The Hang Seng Index remained relatively flat, hovering around the 23,043 level during Wednesday’s (Oct 28) trading session, as gains on Wall Street failed to provide a significant boost. Rising U.S. Treasury yields, a stronger dollar, and a decline in buying support from mainland Chinese investors were the primary factors weighing on the Hong Kong market.
While Wall Street offered a positive sentiment—with the Nasdaq climbing 1.18% ahead of earnings reports from major U.S. tech firms and the Federal Reserve’s policy decision—the rise in Treasury yields and a stronger dollar threatened to pressure the valuations of Hong Kong-listed tech stocks.
Additional pressure stemmed from a slowdown in capital inflows from mainland China. Throughout this month, mainland investors have been net sellers of Hong Kong stocks, offloading approximately HK$20 billion worth of shares—thereby removing a key source of market support.
Meanwhile, A-shares in mainland China are trading at a premium of about 33% compared to their Hong Kong-listed counterparts. This reflects a growing investor preference for China’s domestic market, bolstered by various support measures introduced by Beijing.
Despite the overall stagnation, some stocks managed to post gains, including Genscript Biotech (+8.67%), Kingboard Laminates (+6.77%), SMIC (+4.10%), and Z.AI (+3.54%). Conversely, AIA Group fell 2.90% and Pop Mart declined 1.59%, as the market continues to await the Federal Reserve’s policy direction and further movements in U.S. yields.