Hong Kong Stock Exchange Rose with Geopolitical Developments

Hong Kong Stocks on the Rise

The Hong Kong stock index rose on Thursday, driven by investor optimism over Donald Trump's planned meeting withChinese President Xi Jinping next week. The Hang Seng Index reached 25,976.98, up 0.7% at 15:05 local time. After initially recording a 0.4% decline, it managed to recover. The Hang Seng Tech Index also increased by 0.7%.

Meanwhile, the CSI 300 Index gained 0.3% and the Shanghai Composite Index rose by 0.2% on the mainland.

The performance of sportswear manufacturer Li Ning was commendable, rising 6.7% to HK$18.57. Real estate developer Sun Hung Kai Properties increased by 1.5% to HK$93.75, search engine giant Baidu rose by 1% to HK$116.20, and social media giant Tencent Holdings climbed 1.1% to HK$636.50.

Investors are closely watching whether the potential talks between Xi and Trump will help stabilize the uncertainty surrounding geopolitical risks and global trade flows. Trump indicated that the discussions would encompass topics such as soybean purchases, rare earth exports, and the Russia-Ukraine war.

Chinese oil company CNOOC reached HK$19.98, up 2.5%. Another major player, PetroChina, increased by 1.4% to HK$8. These gains came after Trump announced sanctions against Russia's largest oil producers.

Additionally, the White House is assessing export restrictions on U.S.-made software to China. This situation emerges as another factor increasing trade and geopolitical tensions. Kenny Tang, president of the Hong Kong Financial Analysts Institute, stated, "The market is currently adopting a wait-and-see approach, as Donald Trump's statements frequently change." Tang added, "Investors will remain cautious until the meeting with Xi is confirmed. Therefore, the current market conditions are likely to remain volatile."

Furthermore, Tang noted that there is support at the lower end of the trading range, particularly around the 100-day moving average. He expressed that once the market surpasses the 26,000-point level, it is likely to become more volatile.

On another note, China's Shenzhen technology hub unveiled an action plan to ensure that the total market value of domestic and foreign listed companies reaches over 20 trillion yuan (approximately $2.8 trillion) by 2027 through mergers and acquisitions.

Other major Asian markets exhibited mixed trends. Japan's Nikkei 225 index fell by 1.4%, while South Korea's Kospi index was down by 1%, and Australia's S&P/ASX 200 index showed little change.