On July 28, 2026, the Hong Kong stock market saw a long-awaited strong rally, with the tech sector leading the gains. The Hang Seng Tech Index opened high and climbed throughout the day, finally closing up 3.2% above 4,850 points, registering the biggest single-day gain in nearly three months. Leading tech stocks such as Tencent, Alibaba, and Meituan all posted significant gains, with Tencent rising 4.5%, Alibaba up 3.8%, and Meituan gaining 5.2%. Market turnover also expanded to HK$180 billion, indicating a clear increase in fund inflow intentions.
Multiple factors converge to trigger rebound
Behind this rebound lies the combined effect of multiple positive factors. First, positive signals emerged from the policy front. According to media reports, the China Securities Regulatory Commission and the Hong Kong Securities and Futures Commission recently held a high-level meeting, reaching consensus on further optimizing the mutual market access mechanism and supporting compliant allocation of mainland funds into Hong Kong tech stocks. The market expects that the trading threshold for Stock Connect may be lowered in the future and the scope of eligible stocks expanded, opening up imagination for incremental capital entering Hong Kong stocks.
Second, there is a strong need for valuation repair. Since 2025, the Hang Seng Tech Index has accumulated a decline of about 20%, and the average P/E ratio of its constituent stocks has fallen to historical lows. Some individual stocks, such as Alibaba and JD.com, have P/E ratios of less than 15 times, far below their US peers. Low valuations attracted long-term funds and southbound capital to buy on dips. Today, net southbound capital inflow reached HK$12 billion, nearly 70% of which flowed into the tech sector.
Leader stocks rally, sector rotation evident
From individual stock performance, tech leaders generally rose between 3% and 6%, while some small- and mid-cap tech stocks even hit their daily limit. Meituan led today's gains, spurred by news that its instant delivery business's Q2 order volume exceeded expectations. Tencent benefited from expectations of faster game license approvals and accelerated commercialization of its video account. Alibaba's cloud computing spinoff plan received market recognition, pushing its stock to a near-one-month high.
Notably, today's rebound was not a broad rally. Traditional blue chips like HSBC and China Mobile performed flat, reflecting a clear market tilt toward growth-oriented tech stocks. Analysts believe this rebound may signal the start of a structural rally rather than a full reversal. Future attention should focus on the global liquidity environment and regulatory policy changes.
Industry analysis: Is a turnaround finally here for HK tech stocks?
Li Ming, a Hong Kong stock strategist interviewed by Yueshi Finance, said: "Today's rebound can be seen as a concentrated release of sentiment. Hong Kong tech stocks had experienced a prolonged period of adjustment, with negative factors largely priced in. With easing US-China relations, normalization of domestic platform economy regulation, and catalysts from new technologies like AI, Hong Kong tech stocks could see a mid-term recovery rally."
However, he also reminded investors to remain cautious. Global inflationary pressures persist, the Federal Reserve's rate hike cycle is not yet fully over, and geopolitical risks remain. The rise of Hong Kong tech stocks needs sustained earnings support, not just valuation repairs. He suggested focusing on upcoming Q2 earnings reports, especially profit margins and cash flow performance.
Outlook: Watch volume and policy implementation
Looking ahead, the market generally believes that whether the Hang Seng Tech Index can continue to strengthen depends on two key points: first, whether trading volume can stay high; if turnover shrinks later, the rebound may be short-lived. Second, whether the previously anticipated favorable policies can actually be implemented. If the optimization plan for the Stock Connect mechanism is officially launched in Q3, it will attract more mainland institutions to allocate to Hong Kong tech stocks.
Technically, the Hang Seng Tech Index broke above its 60-day moving average on expanding volume today, with the MACD indicator showing a golden cross signal, turning short-term momentum positive. However, there is a dense overhang near the 5,000-point psychological level, and more momentum is needed to break through. In the coming days, the index may experience volatile upward movement, allowing investors to buy quality leaders on dips.
Overall, after a prolonged adjustment, today's rebound has injected confidence into Hong Kong tech stocks. However, to confirm a reversal trend, improvements in fundamentals still need to be observed. Yueshi Finance will continue to track changes in the Hong Kong stock market, providing timely analysis and strategy references for investors.