Hang Seng Index Hits Seven-Week High of 23,828

Key Moments:

Broad Market Gains Led by Technology, Consumer, and Mining Stocks

Markets in Hong Kong and mainland China closed higher on Wednesday, with the Shanghai Composite Index edging 0.21% higher by the end of trading hours. The CSI 300 also rose, climbing 0.5% to 3,916.3807. The Hang Seng Index advanced the highest by gaining 146 points, a climb of 0.6% that resulted in a closing figure of 23,827.79. This marked the highest finish in round two months and extended the gains achieved during yesterday’s trading session.

Every sector posted gains, with tech stocks emerging on the top during the rally alongside property and consumer equities. The buying momentum was partly fueled by a bullish outlook from Morgan Stanley that resulted in upgraded targets as the bank emphasized structural improvements in China’s economy. Focus was also placed on signs of progress when it comes to trade policies and corporate earnings.

Gold Rally Boosts Mining Names, Electric Vehicle Sector Soars on CATL Momentum

Gold prices touched a one-week high, prompting renewed interest in mining shares. Zijin Mining was among the top performers, rising 7.5% in Hong Kong and 5.9% on the SSE. Cobalt mining leader CMOC Group gained 3% on investor enthusiasm as, according to sources cited by Reuters, the company has urged the Democratic Republic of Congo to lift its ban on cobalt exports.

In the EV sector, battery manufacturer Contemporary Amperex Technology Co Ltd (CATL) extended its momentum from Tuesday’s strong debut, rallying another 9% in Hong Kong trading on Wednesday. Meanwhile, its onshore shares on the Shenzhen Stock Exchange jumped 10.2%. Fellow battery stock Gotion High Tech also surged 10%. EV producers were also buoyant, with Li Auto rising 3.8%, while Geely Auto climbing 2.6%.

Strength in related tech and pharma names added support. Notable gainers were Wuxi Biologics, which jumped 2.1%, while Hansoh Pharmaceutical’s own 1.4% climb saw the stock close higher.