On July 29, Hong Kong stocks oscillated higher in the morning session. Driven by the joint rally of the tech and financial sectors, the Hang Seng Index reclaimed the 25,000-point integer mark after two weeks. At midday close, the HSI stood at 25,080.32 points, up 0.87%; the Hang Seng China Enterprises Index at 8,970.15 points, up 1.05%; and the Hang Seng Tech Index rose 1.62% to above 6,200 points.

Tech stocks lead, semiconductors and internet soar together

The tech sector performed most prominently today, with most Hang Seng Tech Index constituents in the green. Boosted by the overnight strength of the US semiconductor sector, Hong Kong-listed semiconductor supply chain stocks collectively rose. SMIC (0981.HK) gained 4.2%, Hua Hong Semiconductor (1347.HK) rose 3.8%, and Shanghai Fudan (1385.HK) surged over 5%. Market analysts believe the global chip demand recovery expectation and domestic policy support are the main drivers.

Internet giants were also active. Tencent Holdings (0700.HK) rose 1.6%, briefly breaking through the HK$300 mark intraday; Alibaba (9988.HK) gained 2.1%; Meituan (3690.HK) rose 3.3%, leading large-cap tech stocks. On the news front, multiple institutions released research reports optimistic about tech stocks' H2 performance, believing that AI application deployment and ad revenue recovery will support valuation repair.

Financial stocks assist, insurance and banks rally together

The financial sector became another major bullish force. Insurance stocks rallied across the board: Ping An Insurance (2318.HK) rose 1.9%, China Life (2628.HK) gained 2.3%, and CPIC (2601.HK) climbed 2.8%. On the banking side, HSBC Holdings (0005.HK) rose 0.5%, China Construction Bank (0939.HK) gained 1.2%, and China Merchants Bank (3968.HK) rose 1.6%. Analysts noted that rising expectations of mainland easing policies, coupled with the popularity of high-dividend strategies, led to continuous capital inflows into the financial sector.

Notably, southbound capital continued its net inflow today. As of midday, the combined net buying via Shanghai-HK Stock Connect and Shenzhen-HK Stock Connect reached approximately HK$4.5 billion, with HK$1.8 billion from Shanghai and HK$2.7 billion from Shenzhen. By individual stocks, tech stocks such as Tencent, Meituan, and SMIC saw the largest net purchases.

Hot sectors: New energy vehicles and consumer electronics

The new energy vehicle sector continued its recent strength. BYD (1211.HK) rose 2.1%, NIO (9866.HK) gained 3.5%, and XPeng (9868.HK) climbed 4.0%. On the news front, data from the China Passenger Car Association showed retail sales of new energy passenger vehicles in the first three weeks of July grew 32% year-on-year, with market penetration rate further increasing.

The consumer electronics sector was boosted by news of Apple's new iPhone stocking. AAC Technologies (2018.HK) rose 2.6%, Sunny Optical (2382.HK) gained 1.9%, and Q Technology (1478.HK) surged over 3%. The market expects the consumer electronics supply chain to enter its traditional peak season in the second half.

Analysis of exceptional stock movements

• SMIC (0981.HK): Morning session volume expanded, with half-day turnover exceeding HK$1.5 billion, and the stock price hit a one-month high. The company previously announced it will disclose Q2 results in early August, with the market expecting sequential revenue growth.
• Kuaishou (1024.HK): Opened with a gap up, rising as much as 8% before easing slightly. The company announced deepened cooperation with multiple top e-commerce platforms, with impressive GMV data from its live-streaming e-commerce business.
• WuXi Biologics (2269.HK): Fell as much as 3% in the morning before recovering to near flat. The company issued a profit warning yesterday, expecting H1 net profit to decline 30%-40% YoY, but the market interpreted this as a "bad news out of the way" scenario.

Market outlook

Looking ahead to the afternoon, market participants generally believe the HSI still needs consolidation around 25,000 points, but the overall rebound trend remains intact. The Fed is about to hold its rate-setting meeting, with market expectations of a 25-basis-point rate hike highly likely, but the impact on Hong Kong stocks may be limited. Technically, after breaking above the 20-day moving average, short-term momentum has strengthened; if it can hold above 25,200 points, it may challenge 25,500 points further.

Investors can focus on the upcoming July PMI data and policy signals from the Central Economic Work Conference. In terms of sectors, balanced allocation between tech and high-dividend stocks is recommended, while also watching for individual stocks with above-expectation H1 results.

(This article is for reference only and does not constitute investment advice. The stock market is risky; invest with caution.)