Hang Seng Index Retreats from 26,000 as Tencent Slides; Biotech Stocks Rally
SingTao · 1 SOURCESabout 1 hour ago2 MIN
Summary
The Hang Seng Index opened 61 points higher but encountered resistance at the 26,000 psychological level, ultimately retreating 163 points or 0.63% to 25,773 in the morning session with turnover reaching approximately HK$115.8 billion . Tencent Holdings (ticker: 700), scheduled to release quarterly results on Wednesday, fell 2.1%, while other heavyweight counters including AIA (1299) and Xiaomi (1810) declined 1.7% and 2.5% respectively, dragging down the index . In contrast, China National Offshore Oil Corporation (CNOOC, 883) surged 3.8% as international oil prices recovered above the US$80 mark following escalating tensions in the Middle East .
Key Points
- The Hang Seng Index rose as high as 26,060 points in early trading before succumbing to selling pressure, with the Tech Index dropping 62 points or 1.27% to 4,857
- Biotech stocks led the market gains, with Hansoh Pharma (3692) climbing 4.8%, BeiGene (6160) rising 4.5%, and CSPC Pharmaceutical (1093) advancing 3.2%
- Geopolitical uncertainty escalated as Iran demanded compensation from the United States for military conflicts, prompting US President Trump to counter with his own claims and instruct negotiators to include reparations in future talks
- Brent crude oil rose 0.05% to US$87.76 per barrel while WTI crude gained 0.16% to US$82.26 per barrel amid the Middle East developments
- On the earnings front, Alibaba (9988) opened 2.13% higher while Xiaomi (1810) fell 0.87%, with JD.com (9618) down 0.46% ahead of its Thursday results
Why It Matters
The failure to sustain above the 26,000 level underscores persistent market caution despite positive sentiment from AI-related stocks like Minimax, which will be added to the HKEX Tech 100 Index on August 12 . The divergence between weakness in internet giants and strength in biotech and energy sectors reflects investors repositioning ahead of major earnings releases this week, potentially setting the tone for Hong Kong markets through the remainder of the reporting season .
The failure to sustain above the 26,000 level underscores persistent market caution despite positive sentiment from AI-related stocks like Minimax, which will be added to the HKEX Tech 100 Index on August 12 . The divergence between weakness in internet giants and strength in biotech and energy sectors reflects investors repositioning ahead of major earnings releases this week, potentially setting the tone for Hong Kong markets through the remainder of the reporting season .