Tech Stocks In Hong Kong Extend Recent Losses, HKEX Reports Record Profit and Declares Second Dividend

Li Chen
27 Feb, 2025
Hong Kong

Stock market indexes in China and Hong Kong turned lower, and investors looked ahead to announcements from policymakers next week. 

The Hang Seng index decreased more than 1% and turned lower for the second consecutive session after reaching a three-year high last week. 

The CSI 300 index decreased 0.3% and extended losses in the week, as investors remained cautious ahead of the National People's Congress, the annual legislative meeting next week. 

After the weeklong meeting, policymakers are set to announce an economic growth target, fiscal deficit plans, and other key measures to support the economic expansion. 

Investors are looking forward to more clarity on the previously announced stimulus measures and how they will revive the flailing property market and bolster consumer confidence.

Mainland and foreign investors have been increasing exposure to tech stocks listed in Hong Kong amid expectations that the affordable artificial intelligence technology from DeepSeek could provide a boost to earnings. 

However, investors are also questioning the stretched valuations of Internet platform operators. 

 

China Indexes and Stocks 

The Hang Seng index declined 1% to 23,535.80, and the mainland-focused CSI 300 index dropped 0.3% to 3,950.66. 

Alibaba Group Holding decreased 2.4% to HK $133.60, Tencent Holdings declined 1.5% to $494.0, and Meituan dropped 2.7% to HK $169.70.

Xiaomi Corp. dropped 7.3% to HK $169.70, CATL advanced 0.2% to HK ¥269.21, and JD.com Inc declined 1.3% to HK $165.90.

Hong Kong Exchanges and Clearing Ltd. decreased 1% to HK $357.40 after the financial services provider reported earnings in line with expectations. 

Net income soared 10% to HK $13 billion from HK $11.9 billion, and earnings per share rose to HK $10.32.

The company reported record revenue and earnings in 2024 and announced a second interim dividend of HK $4.90.

Total dividend in the year increased to HK $9.26 from HK $8.41 in 2023, keeping the payout ratio to 90% of earnings.