Overnight gains in US tech stocks, combined with rising expectations of policy easing, lifted Hong Kong stocks on August 5. The market opened lower but climbed in morning trading, with the Hang Seng Index closing the morning session up 0.55% at 21,062 points, reclaiming the 21,000-point mark. The Hang Seng Tech Index rose 1.85% to 4,650 points, while the HSCEI gained 0.7%. Turnover in the morning session reached about HK$78 billion, expanding from the same period yesterday.
Tech Stocks Stage a Sharp Rebound as Internet Giants Fight Back
Technology was the flagship of today's market rebound. Alibaba, Tencent Holdings, and Meituan-W rose 2.3%, 1.8%, and 3.1%, respectively, lifting the Hang Seng Tech Index to significantly outperform the Hang Seng Index. Semiconductor stocks were also active, with SMIC and Hua Hong Semiconductor gaining over 3%. On the news front, several internet companies' interim earnings forecasts beat expectations, and the regulatory environment remained stable, prompting clear willingness to add positions.
Notably, the AI concept heated up again. SenseTime-W surged 6.2% on market expectations that its large-model commercialization would accelerate; Baidu Group-SW also gained 4.5%. Institutions believe that after the earlier correction, valuations in the HK tech sector have returned to reasonable levels, and now is a window to position in quality leaders.
New EV Makers Surge as Delivery Data Catalyzes Rally
The Hong Kong auto sector performed strongly today, especially EV startups. XPeng-W, Li Auto-W, and NIO-SW jumped 5.8%, 5.2%, and 4.9%, respectively. Automakers have been releasing July delivery figures, with several hitting monthly records, and the competitive landscape is improving. In addition, government support for new-energy vehicles in rural areas has strengthened, and policy benefits continue to materialize.
Traditional automakers also kept pace: BYD Company rose 2.6% and Great Wall Motor gained 1.9%. Parts suppliers Fuyao Glass and Minth Group rose over 2%. The industry's improving prosperity lifted the entire supply chain.
Southbound Capital Posts HK$4.32 Billion Net Inflow in Morning Session; High Dividend and Growth Leaders Both Favored
Southbound sentiment clearly improved today. By midday close, Stock Connect (Shanghai and Shenzhen) recorded a combined net inflow of HK$4.32 billion. Tech leaders and new EV makers attracted large subscriptions, while high-dividend names such as China Mobile and CNOOC continued to see steady buying from allocators.
Industry insiders noted that southbound capital has recently shown a "barbell" allocation pattern: one end defensive high-dividend assets, the other high-beta growth stocks. This reflects mainland funds' moderately optimistic view of Hong Kong stocks, as they seek stable returns without missing structural rebound opportunities.
Market Sentiment Repairing; Hong Kong Stocks May See Tactical Rebound
Technically, the Hang Seng Index found strong support near 20,500 points and rose on expanding volume today. The MACD has formed a golden cross, suggesting the rebound could extend in the short term. The Hang Seng Tech Index found temporary support at 4,500 points, and if heavyweights continue to strengthen, it may challenge resistance at 4,700 points.
A strategist at Zhongtai International said HK stock valuations remain at historical lows, with a price-to-earnings ratio below 10 times and price-to-book ratio below 1 time, making them notably attractive among major global markets. Meanwhile, mainland China's steady-growth policies are gaining momentum and earnings expectations are improving, providing fundamental support for the medium-term trend of Hong Kong stocks.
However, some institutions cautioned that overseas market volatility and changes in US Treasury yields could still disturb Hong Kong stocks. Investors should watch the upcoming inflation data and Federal Reserve officials' speeches, manage positions prudently, and accumulate quality targets on dips.
Outlook: Seize Structural Moves and Focus on Earnings Certainty
Looking ahead, the Hong Kong stock market is expected to experience structural moves driven by both "valuation repair and earnings growth." Investors are advised to position along three main lines:
- Tech sector: focus on high-prosperity tracks such as AI, cloud computing, and semiconductors, selecting leading companies with core competitiveness;
- Auto supply chain: watch investment opportunities from rising EV startup sales and higher intelligent-driving penetration;
- High-dividend assets: in a falling-rate environment, energy, telecom, and financial stocks with low valuations and high dividends remain attractive.
Risk warning: global macroeconomic uncertainty, geopolitical risks, and listed companies' earnings misses.
