Hong Kong's three major indices rise across the board, tech stocks lead Hang Seng above 28,000

On July 28, 2026, Hong Kong stocks saw a broad rally, with the Hang Seng Index, driven by tech and financial stocks, breaking through the 28,000-point mark and closing at 28,123.45 points, up 1.87%. The H-share Index and Red Chip Index rose 2.13% and 1.45% respectively. Trading was active, with total turnover reaching HK$152 billion, up more than 20% from the previous trading day.

Tech sector leads gains, Tencent and Meituan hit new highs

Tech stocks were the main driver of today's rally. The Hang Seng Tech Index surged 3.24% to close at 4,567.89 points, a three-month high. Heavyweight Tencent Holdings (0700.HK) rose 4.12% to HK$489.6, approaching the HK$500 mark, and briefly touched HK$493.8 during the session, the highest since October 2024. Meituan (3690.HK) gained 5.67% to HK$298.4, returning to near HK$300. Additionally, Xiaomi Corp (1810.HK) rose 3.45%, Alibaba (9988.HK) gained 2.89%, and JD.com (9618.HK) added 4.01%.

Analysts pointed out that the rise in tech stocks was driven by multiple positive factors: First, the release of implementation rules for the mainland's Data Security Law clarified cross-border data flow rules, easing market concerns about regulatory uncertainty. Second, the Fed kept rates unchanged at its July meeting, reducing expectations of a September rate hike, benefiting growth stock valuation recovery. Third, southbound Stock Connect saw net buying of approximately HK$6.8 billion today, the highest in nearly two weeks, with Tencent and Meituan receiving net buys of HK$1.56 billion and HK$0.82 billion respectively.

Financial stocks contribute, insurers and banks perform well

Besides tech stocks, the financial sector also contributed significantly to the index. The Hang Seng Financials Index rose 1.54%. Ping An Insurance (2318.HK) closed up 2.23% at HK$83.4; AIA Group (1299.HK) gained 1.87%; HSBC Holdings (0005.HK) rose 1.35%. Among mainland bank stocks, China Construction Bank (0939.HK) added 1.92% and Industrial and Commercial Bank of China (1398.HK) rose 1.67%.

Market interpretation suggests that the rise in financial stocks is linked to stronger expectations of mainland economic recovery. Data released by the National Bureau of Statistics on July 27 showed that profits of industrial enterprises above designated size grew 11.5% year-on-year in June, maintaining double-digit growth for two consecutive months, boosting confidence in corporate earnings improvement. Additionally, the Hong Kong Monetary Authority announced today that it would keep the base rate unchanged, as expected, stabilizing bank stock valuations.

Heavy inflows via Stock Connect, market sentiment warms

Data showed net southbound Stock Connect inflows of HK$6.83 billion today, with HK$4.21 billion via Shanghai and HK$2.62 billion via Shenzhen. This marks the fifth consecutive day of net inflows, with cumulative net inflows exceeding HK$20 billion. Funds mainly flowed into tech, financial, and consumer sectors.

In terms of institutional views, CICC released a report stating that Hong Kong stocks are currently undervalued historically, with the Hang Seng Index's P/E ratio at about 10.5 times, below the five-year average, offering a high margin of safety. With continued implementation of mainland pro-growth policies and easing overseas liquidity pressure, Hong Kong stocks are expected to see a recovery in the second half of the year. HSBC Securities, meanwhile, believes that tech stocks, after adjustments, still have strong fundamentals and advises investors to focus on leading companies.

Hot stock moves: BYD Electronic gains 8%, Haier Smart Home hits record high

Among individual stocks, BYD Electronic (0285.HK) surged 8.23% today to close at HK$45.6. On the news front, the company announced it had secured an order for a smart cockpit system from a leading international automotive brand, with expected additional revenue exceeding 10 billion yuan over the next three years. Haier Smart Home (6690.HK) rose 3.78% to close at HK$32.8, hitting an all-time high of HK$33.1 during the session. The company's overseas revenue in the first half of this year increased 15% year-on-year, benefiting from channel expansion in the European market.

Among Stock Connect targets, China Petroleum & Chemical Corporation (0386.HK) rose 2.11%, CNOOC (0883.HK) gained 1.78%, with energy stocks boosted by stabilizing international oil prices. Among consumer stocks, China Resources Beer (0291.HK) rose 3.24%, and Anta Sports (2020.HK) gained 2.65%, showing strength.

Outlook: Short-term focus on earnings season, mid-term on policy implementation

Looking ahead, the market generally believes Hong Kong stocks will enter a period of intensive interim earnings releases, with stock differentiation likely to intensify. Investors should focus on high-quality targets with earnings beats and good corporate governance. In the medium term, the key factors determining the trend of Hong Kong stocks will be the escalation of mainland fiscal policies, the clearing of risks in the real estate industry, and the clarification of the Fed's rate hike path.

Technically, the Hang Seng Index broke through 28,000 points with heavy volume today, and the MACD indicator showed a golden cross signal, suggesting a continued push toward the 28,500-point level in the near term. However, note that the 28,500-29,000 range was a previous heavy trading zone and may face some resistance. In terms of operations, investors are advised to maintain moderate optimism and build positions in core sectors such as tech, consumer, and healthcare during pullbacks.

At the close, the Hang Seng Index stood at 28,123.45 points, up 1.87%; the H-share Index at 10,567.89 points, up 2.13%; and the Red Chip Index at 4,321.56 points, up 1.45%. Main board turnover reached HK$152.035 billion, up about 21% from the previous trading day.