Hong Kong stocks gain as tax worries abate, solar sector rallies on Musk plans
‘Broader VAT hikes on private services are unlikely in 2026 and would run counter to reflation efforts,’ Morgan Stanley says
The Hang Seng Index rose 0.1 per cent to 26,847.32 at the close of trading, after falling as much as 0.9 per cent earlier. The Hang Seng Tech Index fell 1.8 per cent. On the mainland, the CSI 300 Index gained 0.8 per cent while the Shanghai Composite Index added 0.9 per cent.
Power-tool maker Techtronic Industries added 5.3 per cent to HK$113.60, blind-box toymaker Pop Mart International advanced 2.4 per cent to HK$237.20 and logistics firm ZTO Express Cayman rose 2.3 per cent to HK$237.20.
Photovoltaic glass producer Xinyi Glass Holdings jumped 5.9 per cent to HK$10.81, while its spin-off Xinyi Solar Holdings advanced 2.6 per cent to HK$3.55. The rally in solar stocks came after local media reported that delegations sent by Elon Musk had visited several Chinese solar companies, days after he announced plans to build large-scale solar cell production facilities in the US.
WeChat operator Tencent Holdings dropped 4 per cent to HK$558, and e-commerce giant Alibaba Group Holding lost 0.9 per cent to HK$159.50. Search-engine giant Baidu fell 3 per cent to HK$137.20, and online-game provider NetEase lost 3.3 per cent to HK$191.90.
The Hang Seng Tech Index dropped as much as 2.7 per cent in the morning following Wall Street’s tech-led selloff and market talk over possible VAT adjustments targeting internet-related sectors. That followed a slump of as much as 3.4 per cent on Tuesday, when the index briefly dropped 20 per cent below an October peak – technically a bear market. The index has declined for five consecutive sessions, marking its longest losing streak since November 21.