Hong Kong’s Hang Seng Index ended the week with modest gains, bolstered by improving global sentiment, a rebound in regional equity markets and a revival in local capital market activity.
From June 23 to June 27, the index tracked higher alongside a broader Asia-Pacific rally, closing the week flat to slightly up. Investor confidence was buoyed by easing geopolitical tensions in the Middle East and dovish signals from the US Federal Reserve, which weakened the US dollar and reignited appetite for risk assets across Asia.
The Hang Seng has climbed approximately 21.2% year-to-date, marking its strongest first-half (1H25) performance since 2021.
Momentum in Hong Kong’s capital markets added to the optimism. Anjoy Foods, a Chinese frozen food manufacturer, filed to raise up to HK$2.64 billion in a Hong Kong IPO, reflecting renewed investor interest in equity fundraising. Market attention is also turning to the highly anticipated Shein IPO, expected in 2H25.
“The improving pipeline of listings is a sign of growing confidence in Hong Kong’s market structure and economic outlook,” said an equity strategist at a local investment bank.
Looking ahead, analysts expect the Hang Seng Index to remain sensitive to global monetary policy developments, Chinese macroeconomic data and foreign capital flows. While volatility may persist, the market’s recent resilience signals a cautiously constructive outlook for 2H25.
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