On Wednesday, the Hang Seng Index advanced by 141 points, or 0.6%, closing at 23,654. This marks the second consecutive day of gains, fueled by optimism surrounding an upcoming discussion between U.S. President Trump and China’s Xi Jinping that may ease trade tensions. Additionally, a critical deadline is approaching for U.S. trading partners to propose alternatives to circumvent significant tariffs scheduled to be implemented in five weeks.
Hong Kong's healthcare sector led the rally, rising approximately 3% as investors showed confidence in the earnings potential of innovative pharmaceutical companies. Notably, Innovent Biologics saw a significant surge of 13.8%, with CSPC Pharma, Hansoh Pharma, and Wuxi Biologics following suit, with increases of 2.8%, 2.6%, and 1.6%, respectively. Xiaomi also experienced a slight uptick after its CEO indicated that the company's electric vehicle division might become profitable by the second half of 2025.
However, gains were moderated by apprehensions over the commencement of Trump’s 50% steel tariff today, coupled with anticipation surrounding the Chinese services data for May. Previously, in April, service sector activity had expanded at its slowest rate in seven months. Other significant movements included Smoore International rising by 12.1%, Pop Mart International gaining 4.6%, and Meituan increasing by 2.9%.
