HK stocks hit new two month high, benchmark forecast improves

Hong Kong stocks ended the afternoon session at a new two-month high on Wednesday.

The benchmark Hang Seng Index gained 0.62 percent to close at 23,827 after once tipping 23,917 points, with a main board turnover of HK$216.3 billion. The Hang Seng Tech Index gained 0.51 percent, closing at 5,342.

Morgan Stanley raised its forecast for the Hang Seng Index by June 2026 to 24,500 points, about 3 percent higher than today’s level.

The investment bank sees the higher corporate earnings and valuations, improved economic outlook, slight appreciation of the Chinese yuan against the US dollar, and emerging mainland tech leaders as key growth drivers.

Contemporary Amperex Technology (3750) surged 10.2 percent to HK$337.40 after an additional HK$5.35 billion by fully exercising the over-allotment option.

Mainland automobile stocks advanced. BYD (1211) hit a record high of HK$464.80 before closing 4 percent higher at HK$462.60. Geely (0175) jumped 3 percent, while Li Auto (2015) gained 4 percent.

Chinese toymaker Pop Mart (9992) once tipped HK$220, a new record high, and closed 3.75 percent higher at HK$216.

In the mainland, the Shanghai Composite Index rose 0.21 percent to 3,387 points and the Shenzhen Component Index gained 0.44 percent to 10,294.

STAFF REPORTER