[ET Net News Agency, 15 May 2026] The heads of state of China and the US are currently having a bilateral tea break and will hold a bilateral luncheon, with Trump expected to depart for home in the afternoon. The market believes that the Xi -Trump meeting this time has released few positive factors. For instance, the number of Boeing passenger planes purchased by China was lower than expected, and the plan to mutually reduce tariffs on USD 30 billion dollars of non-critical sector commodities is only at the consideration stage, blowing a bearish wind to the stock market. In addition, Mainland China credit data for April was seriously distorted, with new loans unexpectedly shrinking, far below the expected increase of RMB 300 billion, dragging down A shares to fall by more than 1% at one point. Hong Kong stocks fell this morning, with the HSI reporting 26,160 at midday, down 229 points or 0.9%. The Hang Seng China Enterprises Index reported 8,759, down 98 points or 1.1%. The Hang Seng Tech Index reported 5,012, down 63 points or 1.3%. The midday turnover of the Main Board exceeded HKD 151.1 billion, and the net inflow of southbound capital exceeded HKD 7.5 billion to support the market.
"Overseas markets performed well but failed to boost Hong Kong stocks, southbound capital took profits"
US President Trump held talks with President Xi Jinping yesterday, and the atmosphere of the meeting was good. However, confidence in Hong Kong stocks was insufficient. The HSI surged first and then retraced sharply yesterday, and opened 1 point higher today before immediately reversing downward. Kwok Ka Yiu, the Director of Business Development at Harbour Family Office, told ET Net News Agency that although overseas US stocks continued to hit historical highs and the atmosphere of the Xi-Trump meeting was also good, Hong Kong stocks could not benefit from the positive news for the time being. Coupled with a net outflow of about HKD9.7 billion in southbound capital yesterday, it reflects that the market situation currently tends to take profits. He continued that although the performance of technology stocks announced recently was not bad, it was not enough to support the upward trend of the broader market, resulting in a weak market trend. Kwok Ka Yiu expects the HSI trend to be soft in the short term, with greater resistance to rushing to the 27,000 mark. It may hover at the 26,000 level in the short term, while there is stronger support near 25,500.
Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, mentioned that the performance of A shares has weakened in the past two days, indirectly dragging down the broader market. Compared with US stocks, Hong Kong stocks lack large scale technology leaders to support the broader market, leading to the weak performance of Hong Kong stocks in the past two days.
"Positive signals for Mainland China economy still exist, Mainland China life insurers and Mainland China banks took the opportunity to correct"
The People's Bank of China announced yesterday that new RMB loans in April decreased by RMB 10 billion, turning negative again after a lapse of 9 months, and the new social financing was RMB 620 billion, which was also much worse than expected. The Mainland China banking sector fell across the board, with CCB (00939) falling 1% and ICBC (01398) falling 1.7%. The Mainland China life insurance sector generally slumped, with Ping An (02318) falling 1.5%, China Taiping (00966) falling 0.18%, and China Life (02628) flat.
Kwok Ka Yiu pointed out that the market would inevitably feel disappointed with the loan data, but since recent Mainland China CPI, PPI, and property market data all reflected positive signs of recovery in the Mainland China economy. He believed that as long as the trend continued, there was no need to worry too much about subsequent economic performance ups and downs again.
Regarding the softening of the Mainland China banking sector today, Kwok Ka Yiu believed that it was mainly a correction taking advantage of the situation. Although the sector generally fell by about 1%, it had accumulated a certain amount of gains earlier and is currently in a high level correction phase. He pointed out that the dividend yield of Mainland China banks is still close to 5% at present, which is still attractive compared with Mainland China long term bonds and deposit interest rates, and is suitable for passive dividend capital allocation. The trends of the four major banks are roughly similar. He suggested that they can be absorbed in stages at this stage. Although the stock price growth is expected to be limited, it can still provide a high single digit return from the perspective of dividends.
The Mainland China life insurance sector also experienced a correction today, which Kwok Ka Yiu also regarded as an adjustment taking advantage of the situation. He mentioned that the first quarter performance of many Mainland China life insurance companies exceeded expectations, with strong growth in new business value. Coupled with the continuous inflow of Mainland China capital into protection type products, it provides positive support for the future business growth of the sector.
In terms of valuation, Kwok Ka Yiu believed that the Mainland China life insurance sector is already attractive at present. Among them, China Life (02628) fell back from its previous high of HKD 35 to 36 to near HKD 29. The current price is close to the 20 day moving average (about HKD 28.75) support, which can be considered for buying in stages, with an upside target looking at the HKD 36 level first.
"Overseas markets performed well but failed to boost Hong Kong stocks, southbound capital took profits"
US President Trump held talks with President Xi Jinping yesterday, and the atmosphere of the meeting was good. However, confidence in Hong Kong stocks was insufficient. The HSI surged first and then retraced sharply yesterday, and opened 1 point higher today before immediately reversing downward. Kwok Ka Yiu, the Director of Business Development at Harbour Family Office, told ET Net News Agency that although overseas US stocks continued to hit historical highs and the atmosphere of the Xi-Trump meeting was also good, Hong Kong stocks could not benefit from the positive news for the time being. Coupled with a net outflow of about HKD9.7 billion in southbound capital yesterday, it reflects that the market situation currently tends to take profits. He continued that although the performance of technology stocks announced recently was not bad, it was not enough to support the upward trend of the broader market, resulting in a weak market trend. Kwok Ka Yiu expects the HSI trend to be soft in the short term, with greater resistance to rushing to the 27,000 mark. It may hover at the 26,000 level in the short term, while there is stronger support near 25,500.
Cheung Chi Wai, a joint managing director at Prudential Brokerage Ltd, mentioned that the performance of A shares has weakened in the past two days, indirectly dragging down the broader market. Compared with US stocks, Hong Kong stocks lack large scale technology leaders to support the broader market, leading to the weak performance of Hong Kong stocks in the past two days.
"Positive signals for Mainland China economy still exist, Mainland China life insurers and Mainland China banks took the opportunity to correct"
The People's Bank of China announced yesterday that new RMB loans in April decreased by RMB 10 billion, turning negative again after a lapse of 9 months, and the new social financing was RMB 620 billion, which was also much worse than expected. The Mainland China banking sector fell across the board, with CCB (00939) falling 1% and ICBC (01398) falling 1.7%. The Mainland China life insurance sector generally slumped, with Ping An (02318) falling 1.5%, China Taiping (00966) falling 0.18%, and China Life (02628) flat.
Kwok Ka Yiu pointed out that the market would inevitably feel disappointed with the loan data, but since recent Mainland China CPI, PPI, and property market data all reflected positive signs of recovery in the Mainland China economy. He believed that as long as the trend continued, there was no need to worry too much about subsequent economic performance ups and downs again.
Regarding the softening of the Mainland China banking sector today, Kwok Ka Yiu believed that it was mainly a correction taking advantage of the situation. Although the sector generally fell by about 1%, it had accumulated a certain amount of gains earlier and is currently in a high level correction phase. He pointed out that the dividend yield of Mainland China banks is still close to 5% at present, which is still attractive compared with Mainland China long term bonds and deposit interest rates, and is suitable for passive dividend capital allocation. The trends of the four major banks are roughly similar. He suggested that they can be absorbed in stages at this stage. Although the stock price growth is expected to be limited, it can still provide a high single digit return from the perspective of dividends.
The Mainland China life insurance sector also experienced a correction today, which Kwok Ka Yiu also regarded as an adjustment taking advantage of the situation. He mentioned that the first quarter performance of many Mainland China life insurance companies exceeded expectations, with strong growth in new business value. Coupled with the continuous inflow of Mainland China capital into protection type products, it provides positive support for the future business growth of the sector.
In terms of valuation, Kwok Ka Yiu believed that the Mainland China life insurance sector is already attractive at present. Among them, China Life (02628) fell back from its previous high of HKD 35 to 36 to near HKD 29. The current price is close to the 20 day moving average (about HKD 28.75) support, which can be considered for buying in stages, with an upside target looking at the HKD 36 level first.
