On July 28, 2026, the Hong Kong stock market saw a long-awaited strong rally. The Hang Seng Index opened high and moved higher, closing up 1.36% at 21,235.48 points, reclaiming the 21,000 integer mark. The Hang Seng China Enterprises Index rose 1.52%, and the Hang Seng Tech Index gained 2.13%, showing impressive performance. Market turnover was active, with main board turnover expanding to HK$125 billion, indicating increased willingness of funds to enter the market.
Tech Stocks Rebound Broadly; Meituan and Tencent Lead Gains
The tech sector was the core engine of today's market rally. Among the 30 constituents of the Hang Seng Tech Index, 27 recorded gains. Meituan-W (03690.HK) closed up 4.2% at HK$185.6, hitting a near one-month high. On the news front, the penetration rate of Meituan's instant retail business in second- and third-tier cities exceeded expectations, and several brokerages raised their target prices. Tencent Holdings (00700.HK) rose 2.8%, returning above HK$400, benefiting from the normalization of game license issuance and growth in video account advertising revenue. Alibaba-SW (09988.HK) gained 1.9%, as the company announced it would increase investment in cloud computing infrastructure in the Southeast Asian market.
In addition, semiconductor concept stocks also performed well. SMIC (00981.HK) rose 3.5% as the market expects the pace of domestic substitution to accelerate; Hua Hong Semiconductor (01347.HK) gained 4.1%.
New Energy Sector Surges; Policy Tailwinds Continue to Support
The new energy sector also contributed significant gains today. BYD Co. (01211.HK) closed up 3.8% at HK$268. The company's new energy vehicle sales in June increased 45% year-on-year, and overseas export data exceeded expectations. Li Auto-W (02015.HK) rose 5.2%, XPeng-W (09868.HK) gained 4.6%, and NIO-SW (09866.HK) rose 3.9%.
On the news front, multiple mainland provinces and cities recently introduced policies to promote consumption of new energy vehicles, including purchase subsidies and plans for charging facility construction. The State Council earlier confirmed that the exemption of purchase tax on new energy vehicles would be extended until the end of 2027, further boosting industry confidence. In the photovoltaic sector, Xinyi Solar (00968.HK) rose 3.1%, and Flat Glass Group (06865.HK) gained 2.9%, benefiting from stable upstream silicon prices and a recovery in downstream installation demand.
Southbound Capital Continues to Inflow; Hong Kong Dollar Liquidity Improves
On the funding side, southbound capital net bought HK$8.25 billion today, marking the 8th consecutive trading day of net inflows. Among them, Shanghai-HK Stock Connect net bought HK$3.82 billion, and Shenzhen-HK Stock Connect net bought HK$4.43 billion. The funds mainly flowed into the tech and new energy sectors, with Tencent, Meituan, and BYD all receiving large-scale additional holdings.
In terms of Hong Kong dollar liquidity, short-term Hong Kong Interbank Offered Rates (HIBOR) edged lower, with the overnight HIBOR at 4.35%, down 10 basis points from last Friday. The HKD/USD exchange rate stabilized around 7.82, with no significant fluctuations.
Analysts' Views: Short-Term Rebound Expected to Continue; Focus on Earnings Improvement
Looking ahead, several institutions believe that Hong Kong stocks are still undervalued at historically low levels and are attractive. A strategist at one brokerage noted, "Today's rally is not an isolated event but a positive reaction to market expectations of increased mainland pro-growth policies. The earnings visibility of the two main lines — tech and new energy — is relatively high, which could help the Hang Seng Index challenge the 22,000 level." However, he also cautioned that repeated overseas inflation and geopolitical risks could trigger volatility, and investors should control their positions.
Another international investment bank released a report stating that earnings growth of Hong Kong-listed companies is expected to bottom out and recover in the second half of the year, especially as cost reduction and efficiency improvement measures of internet platform companies have begun to show results. It recommended overweighting the internet and consumer sectors.
Outlook: Focus on Fed Meeting and Mainland Economic Data
The Federal Reserve will hold its July policy meeting this week, with the market generally expecting a 25-basis-point rate hike. If Powell sends a dovish signal, it could further boost global risk assets. In addition, China's mainland will soon release July manufacturing PMI data; if it exceeds expectations, it would be a positive catalyst for Hong Kong stocks.
On individual stocks, leading companies such as Tencent, Meituan, and BYD remain market bellwethers. Investors can focus on the upcoming interim results and position themselves in stocks that are expected to beat expectations.