2025.08.2902:44:49UTC+00Hong Kong Shares Rebound, Eyes 4th Straight Monthly Gain

Hong Kong's stock market experienced an upturn on Friday morning, with the Hang Seng Index climbing by 191 points, or 0.8%, to reach 25,183. This marked the first session of growth in four trading days, following record-breaking closings for Wall Street's S&P 500 and Dow Jones due to stronger-than-expected U.S. GDP growth in the second quarter. The rise in Hong Kong stocks was extensive, predominantly driven by consumer, financial, and property sectors. Notably, Trip.com saw a 3.8% increase as a result of higher revenues, and Ping An Insurance rose by 2.7%, buoyed by plans to bolster its equity investments after previously increasing allocations to high-dividend banks listed in Hong Kong earlier in the year. Pharma stocks showed significant performance as well, with Wuxi Biologics surging 5.2%, and Innovent Biologics and Sino Biopharma following with increases of 2.4% and 2.2%, respectively. The Hang Seng is poised to achieve its fourth consecutive monthly gain, up approximately 1.6%, underpinned by a resurgence in AI enthusiasm, advantageous valuations in China and Hong Kong, supportive policies from Beijing, and abundant liquidity steering investors towards equity investments as bank returns remain low. Market participants are now looking forward to China's official Purchasing Managers’ Index (PMI) data for August, expected over the weekend.