Hong Kong Stocks Surge to Highest in Near 4 Years

Hong Kong shares soared 495 points or nearly 2% to 25,836 on Monday morning deals, extending gains for the second session and hitting their highest level in almost four years. The rally followed Wall Street’s advance on Friday after Fed Chair Jerome Powell signaled at Jackson Hole that rate cuts may be warranted amid a weakening labor market. Broad-based gains lifted the market, with the Hang Seng Tech Index climbing over 2.5% on renewed AI optimism after DeepSeek unveiled its upgraded V3 model, supported by domestic chips. Consumer, property, and financial stocks also climbed after Xinhua reported that the PBoC today would inject CNY 600 billion through its one-year MLF to sustain domestic liquidity. Still, caution lingered ahead of China’s January–July industrial profit data following H1 weakness, while Hong Kong’s July trade figures are also due this week. Top movers included China Resources Land (4.1%), SMIC (3.8%), Kuaishou Tech. (3.3%), Meituan (3.2%), and Tencent Hlds. (2.6%).