Hang Seng Rises, Driven by Tech and Healthcare Stocks
The Hang Seng Index rose approximately 0.8%, or 188 points, to reach the 25,685 level during Thursday's trading session. Gains were led by technology and healthcare stocks, which helped maintain positive sentiment in the Hong Kong market.
The healthcare and biotechnology sectors were key drivers. Everest posted standout performance, with first-half revenue surging 157.3% year-on-year to RMB1.15 billion and a non-IFRS net profit of RMB97.2 million. This growth was primarily fueled by NEFECON, a treatment for kidney disease.
Technology stocks also trended upward. Tencent reported a 176% year-on-year jump in second-quarter capital expenditure to RMB52.8 billion, driven by increased investment in artificial intelligence. Tencent's revenue rose 11%, while adjusted profit grew by approximately 9%.
Market sentiment was further bolstered by China's decision to keep its Loan Prime Rate (LPR) unchanged. The one-year LPR remained at 3.00%, and the five-year LPR was held at 3.50%, in line with market expectations.
Beyond China, a decline in global bond yields also boosted risk appetite. US Treasury yields eased after the US Treasury Department doubled its long-term debt buyback program. Among the stocks that gained, Tencent rose 0.8%, Xiaomi 2.7%, GenScript Biotech 8.3%, SMIC 1.5%, and WuXi Biologics 4.6%.
Newsmaker Analysis: The Hang Seng's rally indicates that sentiment toward technology and healthcare stocks remains robust, particularly following solid corporate earnings reports and the drop in global yields. As long as the index holds within the 25,500–25,600 range, the potential for further gains remains. However, the market must continue to monitor developments in China's economy and the direction of global yields as the next catalysts. (asd)
Source: Newsmaker.id
