Hong Kong’s stock market ended Monday on a steady note, with the benchmark Hang Seng Index posting only a modest gain. The index edged up by 8 points to close at 26,347 points. Market turnover saw a significant increase, reaching HK$283.5 billion. This surge was largely attributed to the resumption of Southbound Stock Connect trading after the New Year holiday in mainland China. The higher turnover indicated active participation from mainland investors returning to the market, which helped to maintain liquidity and trading momentum.
The Hang Seng Tech Index also recorded a slight advance, climbing 5 points to settle at 5,741 points. Kuaishou Technology led the rally among technology stocks, driving overall sentiment in the sector. Despite the overall flat performance of the broader market, the tech segment demonstrated resilience and growth, reflecting investor confidence in select high-performing companies.
Kuaishou Technology Soars on Overseas Success
Shares of Kuaishou Technology experienced a remarkable surge, jumping by 11 percent during Monday’s trading session. The rally was sparked by positive news regarding its Kling AI model, which has gained substantial popularity in overseas markets. The international success of Kling AI boosted investor optimism about Kuaishou’s growth prospects beyond mainland China, reinforcing its position as a leading technology company in Asia.
Kuaishou’s strong performance contributed significantly to the gains in both the Hang Seng Index and Hang Seng Tech Index. The company’s ability to expand its technological offerings and capture global interest was seen as a positive development by market analysts. This upward movement contrasted with weaker trends observed in other sectors of the market, highlighting how specific news can drive individual stock performance even when broader indices remain relatively unchanged.
Oil Giants Face Declines After Global Developments
While technology stocks saw gains, shares of China’s major oil companies suffered notable declines on Monday. Cnooc dropped by 3.3 percent and PetroChina fell by 3.5 percent during afternoon trading. China Petroleum & Chemical Corporation also lost ground, down by 1.9 percent.
The drop in oil stocks followed a decline in global oil prices over the weekend. This was influenced by geopolitical events, particularly the United States’ capture of Venezuelan President Nicolas Maduro, which created uncertainty in international energy markets. Investors responded to these developments by pulling back from oil-related shares amid concerns about potential volatility in crude prices.
Mainland Markets Rebound Strongly Post-Holiday
In contrast to Hong Kong’s subdued performance, mainland Chinese stock markets posted robust gains on Monday. The Shanghai Stock Exchange Composite Index rose by 1.38 percent to reach 4,023 points, while the Shenzhen Stock Exchange Component Index climbed by 2.24 percent to close at 13,828 points.
The positive momentum in mainland markets was attributed to renewed investor confidence following the holiday period and continued support for key sectors. These gains reflected broad-based optimism about China’s economic outlook and suggested that mainland investors were more willing to take risks compared to their Hong Kong counterparts.
