On December 24, Hong Kong stocks traded for only half a day due to the holiday season, closing after the morning session. The market showed narrow fluctuations with notable sector divergence, as semiconductor and nuclear power stocks gained against the trend, while airline stocks remained under pressure. Southbound capital recorded a slight net outflow.
In terms of index performance, the Hang Seng Index edged up 0.17% to close at 25,818.93 points. The Hang Seng Tech Index also rose modestly by 0.19% to 5,499.30 points.
The market exhibited limited volatility after opening, lacking clear directional momentum amid subdued trading activity. This was attributed to reduced global liquidity ahead of the holidays and cautious investor sentiment.
Sector performance diverged significantly, with technology and energy-related sectors standing out. The semiconductor sector led gains, with
The nuclear power sector also advanced, led by
In contrast, airline stocks extended losses, dragging down the market. China Southern Airlines recorded its fourth consecutive decline, while other major carriers fell between 1.35% and 1.73%. Additionally, sectors like entertainment, coal, Apple-related suppliers, and biotech underperformed, limiting overall market returns.
Notable individual movers included
Large-cap tech stocks were mixed: Tencent inched up 0.17%, Kuaishou gained 0.39%, while Alibaba fell 0.82% and Bilibili dropped 1.24%. Southbound capital recorded a net outflow of HK$1.175 billion.
**Outlook:** Analysts suggest that while Hong Kong stocks may see short-term momentum, caution remains warranted. From a medium-to-long-term perspective, current valuations appear attractive.
1. A potential "Santa Claus rally" in U.S. tech stocks could lift Hong Kong’s tech sector, though lock-up expiries may cause volatility. 2. Investors should manage positions carefully, as U.S. tech stocks face risks in January—potential legal uncertainties and cautious expectations for earnings and capital expenditure guidance. Any disappointment could trigger a pullback, affecting sentiment in Hong Kong’s tech sector. 3. Until January, Hong Kong stocks are in an early uptrend phase, with dividend plays serving as a defensive anchor. Southbound inflows from insurers and fixed-income-plus funds may favor value stocks, while tech growth stocks could face choppy performance due to external influences.
Investment advice is not provided; investors should conduct their own risk assessments.
