[ET Net News Agency, 25 June 2025] Although the ceasefire between Israel and Iran still faces some complications, it is expected not to hinder the overall progress. Meanwhile, Federal Reserve Chair Jerome Powell, in his appearance before the House of Representatives on Tuesday, stated that there is no urgency to cut rates but did not rule out the possibility of a rate cut in July. US equities moved higher, and the HSI maintained its upward momentum after breaking through the 24,000 level. At midday, the HSI stood at 24,362, up 185 points or 0.8 percent, approaching the 11 Jun high of 24,400 during the session. Main board turnover exceeded HKD 129.9 billion. The Hang Seng China Enterprises Index was at 8,820, up 59 points or 0.7 percent. The Hang Seng Tech Index stood at 5,340, up 42 points or 0.8 percent.
"Nip Chun Pong: HSI needs turnover to challenge highs"
With tensions in the Middle East easing and overseas markets performing well, Hong Kong stocks have risen for four consecutive days. The HSI opened 150 points higher this morning and was up as much as 251 points at its intraday peak of 24,428, close to the 11 Jun high of 24,439. Nip Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net News Agency that as the Israel-Iran conflict has eased, global market sentiment has improved, supporting continued gains in Hong Kong stocks. However, HSI's upward movement also needs to be matched by strong turnover. The HSI rose 487 points yesterday on turnover of HKD 240 billion. If the rally continues today and tomorrow, and turnover remains around HKD 240 to 250 billion, the index could challenge this year's high of 24,874, or even 25,000, in July. Nip noted that in March, the HSI closed above 24,000 on six trading days, with turnover around HKD 300 billion. Therefore, whether the current rally can be sustained depends largely on the level of turnover.
Nip added that after four consecutive days of gains, with the HSI rising as much as 1,191 points, some investors may decide to take profits. In the short term, the index may consolidate at higher levels, and while further gains are possible, the pace is likely to slow. Still, there are not many negative factors in the market at the moment, so any pullback from the highs is not expected to be significant. In addition, the National Development and Reform Commission recently stated that it will announce measures to stabilise employment and the economy at the end of June, which should provide some support for the HSI. Furthermore, Mainland China continues to introduce new policies to stimulate consumption. The Ministry of Commerce recently organised a "New Energy Vehicle Consumption Season" across thousands of counties and towns, fuelling a rally in new energy vehicle stocks. Nip expects similar initiatives will continue to be rolled out, benefiting various consumer sectors. Therefore, even if the market pulls back, support is likely around the 23,800 level.
"Property market recovery sees real estate stocks outperform; outperformance over the past two months"
Financial Secretary Paul Chan recently noted that the local property market had already adjusted by 28 percent from its historical peak in September 2021 to April this year. With interest rates now stable and trending lower, mortgage rates have also fallen, and he described the property market as having "stabilised" at current levels. Property stocks performed strongly today, with Hang Lung PPT (00101) rising five percent, ranking among the top three blue-chip gainers for much of the session. SHK PPT (00016) and Wharf REIC (01997) both rose more than four percent at their highs. Debt-laden New World Dev (00017) even surged as much as nine percent. Nip Chun Pong noted that although the HSI has rebounded from post-tariff war lows over the past two months, the rebound in property stocks has been even stronger. For example, SHK PPT and Wharf REIC have both risen about 44 percent from their April lows to today's highs, Henderson Land (00012) has gained nearly 57 percent, while the HSI's maximum gain over the same period was only 27 percent.
As for the strong performance of property stocks, Nip believes it is mainly due to a recovery in the property market, driven by a wealth effect from the buoyant stock market. In addition, since the government removed cooling measures last year and introduced the Top Talent Pass Scheme, there has been pent-up purchasing power in the market. Expectations of future rate cuts have also improved sentiment in the property market. Nip said the chance of a Federal Reserve rate cut in July is not high, as the Fed has stressed the need to observe inflation data for a longer period, and with only one more inflation reading before July, a decision is unlikely before more data is available. However, the overall trend for US interest rates remains downward, fuelling expectations and driving property stocks higher. Recent bullish calls from major brokers have also helped, with Bank of America favouring landlords such as Hysan (00014) and Wharf REIC. Among property stocks, Nip believes CK Asset (01113) also deserves attention. The stock has only risen about 33 percent over the past two months, suggesting it has potential to catch up.
"Nip Chun Pong: HSI needs turnover to challenge highs"
With tensions in the Middle East easing and overseas markets performing well, Hong Kong stocks have risen for four consecutive days. The HSI opened 150 points higher this morning and was up as much as 251 points at its intraday peak of 24,428, close to the 11 Jun high of 24,439. Nip Chun Pong, the Chief Strategist at Blackwell Global Securities, told ET Net News Agency that as the Israel-Iran conflict has eased, global market sentiment has improved, supporting continued gains in Hong Kong stocks. However, HSI's upward movement also needs to be matched by strong turnover. The HSI rose 487 points yesterday on turnover of HKD 240 billion. If the rally continues today and tomorrow, and turnover remains around HKD 240 to 250 billion, the index could challenge this year's high of 24,874, or even 25,000, in July. Nip noted that in March, the HSI closed above 24,000 on six trading days, with turnover around HKD 300 billion. Therefore, whether the current rally can be sustained depends largely on the level of turnover.
Nip added that after four consecutive days of gains, with the HSI rising as much as 1,191 points, some investors may decide to take profits. In the short term, the index may consolidate at higher levels, and while further gains are possible, the pace is likely to slow. Still, there are not many negative factors in the market at the moment, so any pullback from the highs is not expected to be significant. In addition, the National Development and Reform Commission recently stated that it will announce measures to stabilise employment and the economy at the end of June, which should provide some support for the HSI. Furthermore, Mainland China continues to introduce new policies to stimulate consumption. The Ministry of Commerce recently organised a "New Energy Vehicle Consumption Season" across thousands of counties and towns, fuelling a rally in new energy vehicle stocks. Nip expects similar initiatives will continue to be rolled out, benefiting various consumer sectors. Therefore, even if the market pulls back, support is likely around the 23,800 level.
"Property market recovery sees real estate stocks outperform; outperformance over the past two months"
Financial Secretary Paul Chan recently noted that the local property market had already adjusted by 28 percent from its historical peak in September 2021 to April this year. With interest rates now stable and trending lower, mortgage rates have also fallen, and he described the property market as having "stabilised" at current levels. Property stocks performed strongly today, with Hang Lung PPT (00101) rising five percent, ranking among the top three blue-chip gainers for much of the session. SHK PPT (00016) and Wharf REIC (01997) both rose more than four percent at their highs. Debt-laden New World Dev (00017) even surged as much as nine percent. Nip Chun Pong noted that although the HSI has rebounded from post-tariff war lows over the past two months, the rebound in property stocks has been even stronger. For example, SHK PPT and Wharf REIC have both risen about 44 percent from their April lows to today's highs, Henderson Land (00012) has gained nearly 57 percent, while the HSI's maximum gain over the same period was only 27 percent.
As for the strong performance of property stocks, Nip believes it is mainly due to a recovery in the property market, driven by a wealth effect from the buoyant stock market. In addition, since the government removed cooling measures last year and introduced the Top Talent Pass Scheme, there has been pent-up purchasing power in the market. Expectations of future rate cuts have also improved sentiment in the property market. Nip said the chance of a Federal Reserve rate cut in July is not high, as the Fed has stressed the need to observe inflation data for a longer period, and with only one more inflation reading before July, a decision is unlikely before more data is available. However, the overall trend for US interest rates remains downward, fuelling expectations and driving property stocks higher. Recent bullish calls from major brokers have also helped, with Bank of America favouring landlords such as Hysan (00014) and Wharf REIC. Among property stocks, Nip believes CK Asset (01113) also deserves attention. The stock has only risen about 33 percent over the past two months, suggesting it has potential to catch up.