Other notable stocks included WuXi AppTec, which rose by 5.1 percent to HK$57.05, and travel platform Trip.com, which advanced by 4.7 percent to HK$538.00.

Trump’s Remarks Impact Market Sentiment

Trump expressed optimism about US-China relations, referring to them as "very good," but also cautioned about potential tariffs on companies that do not manufacture in the US. His comments advocating for lower interest rates and cheaper oil contributed to this positive market momentum, leading the S&P 500 Index to rise by 0.5 percent, reaching an all-time high and crossing the 6,100 mark.

Carmakers and Other Significant Movements

The automotive sector was particularly active as three leading car manufacturers pursued legal action against the European Commission regarding anti-subsidy duties applied to Chinese-made electric vehicles. Notably, BYD's stock rose by 1.2 percent to HK$273.80, Geely Auto gained 1.4 percent to HK$14.36, and Li Auto advanced by 3.2 percent to HK$90.10.

Nongfu Spring's Resilience

Nongfu Spring saw its stock jump by 4.6 percent to HK$35.60. The billionaire founder, Zhong Shanshan, pledged to avoid price wars after his company faced significant challenges last year due to aggressive price cuts and negative online scrutiny, which in turn affected its market value considerably.

stocks, HongKong, economy