HUTRAHK@EC2612A

CT IND GROUP

KEEN OCEAN

EPI (HOLDINGS)

MOBI DEV

MS CONCEPT

NANFANG COMM

CCOE

HK ENT INTL

IDT INT'L

PUTIAN COMM

07200

02800

07500

03115

00HSI

513600

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Hong Kong has recorded a HK$2.9 billion consolidated surplus for the 2025-26 financial year, reversing an expected HK$67 billion deficit. This improvement is attributed to a strong IPO market and bond sales, with analysts optimistic about future surpluses due to a stabilizing property market and increased corporate profits. The government anticipates a surplus of HK$22.1 billion for 2026-27, supported by significant fund transfers. However, concerns about the legitimacy of counting bond proceeds as revenue persist, with experts emphasizing the importance of proper fund allocation.

- Strong IPO performance and bond sales have helped Hong Kong's finances recover to a surplus earlier than expected, with projections indicating robust listing activity will be key to sustaining this surplus.  
- The Financial Secretary reported a comprehensive surplus of approximately HK$ 2.9 billion for 2025-26, in contrast to the anticipated deficit of HK$ 67 billion, driven by increased transaction volumes and listing activities.  
- Anticipated income transfers are expected to positively affect the surplus for 2026-27, positioning debt growth as manageable while emphasizing the necessity of strategic fund utilization for sustainability.

南华早报

FL2 CSOP HSI

TRACKER FUND

FI2 CSOP HSI

ISHARESHSI

Hang Seng Index

China Southern Hang Seng ETF

FI CSOP HSI

Hong Kong records HK$2.9 billion consolidated surplus for 2025-26. Here’s how

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On the settlement day of Hong Kong stock index futures, the Hang Seng Index fell by 384 points to 26,381 points, the National Index dropped by 220 points, and the Hang Seng Tech Index decreased by 151 points. Technology, automotive, consumer, and pharmaceutical stocks generally declined, with Alibaba down 3.6% and Baidu down 4.3%. CKI Holdings sold UKPN, and its stock price rose by 4.5%. Financial stocks showed mixed performance, with HSBC Holdings up 1.6%, while domestic insurance stocks generally fell. The total market turnover was HKD 259.277 billion

AASTOCKS

Baidu

HSBC HOLDINGS

BABA-W

CKI HOLDINGS

Guotai CSI 800 Automobile and Parts ETF

CSOP HS TECH

ChinaAMC CSI Auto Components Thematic ETF

Tianhong Hang Seng TECH ETF(QDII)

Hwabao CSI HK Equities Internet ETF

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

HFT CSI Auto Components Thematic ETF

China Southern Hang Seng ETF Feeder Fund-A

HSTECH ETF

E Fund HSCEI ETF

ChinaAMC Hang Seng Technology ETF(QDII)

BABA 2x Long Daily ETF - GraniteShares

HSCEI ETF

E Fund CSI HK Connect Internet ETF

"Hong Kong Stocks" Hang Seng Index futures settlement day closed down 384 points, with declines in technology, automotive, consumer, and pharmaceutical stocks

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Hong Kong Exchanges & Clearing (HKEX) reported a record year, with a 15% increase in net profit to HK$4.335 billion and revenue rising 15% to HK$7.31 billion in Q4. The city hosted 119 new listings, raising HK$286.9 billion, driven by a tech rally and the AI boom. The Hang Seng Index rose nearly 30%, and the IPO pipeline remains strong with over 400 applications. Despite expected volatility in 2026, HKEX remains optimistic about investor interest in Asian assets and plans to modernize its infrastructure.

marketscreener

Hong Kong Exchanges and Clearing (HKEX)

HKEX

CSOP HSI ETF

HKEX Has Record Year as Hong Kong Reclaims IPO Crown -- Update

The short selling amount in the Hong Kong stock market reached HKD 18.81 billion in the first half of the day, accounting for 17.6% of the total turnover of shortable stocks. The main shorted stocks include TRACKER FUND with a short selling ratio of 45.3% and a short selling amount of HKD 1.88 billion; CSOP HS TECH with a short selling ratio of 44.6% and a short selling amount of HKD 1.59 billion; XL II CSOP HS TECH with a short selling ratio of 72.3% and a short selling amount of HKD 520 million; AGX National Index with a short selling ratio of 82.7% and a short selling amount of HKD 510 million; HSBC HOLDINGS with a short selling ratio of 20.6% and a short selling amount of HKD 500 million

The short selling in the Hong Kong stock market for half a day reached HKD 18.81 billion, accounting for 17.6% of the total turnover of shortable stocks

STECH

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On February 26, Hong Kong's Hang Seng Index opened over 200 points higher but reversed to a decline, falling 0.39% to 26,661.20 points. The Hang Seng Tech Index dropped 1.65%. Market turnover reached HKD 130.935 billion. Sectors like power and commercial aerospace gained, while lithium battery and biopharmaceutical sectors declined. Notable stock movements included CK Asset Holdings up 2.32% and CK Hutchison Holdings up 3.79%, following the sale of CK Hutchison's UK power grid business for over HKD 110 billion. Technology stocks showed weak performance overall.

CoinLive

Hang Seng TECH Index

CK Hutchison Holdings

CAM HS TECH

STOCKS | Hong Kong's Hang Seng Index Declines Amid Market Volatility

S&P Global stated that Hong Kong's public financial situation is robust enough to support a large infrastructure plan. A deficit of about 3% is expected in the fiscal year 2025, and about 2% in the fiscal year 2026. Despite a decline in land sale revenues, strong profits tax and an active stock market have restored operational accounts to surplus. Chinese enterprises seeking to list in Hong Kong are driving IPO growth, which is expected to boost stamp duty revenue. The government plans to invest heavily in the Northern Metropolis project, and while the overall fiscal balance remains in deficit, the deficit rate is expected to decrease to 1.8% from fiscal years 2026 to 2029. Fiscal reserves are expected to start increasing by the end of the fiscal year 2025

S&P: The improvement in Hong Kong's public finances is sufficient to support the massive infrastructure plan

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The Urban Renewal Authority will receive a funding of HKD 300 million to launch an enhanced "Tendering Assistance" service aimed at reducing the risk of collusion in building maintenance projects. It is expected to use no more than HKD 100 million as initial funding to support the establishment of the new service framework and platform, and to provide financial assistance to property owners. The Urban Renewal Authority is discussing specific measures with the Development Bureau, planning to implement the new service in the second half of the year to continue supporting the citizens of Hong Kong

ChinaAMC Hang Seng ETF

Urban Renewal Authority: Will allocate at least HKD 100 million as startup funds to provide enhanced "Tendering Services"

The government announced in the "Fiscal Budget" that it will continue to promote Hong Kong as a regional intellectual property trading center, focusing on investments including funding for technology and innovation support centers, expanding the patent examination team, and establishing an intellectual property academy. Partner at MinterEllison, Richard Yu, welcomed this, believing that these measures will attract technology companies. Although the effects may take years to manifest, it is an important step in enhancing Hong Kong's recognition as an intellectual property trading hub

Morrison & Foerster: The government continues to promote Hong Kong's development as a regional intellectual property trading center, which will attract more technology companies

The Hong Kong Trade Development Council welcomes the government's financial budget, which allocates HKD 200 million to the BUD Special Fund to support small and medium-sized enterprises and economic transformation. The Trade Development Council will work in conjunction with the government's policies to promote the development of Hong Kong as an international financial center and an innovation technology hub, expand global markets, and assist enterprises in achieving digital transformation and enhancing competitiveness. The financial budget also mentioned strengthening financial services for the real economy and promoting cross-industry collaboration

The Trade Development Council: The government injects HKD 200 million into the BUD Special Fund to support Hong Kong's SMEs and emphasize economic transformation and high-quality development

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Sun Yu, Vice Chairman and President of BOC Hong Kong, welcomed the new "Fiscal Budget" and believed that the measures in the budget would promote financial services to the real economy and advantageous industries, attract international funds, enhance market liquidity, and consolidate Hong Kong's position as a hub between the mainland and international markets. The budget will also support mainland enterprises in expanding overseas markets, promote high-quality economic growth in Hong Kong, and increase investment in the Northern Metropolis construction to meet diversified financial service needs, bringing new growth opportunities for the banking industry

WP CSI Banks ETF

GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF

E Fund CSI 300 Financials (ex Banks) ETF

Hwabao WP CSI Banks ETF

Guotai CSI All Share Investment Banking & Brokerage ETF

ChinaAMC SSE Financials Sector ETF Initiating Fund

China Merchants CSI BANK AH Price ETF

ChinaAMC CSI Banks ETF

BOCOM INTL

Huaan CSI Banks ETF

Fullgoal CSI 800 Banks ETF

Hwabao WP CSI All Share Investment Banking & Brokerage ETF

BOC HONG KONG

China Southern CSI Banks ETF

Yinhua CSI All Share Investment Banking & Brokerage ETF

BOC Hong Kong: The budget proposal helps promote better financial services for the real economy and advantageous industries

Hong Kong's finance chief unveiled a robust budget with a HK$2.9 billion surplus, marking a shift towards a more active government role in the economy. The government plans to dip into the Exchange Fund for infrastructure projects, including the Northern Metropolis megaproject. This budget reflects a departure from laissez-faire policies, aligning with national goals and increasing government investment in innovation. Analysts suggest these changes could benefit the city, despite concerns over rising debt levels and potential impacts on credit ratings.

- The Financial Secretary of Hong Kong revealed a surprisingly strong budget with a surplus, utilizing major funds for infrastructure initiatives.  
- A notable shift includes the rare use of the Foreign Exchange Fund for funding significant projects, aligning with national goals and increasing the government’s economic role.  
- The budget forecasts a projected surplus over the next five years, reflecting Hong Kong's regained position in global fundraising markets and enhanced investment in innovation-driven projects.

Budget reveal: government turns matchmaker with stronger hand in shaping economy

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Hong Kong plans to withdraw HK$150 billion from its currency peg defence fund for the first time in 40 years to finance the development of a technology hub. This withdrawal, pending approval, will support infrastructure projects in the Northern Metropolis. The Exchange Fund, which ensures the stability of the Hong Kong dollar against the US dollar, reported a record gain of HK$331 billion last year. The Hong Kong Monetary Authority assures that the transfer will not affect the fund's ability to maintain currency stability.

Businesstimes News

A CSOP HKD MM-R

A CSOP HKD MM

Hong Kong to tap peg defence fund for first time in 40 years

Hong Kong's home prices have reached a 19-month high, with a 0.53% month-on-month increase in January, continuing a recovery that began in Q2 2025. Rents also rose by 0.3%, setting a new peak. Analysts expect the residential market to remain strong in 2026, with transaction volumes projected to increase by over 20%, returning to historical peak levels. This recovery follows a 3.25% increase in home prices in 2025, ending a three-year downturn. The rent index has also hit a record high, reflecting ongoing demand and market resilience.

Hong Kong’s home prices reach 19-month high as rise gathers pace

HUTRAHK@EC2612A(25403.HK)

Hong Kong records HK$2.9 billion consolidated surplus for 2025-26. Here’s how

"Hong Kong Stocks" Hang Seng Index futures settlement day closed down 384 points, with declines in technology, automotive, consumer, and pharmaceutical stocks

HKEX Has Record Year as Hong Kong Reclaims IPO Crown -- Update

The short selling in the Hong Kong stock market for half a day reached HKD 18.81 billion, accounting for 17.6% of the total turnover of shortable stocks

STOCKS | Hong Kong's Hang Seng Index Declines Amid Market Volatility