Hong Kong Stock Market Indicator | Sentiment Recovery Leads to Volume-Driven Rebound in the Hang Seng Index, Market Focuses on Changes in Trump's Statements

Ask AI · How will Trump’s speech affect the sustainability of Hong Kong stock rebound?

Cailian Press, April 1 (Editor: Feng Yi) Boosted by easing tensions between the US and Iran, Hong Kong stocks saw a rebound today. By the close, the Hang Seng Index rose 2.04%, climbing more than 500 points, while the State-owned Enterprises Index and the Hang Seng Tech Index increased by 1.56% and 2.29%, respectively.

【Tech stocks and big finance sectors push higher; market sentiment recovers; Hang Seng rebounds with expanded trading volume】

On the trading floor, most of today’s large internet/tech stocks moved higher: Baidu rose nearly 4%, Alibaba rose more than 3%, Tencent rose 2.6%, Xiaomi rose about 1%, while Meituan and JD.com fell.

In other areas, heavyweight players in big finance and other “China concept” stocks helped lift the broader market. China Taiping and China Galaxy both rose, and Industrial and Commercial Bank of China, China Construction Bank, and Bank of China set new all-time highs again during trading. In addition, sectors such as airlines, innovative drugs, gold, non-ferrous metals, semiconductors, infrastructure, and defense-related industries all advanced collectively.

Among the declining sectors, energy stocks such as oil and gas and coal fell.

Overall, in recent times, as the standoff in the Middle East has dragged on, market expectations for a ceasefire have grown stronger, and the market’s sensitivity to geopolitical tailwinds has also become higher.

Today, the Hang Seng Index recorded total turnover of HKD 291.421 billion, rebounding strongly with increased volume and reclaiming the 25,000-point level.

In terms of short selling, the total short-selling amount was HKD 37.783 billion, accounting for 12.97% of the Hang Seng Index’s trading value; short-term short selling has narrowed somewhat.

BYD, Xiaomi Group-W, and Tencent Holdings ranked among the top three by short-selling amount, at HKD 1.929 billion, HKD 1.9 billion, and HKD 1.798 billion, respectively.

【Easing geopolitical situation drives broad-based gains; market focuses on Trump’s latest remarks】

On the market front, major popular sectors saw broad gains today. Overnight US stocks and Asia-Pacific stock markets also surged sharply, which further repaired Hong Kong market sentiment.

In the short term, the AI main theme—already highly upbeat—became active again, with sectors related to storage, chips, and power equipment collectively leading the rise. On the other hand, however, high-dividend stocks such as banks and paper companies also strengthened, indicating that some funds still keep risk-hedging moves in place.

It can be seen that the short-term rebound is closely tied to how much easing there is in the geopolitical situation. The market is currently focused on the fact that Trump will deliver remarks about Iran at 9:00 a.m. Beijing time on Thursday.

However, Iran still has strong actions. On the afternoon of April 1, Iran’s military issued a statement saying it struck the deployment site of US early-warning aircraft refueling aircraft.

And it is worth noting that some major trading teams on Wall Street said that the extremely bearish positioning before quarter-end is the main driver behind the sharp rebound in US stocks, and this is not due to investors’ views on the Iran war changing.

Overall, market views on the outlook for easing tensions between the US and Iran remain divided. Many analysts have expressed doubt about Trump’s show of weakness, believing the US will not withdraw troops without first trying to open the Strait of Hormuz.

According to the latest media report, Trump posted on social media claiming that the new Iranian government’s president requested a ceasefire. In addition, he also said that once the Strait of Hormuz is opened, the US will consider Iran’s ceasefire proposal.

【A-shares open higher and trade with choppy volatility; market sentiment improves; institutions are optimistic about opportunities to allocate to AI and non-ferrous metals】

In addition, A-shares opened higher and traded with volatile consolidation today, with all three major indices up more than 1%, and the STAR Market 50 Index up more than 3%. The combined trading value of the Shanghai and Shenzhen markets was 2.01 trillion yuan, up 199 billion yuan from the previous trading day. Overall, the market warmed up, with nearly 4,500 stocks across the board rising.

Looking ahead, Guosheng Securities said that in March, the valuations of Hong Kong’s information technology, real estate and construction, finance, and essential consumption sectors all declined to some extent. For allocations, it recommends focusing on energy companies with promising growth, non-ferrous metals industries with improving supply-and-demand dynamics, and internet companies that benefit from AI model iteration and the improvement of the AI ecosystem.

(Cailian Press, Feng Yi)