Hong Kong stocks rise on mainland fund purchases, Beijing growth pledge

Name: US tariff storm disrupts global business expansions, but some see opportunities
Uploaded: 2025-07-02T02:53:35.000Z
Duration: 4 min 47 s
Description: US tariff storm disrupts global business expansions, but some see opportunities

Southbound net purchases in the first half amounted to 90 per cent of last year’s record inflows, according to stock exchange data

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Yulu Ao

Published: 10:53am, 2 Jul 2025Updated: 4:41pm, 2 Jul 2025

Hong Kong stocks rose from a one-week low as mainland funds ploughed more money into the city’s assets on optimism that Beijing will push for high-quality growth and rein in excessive price competition in some industries.

The Hang Seng Index gained 0.6 per cent to 24,221.41 on Wednesday, from the level on Monday. Markets were closed on Tuesday for a holiday. The Hang Seng Tech Index declined 0.6 per cent. On the mainland, the Shanghai Composite Index weakened 0.1 per cent and the CSI 300 Index was little changed.

Casino operator Galaxy Entertainment jumped 5.7 per cent to HK$36.85 while peer Sands China advanced 6 per cent to HK$17.32. Carmaker Geely Auto added 2.3 per cent to HK$16.32 after raising its 2025 deliveries target. Search-engine operator Baidu rose 1.5 per cent to HK$84.70 while solar panel maker Xinyi Solar soared 11 per cent to HK$2.76.

Mainland buying of Hong Kong stocks reached HK$731.2 billion (US$93 billion) in the first half, according to exchange data, or 90 per cent of last year’s purchases. Southbound net purchases amounted to HK$808 billion in 2024, a record since the Stock Connect link started in 2014. Many loaded up on tech leaders not listed on onshore exchanges.

04:47

US tariff storm disrupts global business expansions, but some see opportunities

“Hong Kong stocks, backed by scarcity premium and policy tailwinds, have emerged as key targets for southbound investors looking to upgrade their allocations,” strategists at Zhongtai Securities said in a report. The Hang Seng Index could hit 26,800 by the end of this year, based on historical second-half trends, it added.

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Hong Kong stocks rise on mainland fund purchases, Beijing growth pledge

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Southbound net purchases in the first half amounted to 90 per cent of last year’s record inflows, according to stock exchange data

Southbound net purchases in the first half amounted to 90 per cent of last year’s record inflows, according to stock exchange data