05.02.202608:33:27UTC+00Hang Seng Erases Early Weakness, Ends Slightly Higher

On Thursday, the Hang Seng Index experienced a modest increase of 38 points, or 0.1%, closing at 26,885. This upward trend marked the third consecutive day of gains, effectively reversing significant losses from earlier in the day as most sectors showed improvements. The rise in property, technology, and consumer stocks was facilitated by the easing of policy-related concerns after Chinese tax authorities dismissed rumors about possible tax adjustments affecting various sectors. Investor confidence was also bolstered by a strong pipeline of initial public offerings (IPOs) in Hong Kong, with 13 new listings finalized by the end of January, continuing a strong performance into 2025. Market participants are increasingly optimistic about potential new support measures from Beijing after the Lunar New Year, as China's national legislature is scheduled to convene in March to define policy priorities and establish economic growth targets for 2026. Notably, Baidu Hong Kong's shares rose 2.7% following the announcement of its inaugural dividend and a share buyback plan. Other significant gainers included Xiaomi Corp., up 2.8%, Mixue Group, which rose 2.7%, Pop Mart International with an increase of 2.2%, and Meituan, which advanced by 1.6%.