The Hong Kong stock market ended with mixed results today, as investor sentiment remained divided amid shifting macroeconomic signals and sector-specific catalysts. The Hang Seng Index edged up 0.28% to close at 23,006.27 points, while the Hang Seng Tech Index slipped 0.58% to 5,535.86 points. Meanwhile, the Hang Seng China Enterprises Index rose marginally by 0.03%, finishing at 8,419.69 points.
Market Sentiment Under Pressure After Recent Rally
Despite the modest gains, market momentum has cooled after the Hang Seng Index briefly breached the key 24,000-point level last week—only to pull back sharply and record its first weekly decline since mid-January. This reversal has amplified investor caution and highlighted growing divergence in market outlook.
According to analysts at CICC, the risk premium implied by a 24,000-point index level has already exceeded that seen during China’s post-pandemic reopening in early 2023 and is nearing the emotional peak observed during the tech bubble of 2021. Given this elevated sentiment, they recommend profit-taking within the 23,000–24,000 range in the near term, while watching for support around the 22,000 threshold over the medium term.
Bearish pressure also intensified today, with short-selling activity rising across major indices. At market close, short-selling accounted for 18% of total turnover in the Hang Seng Index, up from the previous session, while the Tech and H-share indices saw even higher proportions at 18.17% and 18.44%, respectively.
👉 Discover how global policy shifts are shaping digital asset trends in 2025
Crypto-Related Stocks Surge on U.S. Regulatory Developments
One of the standout performers today was the cryptocurrency sector, which rallied strongly following news of upcoming regulatory engagement in the United States.
Shares of OKLink (01499.HK) soared 42.64%, while Bluehole Interactive (08267.HK) and Boya Interactive (00434.HK) gained 26.92% and 23.01%, respectively. The surge extended to spot Bitcoin ETFs listed in Hong Kong, with ChinaAMC Bitcoin ETF (03042.HK), Harvest Bitcoin ETF (03439.HK), and Bosera Bitcoin ETF (03008.HK) all rising over 16%.
Why Crypto Stocks Are Gaining Momentum
The catalyst? U.S. President Donald Trump is set to host the first-ever White House Crypto Summit on March 7, bringing together industry leaders to discuss regulatory frameworks, stablecoin oversight, and Bitcoin’s role in the future of American finance. Trump has previously pledged to make crypto policy a national priority and position the U.S. as a global hub for blockchain innovation.
This event could set the tone for crypto regulation over the next four years, fueling optimism among investors globally—including in Hong Kong, where digital asset adoption is accelerating.
👉 Stay ahead of the next market-moving crypto event—track real-time insights here
Beverage Stocks Ride Wave of Consumer Hype
Another bright spot was the beverage sector, particularly stocks tied to China’s booming mass-market drink chains.
Mixue Group (02097.HK) made a splash on its Hong Kong IPO debut, surging 43.21% to close at HK$27.35, pushing its market cap to HK$109.3 billion. The stock opened more than 29% higher and maintained strong upward momentum throughout the session.
UBIQUM (02429.HK) followed with a 19.02% gain, while Vitasoy International (00345.HK) rose 2.99%. In contrast, Chabaidao (02555.HK) and Gumatea (01364.HK) declined by 5.83% and 1.04%, respectively.
What’s Driving Mixue’s Success?
Analysts at Guosen Securities attribute Mixue’s rapid growth to its "low-price +下沉 (lower-tier city)" strategy. Over 57.2% of its stores are located in tier-3 cities or below, supported by a vertically integrated supply chain—including five national production bases and a 12-hour delivery network—that keeps product loss rates as low as 0.3%.
This operational efficiency enables aggressive expansion and pricing power, making it a compelling model in China’s competitive beverage landscape.
Renewable Energy Stocks Rebound on Policy Tailwinds
The solar energy sector also posted strong gains after recent policy signals from Beijing.
Trina Solar (00968.HK) jumped 26.25%, followed by Xinte Energy (01799.HK) (+7.25%) and Sunny Energy (00757.HK) (+4.05%).
At a recent industry forum hosted by the China Photovoltaic Industry Association, Xing Yiteng, head of new energy at the National Energy Administration, acknowledged that cutthroat competition in solar manufacturing remains unresolved. However, he confirmed that regulators are working with NDRC and MIIT to refine supportive policies.
Key initiatives under development include:
- A national plan for renewable energy during the "15th Five-Year Plan" period
- Policies to promote integrated development of new energy
- Guidelines for photovoltaic plant upgrades and decommissioning
- Localized electricity market rules tailored to regional renewable conditions
- Measures to boost distributed solar use at the community level
These steps signal continued government commitment to clean energy infrastructure, providing long-term visibility for investors.
Tech and Auto Sectors Show Mixed Results
AI and Semiconductor Stocks Retreat
Gains in crypto were offset by weakness in broader tech plays.
Shares of Weimob (02013.HK), Xiaomi Group (01810.HK), and China Software International (00354.HK) fell 2.42%, 1.74%, and 1.06%, respectively—partly due to profit-taking after recent rallies linked to AI enthusiasm.
Similarly, semiconductor stocks declined: SMIC (00981.HK) dropped 4.10%, Hua Hong Semiconductor (01347.HK) fell 2.62%, and Innospec (02577.HK) lost 0.28%.
Auto Sector Delivers Contradictory Signals
The automotive segment showed mixed performance despite strong delivery data.
Beijing Automotive (01958.HK) rose 5.02%, Leapmotor (09863.HK) gained 3.99%, and XPeng (09863.HK) added 1.94%. XPeng reported a staggering over 570% year-on-year increase in February deliveries, while both Leapmotor and Li Auto delivered more than 25,000 units.
Yet Li Auto (02015.HK) fell 4.85% and BYD (01211.HK) declined 2.15%, reflecting investor concerns about pricing pressure and consumer hesitation.
According to the China Automobile Dealers Association, February’s inventory index stood at 56.9%, still above the boom-bust threshold despite a 5.4-point monthly drop. Analysts cite a complex mix of factors: early demand triggered by trade-in subsidies, fewer selling days due to Lunar New Year, and consumer hesitation amid frequent new model launches and price cuts.
Notable Individual Stock Movers
China Tobacco Hong Kong Jumps on Profit Forecast
China Tobacco Hong Kong (06055.HK) climbed 7.68% to HK$27.35 after announcing an expected year-on-year increase of at least 30% in net profit for the fiscal year ending December 31, 2024.
Dongfang Selection Rises on Strategic Partnership Hints
Dongfang Select (01797.HK) gained 8.64% to HK$14.08 following positive commentary from Citigroup, which initiated coverage with a “Buy” rating and HK$18.5 price target.
CEO Yu Minhong expressed openness to collaborating with retailer Pangdonglai, emphasizing alignment in product quality standards. Potential collaboration models may include co-branded products or integration of Pangdonglai’s premium goods into Dongfang’s e-commerce platform.
Frequently Asked Questions
Q: Why did crypto stocks rise in Hong Kong today?
A: The rally was driven by anticipation of the upcoming White House Crypto Summit on March 7, where U.S. policymakers are expected to outline a clearer regulatory path for digital assets.
Q: Is Mixue Group’s IPO performance sustainable?
A: While initial enthusiasm is high, long-term sustainability will depend on its ability to maintain low costs, expand profitably, and adapt to changing consumer preferences in lower-tier cities.
Q: What does the rise in short-selling ratios indicate?
A: Higher short-selling activity suggests growing skepticism among institutional investors about near-term market direction, especially after recent rallies.
Q: How might U.S. crypto regulation impact Asian markets?
A: Clearer U.S. rules can boost global investor confidence and often lead to capital inflows into related sectors abroad, including Hong Kong-listed crypto-linked equities.
Q: Are solar stocks a good long-term bet?
A: Yes—ongoing policy support, including plans for grid integration and distributed generation, positions solar energy as a strategic growth area through 2025 and beyond.
Q: Why did some EV stocks fall despite strong sales data?
A: Investors may be pricing in future margin pressure due to intense competition and aggressive discounting, even as delivery volumes remain robust.
👉 Get real-time updates on global financial movements shaping tomorrow’s markets