Hong Kong's Hang Seng Index rebounds on US-China trade talk optimism

Hong Kong stocks on Wednesday reversed course to snap a four-day losing streak, spurred by comments from China's foreign ministry that traders interpreted as a sign of potential progress in the US-China trade talks.

The Hang Seng Index closed 0.2 per cent higher at 25,165.94, recovering from a loss of as much as 0.9 per cent in the morning session. The Hang Seng Tech Index was little changed. On the mainland, the CSI 300 Index jumped 1.1 per cent and the Shanghai Composite Index advanced 1 per cent.

Sunny Optical Technology jumped 9.7 per cent to HK$82.25 and chipmaker SMIC added 3.4 per cent to HK$51.75. Hong Kong developer Sun Hung Kai Properties advanced 2.3 per cent to HK$92.70, while lender Hang Seng Bank added 0.6 per cent to HK$112.30.

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Short-video sharing platform Kuaishou Technology slumped 2.8 per cent to HK$71.90, while drug maker Hansoh Pharmaceutical Group slid 7.4 per cent to HK$35.96. Home-appliance maker Midea Group dropped 1.5 per cent to HK$81.40 and digital health services provider JD Health International retreated 4.4 per cent to HK$63.65.

Labubu toys boosted Pop Mart's first-half revenue. Photo: EPA alt=Labubu toys boosted Pop Mart's first-half revenue. Photo: EPA>

Toymaker Pop Mart, known for its Labubu doll, jumped 12.5 per cent to HK$316 after reporting better-than-expected first-half revenue and forecasting its 2025 revenue to double to 30 billion yuan (US$4.2 billion) from 13 billion yuan last year.

Overnight, the S&P 500 closed 0.6 per cent lower, while the Nasdaq 100 fell 1.4 per cent. The rout was led by Nvidia, which slid 3.5 per cent and wiped billions off its market capitalisation.

US Treasury Secretary Scott Bessent's on Tuesday said that Washington was "very happy" with the current tariff regime and the "very good talks with China". His recent remarks suggested that the tariffs could remain at the current level for a while.

Sentiment improved in the afternoon after China's Foreign Ministry spokeswoman Mao Ning, in response to Bessent's comments, reiterated Beijing's hope that the US would work with China to implement the consensus reached by the two presidents and strive for "positive outcomes" in economic talks on the basis of equality, respect and reciprocity.

The risks from the trade war and trade policies would "diminish in the future", said Christy Tan, investment strategist at Franklin Templeton Institute, at a briefing on Wednesday. She added US tariffs on China's imports were largely expected to be below 40 per cent.

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Two stocks debuted on Wednesday. SICC jumped 6.4 per cent to HK$45.54 in Hong Kong, and Shenyang Hongyuan Magnet Wire surged 358 per cent to 42 yuan in Beijing.

Elsewhere in Asia-Pacific, Japan's Nikkei 225 dropped 1.5 per cent and South Korea's Kospi retreated 0.7 per cent, while Australia's S&P/ASX 200 added 0.3 per cent.

Additional reporting by Aileen Chuang

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.

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