On July 28, 2026, the Hang Seng Index opened high and trended lower throughout the day. It briefly surged to around 23,200 points in early trading, then fell back and barely held the 23,000-point mark at the close. At the close, the Hang Seng Index stood at 23,014.89 points, up 10.78 points or 0.05%; the Hang Seng China Enterprises Index closed at 8,250.46 points, down 0.12%; and the Hang Seng Tech Index closed at 4,789.32 points, up 0.34%. Total market turnover was approximately HK$125 billion, slightly lower than the previous trading day.
Market Highlights: Biopharma Sector Led Gains, Consumer Electronics Followed
In terms of sectors, the biopharmaceutical sector performed strongly, with an overall gain of over 2%. China Biologic Products (01177.HK) rose 4.5%, Hansoh Pharma (03692.HK) rose 3.8%, and Innovent Biologics (01801.HK) rose 3.2%. On the news front, the National Medical Products Administration recently issued several measures to accelerate the review and approval of innovative drugs, further simplifying the clinical trial approval process for innovative drugs and exploring the establishment of a priority review channel. Market expectations are that this will form long-term benefits for innovative drug companies. In addition, some pharmaceutical companies reported revenue growth exceeding expectations in their mid-2026 performance forecasts, which also boosted sector sentiment.
The consumer electronics sector was also active, with AAC Technologies (02018.HK) up 3.1% and Sunny Optical Technology (02382.HK) up 2.6%. Market rumors suggested that Apple will release hardware upgrade details for the new generation iPhone in September, with optical components and acoustic components expected to see volume and price increases, driving related supply chain stocks higher in advance.
Weighted Stocks Divergence: Tencent Rebounded, AIA Weakened
Major tech internet stocks mostly strengthened. Tencent Holdings (00700.HK) rose 1.1% to close at HK$385.2, with southbound funds net buying approximately HK$1.28 billion, making it the largest net buying stock of the day. Market analysts pointed out that Tencent's multiple games performed strongly during the summer period, coupled with continued growth in video account advertising revenue, supporting the stock's rebound. Meituan (03690.HK) rose 0.8%, and JD.com (09618.HK) rose 0.5%.
However, the financial sector was weak. AIA Group (01299.HK) fell 1.8%, dragging the HSI by about 40 points; Ping An Insurance (02318.HK) fell 0.9%. Chinese bank stocks also generally declined, with China Construction Bank (00939.HK) and Industrial and Commercial Bank of China (01398.HK) falling 0.7% and 0.6% respectively. Market participants noted that approaching month-end, mainland liquidity tightened somewhat, and northbound capital flows showed volatility, putting pressure on financial stocks.
Southbound Capital: Continued Net Buying, Tencent Increased Positions
Southbound capital recorded a net buy of approximately HK$1.85 billion, with the Shanghai-Hong Kong Stock Connect net buying HK$0.82 billion and the Shenzhen-Hong Kong Stock Connect net buying HK$1.03 billion. In terms of individual stocks, besides Tencent, Meituan and Xiaomi Group (01810.HK) also received net buying of approximately HK$0.35 billion and HK$0.21 billion respectively. On the sell side, CNOOC (00883.HK) was net sold approximately HK$0.42 billion, and China Construction Bank was net sold approximately HK$0.28 billion.
IPO Market: Three New Stocks to List This Week, Focus on Next Monday's Heavyweight
The Hong Kong IPO market remained active this week. On Wednesday (July 29), 3 new stocks will be listed on the main board of the Hong Kong Stock Exchange, with AI chip design company "SmartCore Technology" (stock code: 02588.HK) attracting the most attention. Its IPO public offering portion recorded an over-subscription of about 128 times, with a one-hand allotment rate of only 8%. In addition, medical AI company "MedBrain Technology" (02599.HK) will also be listed on the same day. The market expects that the first special technology stock under "Chapter 18C" will be officially listed next Monday, further injecting vitality into Hong Kong stocks.
Expert View: Short-Term Volatility, Medium-Term Bullish
For the outlook, analysts believe that the Hang Seng Index faces a tug-of-war around the 23,000-point level. From a fundamental perspective, expectations of mainland economic recovery and the shift in the Federal Reserve's policy provide support for Hong Kong stocks; but from a technical perspective, the index faces overhead resistance from previous highs in the 23,200 to 23,500 range, and the failure of trading volume to expand effectively also reflects market wait-and-see sentiment. Investors are advised to focus on rotation opportunities in tech and pharmaceutical stocks in the short term, while also paying attention to the impact of the Fed's late July rate decision on global liquidity.
July 28 Selected Hot Stocks Closing Prices (HKD)
- Tencent Holdings (00700) 385.20 +1.1%
- Meituan (03690) 210.50 +0.8%
- China Biologic Products (01177) 4.65 +4.5%
- AAC Technologies (02018) 24.80 +3.1%
- AIA Group (01299) 78.35 -1.8%
- China Construction Bank (00939) 5.42 -0.7%
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