Hong Kong stocks accelerate afternoon rally; HSI reclaims 26,000 points
On July 30, 2026, the Hong Kong stock market saw a strong afternoon rally. At close, the Hang Seng Index rose 1.65% to 26,087.43 points, reclaiming the 26,000-point mark; the Hang Seng Tech Index surged 2.34%, outperforming the broader market; the Hang Seng China Enterprises Index rose 1.82%. Market turnover expanded to HK$189 billion, indicating increased investor participation.
Tech sector explodes; internet giants rally
Tech stocks were the main driver of today's market advance. Tencent Holdings (00700.HK) closed up 3.12% at HK$482, hitting a two-week high intraday; Meituan-W (03690.HK) rose 4.05%, benefiting from better-than-expected local services data; Alibaba-SW (09988.HK) gained 2.78%. In addition, semiconductor leader SMIC (00981.HK) surged 5.3%, boosting the chip sector.
Analysts attributed today's tech rally to two factors: first, a strong rebound in US tech stocks overnight, with the Nasdaq hitting recent highs, boosting global tech sentiment; second, domestic policy signals continuing to support the digital economy and AI sectors, improving market expectations for tech earnings.
Southbound funds accelerate flow; institutions increase positions
Southbound net buying reached HK$5.08 billion on the day, marking the seventh consecutive session of net inflows. By flow structure, Tencent, Meituan, and new energy vehicle maker XPeng-W (09868.HK) saw heavy buying. Tencent alone received net buying of HK$1.25 billion, ranking first among the top ten active stocks under Stock Connect.
Morgan Stanley published a report stating that current HK stock valuations are at historical lows, with the HSI forward P/E below 11x, offering high appeal to long-term investors. The bank advised investors to position in tech, consumer, and new energy sectors benefiting from economic recovery and industrial upgrades.
Sector rotation accelerates; biopharma and consumer electronics surge
Sector rotation was notable today. The biopharma sector, which was flat in the morning, rallied in the afternoon. WuXi Biologics (02269.HK) rose 6.2%, Innovent Biologics (01801.HK) gained 4.5%, following news that the National Medical Products Administration issued new priority review measures for innovative drugs, benefiting innovative drug firms. Meanwhile, the consumer electronics sector strengthened on Apple supply chain news; Sunny Optical Technology (02382.HK) rose 3.8%, AAC Technologies (02018.HK) gained 4.1%.
On the other hand, earlier high-performing oil & gas and coal sectors saw profit-taking. CNOOC (00883.HK) fell 1.2%, China Shenhua Energy (01088.HK) dropped 0.8%, indicating capital rotation from traditional cyclical stocks to growth stocks.
Market outlook: short-term ups and downs expected; watch volume support
Looking ahead, First Shanghai Securities' chief strategist Linus Yip said today's HK market broke above 26,000 points on high volume, showing strong short-term momentum. However, the 26,400-point area faces prior consolidation zone resistance; follow-through volume is key. He suggested investors maintain a medium position, focus on tech and consumer leaders with strong earnings visibility, and watch next week's Fed rate decision for potential liquidity impact.
As of press time, HSI futures rose 0.3% in night trading, with overall market sentiment leaning positive. Investors can follow real-time live commentary for trading opportunities.
