Hong Kong stocks rally, Hang Seng recovers 26,000 points
On July 28, 2026, Hong Kong stocks staged a strong rebound. The Hang Seng Index opened higher and rose throughout the day, gaining 1.5% to close at 26,123 points, reclaiming the 26,000-point mark. The H-share Index rose 1.8%, and the Hang Seng Tech Index performed even better, surging 3.2%. Market turnover was active, with main board turnover exceeding HK$180 billion, indicating increased willingness of funds to enter the market.
Tech stocks surge across the board, heavyweights lead
The biggest highlight of today's market was the tech sector. Almost all constituents of the Hang Seng Tech Index rose, with Tencent Holdings (00700.HK) up 3.2% to HK$468, Alibaba (09988.HK) up 2.8% to HK$210, and Meituan (03690.HK) up 4.1%, standing out. In addition, Xiaomi (01810.HK) rose 2.5%, and NetEase (09999.HK) rose 3.6%. The strong performance of the tech sector was mainly driven by optimistic expectations about internet industry regulatory policies and the rebound of global tech stocks.
Fed policy expectations improve, HK stocks boosted
The core driver of this rebound came from the macro level. The US Federal Reserve is about to hold a rate-setting meeting at the end of this month, and the market generally expects it to keep rates unchanged, and may even hint at a future pause in rate hikes. This expectation pushed US stocks higher overnight, especially the Nasdaq index hitting a recent high. As an offshore market, Hong Kong stocks are highly sensitive to changes in global liquidity, and the Fed's dovish signal directly boosted investor risk appetite.
Southbound funds continue to flow in, Stock Connect active
From a capital perspective, southbound funds had a net inflow of HK$5 billion today, maintaining net inflows for the third consecutive trading day. Among them, Stock Connect (Shanghai) had a net inflow of HK$2.8 billion, and Stock Connect (Shenzhen) had a net inflow of HK$2.2 billion. Funds mainly flowed to tech and financial stocks, with Tencent, Meituan, and Hong Kong Exchanges (00388.HK) among the top net buyers. Analysts pointed out that domestic capital's demand for allocation to HK's low-valuation blue chips and high-quality growth stocks remains strong, especially against the backdrop of stable RMB exchange rates and strengthening domestic economic recovery expectations, further enhancing HK stocks' appeal to mainland investors.
Sector gains widespread, consumer and healthcare follow
Apart from tech stocks, the consumer and healthcare sectors also performed well. China Resources Beer (00291.HK) rose 2.3%, Mengniu Dairy (02319.HK) rose 1.8%, reflecting increased confidence in consumer recovery. In the healthcare sector, WuXi Biologics (02269.HK) rose 3.5%, Innovent Biologics (01801.HK) rose 4.2%, boosted by recent news of faster approval for innovative drugs. In the financial sector, AIA Group (01299.HK) rose 1.2%, HSBC Holdings (00005.HK) rose 0.8%, remaining stable overall.
Outlook: Can the rebound continue?
Regarding the outlook, multiple institutions have expressed views. Morgan Stanley pointed out that Hong Kong stocks' valuations are at historical lows, with the Hang Seng Index's current P/E ratio only around 9 times, providing a strong safety margin. As the Fed's rate hike cycle nears its end and China's economy steadily recovers, HK stocks may see a medium-term recovery. However, cautious views also note that geopolitical risks and global inflation stickiness could still cause disruptions, with possible short-term volatility. Investors should watch next week's Fed decision and China's PMI data.
Overall, today's HK stocks rose with increased volume, the Hang Seng stood above 26,000 points, and the tech sector was the leading force. Continued southbound fund inflows provided support, while expectations of a Fed policy shift opened upside. With multiple positive factors, the short-term trend of HK stocks is worth watching.