Hong Kong stocks ended slightly lower for the week ended Sept 18, with the Hang Seng Index (HSI) falling 66.82 points or 0.27% to 24,750.78 as concerns over US interest rates, elevated oil prices and the supply of Chinese AI listings kept sentiment volatile.
The HSI rose 0.45% on Monday to 24,917.60 as technology and biotech shares led gains, with Trigiant Group surging 47% following news of a strategic partnership with a major AI firm.
The rally quickly reversed on Tuesday, however, with the index falling 1% or 250.36 points to 24,667.24. Turnover reached HK$187.2 billion as rising US Treasury yields, AI-sector concerns and higher oil prices triggered broad selling across technology, financial and property shares.
The 10-year US Treasury yield had briefly breached 5%, while concerns over the sustainability of AI valuations added to pressure on technology stocks. Elevated oil prices also fuelled concerns over inflation and the prospect of higher interest rates.
Hong Kong shares stabilised on Wednesday, with the HSI edging up 0.19% to 24,713.78 as technology stocks provided support. Zhipu AI rose more than 8%, ending an 11-session losing streak, while MiniMax, SMIC and Hua Hong Semiconductor gained between 5% and 7%.
Investors remained cautious ahead of the Federal Reserve’s policy decision, limiting the broader recovery.
The HSI slipped another 0.44% on Thursday to 24,604.29 as investors weighed bond yields and the outlook for US interest rates. Hutchmed bucked the broader weakness, jumping 14%, while healthcare and biotech counters also attracted selective buying.
Hong Kong stocks rebounded on Friday, with the HSI rising 0.60% or 146.49 points to 24,750.78 as oil prices eased and US Treasury yields softened after the Federal Reserve raised interest rates by 25 basis points to 3.75% to 4%.
Despite the late-week recovery, the HSI remained below its previous Friday close of 24,817.60, leaving the benchmark 0.27% lower for the week.
The market also faced pressure from concerns over the growing number of Chinese AI companies raising funds through Hong Kong listings, with investors questioning whether the influx could dilute the quality of new offerings.
Meanwhile, South Korea’s expansion of trading hours added to concerns over Hong Kong’s position as a regional financial hub, potentially increasing competition for international capital flows.
Overall, the week highlighted the market’s sensitivity to US yields, oil prices and AI sentiment, although selective buying in technology and biotech stocks provided some support.
