[ET Net News Agency, 21 July 2026] A rebound in external semiconductor sectors sent Hong Kong AI hardware stocks surging again, coupled with Alibaba (09988) continuing to rise, driving the local market during early trading to challenge its 100-day moving average (around 25,256), touching a one-and-a-half-month high of 25,253 points before meeting resistance and easing back or even falling into negative territory. After 11:00, the HSI climbed step by step, closing up 7 points or less than 0.1% at midday, with the HSI ending at 25,150 at the break and main board turnover reaching nearly HKD 157.6 billion. The Hang Seng China Enterprises Index reported at 8,367, down 14 points or 0.2%. The Hang Seng Tech Index reported at 4,838, up 86 points or 1.8%.
"Jaseper Tsang: Expectation of easing offers limited boost, external risks remain in control of Hong Kong market"
Mainland China earlier announced second-quarter GDP growth of 4.3%, lower than the market expectation of 4.5%. The CSRC recently convened symposiums to hear suggestions from listed companies, brokerages, and fund management institutions on promoting the healthy and stable development of the capital market. At the same time, a number of central state-owned enterprises successively announced share repurchases and increases in shareholding by major shareholders.
With the Politburo meeting approaching, Goldman Sachs expects authorities to release stronger signals of policy easing. Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that although relevant policies have a boosting effect on Hong Kong stocks and can inject confidence into the market in the long run, the US-Iran situation and global capital flows clearly exert a greater impact on the HSI. He explained that compared with the Mainland China stock market, Hong Kong stocks belong to a highly open market, which, in addition to being affected by national policies, suffers a more significant shock from external factors. Currently, the US-Iran conflict has not eased, and the market remains under the shadow of inflation; together with the market's ongoing attention to the quantitative tightening stance of new Federal Reserve Chairman Kevin Warsh, the recent pullback in AI concept stocks is precisely a risk-averse adjustment made by global funds in response to the uncertainties of the external situation.
Tsang also expressed that boosted by policies, capital in Hong Kong stocks is expected to rotate into central state-owned enterprise and state-owned enterprise related shares in the short term. As foreign investors' appetite for investing in Hong Kong stocks remains low, and Mainland China earlier tightened channels for illegal cross-border stock trading, the inflow momentum of southbound funds has weakened. Under these offsetting forces, technology platform stocks will bear a certain amount of pressure. He further pointed out that under the pincer movement of multiple factors, the current trend of Hong Kong stocks remains unclear. The key to the broader market's trajectory lies in whether the HSI can stand firm above the 50-day moving average (around 24,715 points) for about five consecutive trading days; otherwise, it will be difficult to confirm an upward trend, with short-term fluctuations expected to oscillate within the range of 24,200 to 25,300 points.
"Shareholding increase has only short-term effect; Chalco favoured on fundamentals with target price at HKD 8.3"
Among the enterprises that announced plans to increase shareholdings, Tsang is relatively optimistic about Chalco (02600), whose controlling shareholder, Chinalco, plans to increase its holdings of A shares and H shares by RMB 1 billion to RMB 2 billion within the next 12 months, with the proportion of increased holding not exceeding 2% of total share capital. He explained that although the action to increase shareholding can provide short-term support, the long-term key still hinges on corporate fundamentals. From an industry perspective, the demand outlook for aluminium is relatively clear and optimistic; meanwhile, after earlier adjustments, Chalco's forecasted price-to-earnings ratio has dropped back to around 5 to 6 times, alongside a dividend yield as high as 7%, which, paired with the news of shareholding increase, significantly enhances its investment attractiveness. Tsang noted that Chalco's recent stock price is at a low level and has shown strong support at the HKD 7.3 level; investors can take advantage of the policy boost to accumulate in batches, with an initial target price looking up to HKD 8.3.
"Jaseper Tsang: Expectation of easing offers limited boost, external risks remain in control of Hong Kong market"
Mainland China earlier announced second-quarter GDP growth of 4.3%, lower than the market expectation of 4.5%. The CSRC recently convened symposiums to hear suggestions from listed companies, brokerages, and fund management institutions on promoting the healthy and stable development of the capital market. At the same time, a number of central state-owned enterprises successively announced share repurchases and increases in shareholding by major shareholders.
With the Politburo meeting approaching, Goldman Sachs expects authorities to release stronger signals of policy easing. Jaseper Tsang, Vice-Chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators Limited, told ET Net News Agency that although relevant policies have a boosting effect on Hong Kong stocks and can inject confidence into the market in the long run, the US-Iran situation and global capital flows clearly exert a greater impact on the HSI. He explained that compared with the Mainland China stock market, Hong Kong stocks belong to a highly open market, which, in addition to being affected by national policies, suffers a more significant shock from external factors. Currently, the US-Iran conflict has not eased, and the market remains under the shadow of inflation; together with the market's ongoing attention to the quantitative tightening stance of new Federal Reserve Chairman Kevin Warsh, the recent pullback in AI concept stocks is precisely a risk-averse adjustment made by global funds in response to the uncertainties of the external situation.
Tsang also expressed that boosted by policies, capital in Hong Kong stocks is expected to rotate into central state-owned enterprise and state-owned enterprise related shares in the short term. As foreign investors' appetite for investing in Hong Kong stocks remains low, and Mainland China earlier tightened channels for illegal cross-border stock trading, the inflow momentum of southbound funds has weakened. Under these offsetting forces, technology platform stocks will bear a certain amount of pressure. He further pointed out that under the pincer movement of multiple factors, the current trend of Hong Kong stocks remains unclear. The key to the broader market's trajectory lies in whether the HSI can stand firm above the 50-day moving average (around 24,715 points) for about five consecutive trading days; otherwise, it will be difficult to confirm an upward trend, with short-term fluctuations expected to oscillate within the range of 24,200 to 25,300 points.
"Shareholding increase has only short-term effect; Chalco favoured on fundamentals with target price at HKD 8.3"
Among the enterprises that announced plans to increase shareholdings, Tsang is relatively optimistic about Chalco (02600), whose controlling shareholder, Chinalco, plans to increase its holdings of A shares and H shares by RMB 1 billion to RMB 2 billion within the next 12 months, with the proportion of increased holding not exceeding 2% of total share capital. He explained that although the action to increase shareholding can provide short-term support, the long-term key still hinges on corporate fundamentals. From an industry perspective, the demand outlook for aluminium is relatively clear and optimistic; meanwhile, after earlier adjustments, Chalco's forecasted price-to-earnings ratio has dropped back to around 5 to 6 times, alongside a dividend yield as high as 7%, which, paired with the news of shareholding increase, significantly enhances its investment attractiveness. Tsang noted that Chalco's recent stock price is at a low level and has shown strong support at the HKD 7.3 level; investors can take advantage of the policy boost to accumulate in batches, with an initial target price looking up to HKD 8.3.
