Hong Kong stocks edged higher in Wednesday's session, with the Hang Seng China Enterprises Index delivering the strongest performance among the three major benchmarks. The securities sector remained robust throughout the day, buoyed by strong interim earnings reports from listed brokers and announced dividend plans, which lifted related ETFs collectively. Meanwhile, oil and gas stocks weakened as expectations for the resumption of Strait of Hormuz shipping gained traction.
The Hang Seng Index closed up 0.56% at 25,652.97 points, with total turnover reaching HK$254.824 billion. The Hang Seng Tech Index advanced 0.82% to 4,626.15 points. Among the largest Hong Kong-listed ETFs by assets, Tracker Fund of Hong Kong (02800) rose 0.46% to HK$26.14, CSOP Hang Seng Tech Index ETF (03033) gained 0.76% to HK$4.532, and Hang Seng China Enterprises Index ETF (02828) fell 1.13% to HK$85.9.
Brokerage stocks dominated the session as the interim earnings season validated strong performance across the sector. Listed brokers that have reported results generally posted simultaneous growth in both revenue and net profit, while multiple leading institutions unveiled interim dividend proposals totaling nearly HK$17 billion, serving as a direct catalyst for the rally. By the close, HK Securities ETF E Fund (513090.SH) jumped 3.72% to 1.894 yuan, Broker ETF Huabao (512000.SH) climbed 2.75% to 0.523 yuan, and Securities ETF Guotai (512880.SH) advanced 2.72% to 1.096 yuan.
According to China Post Securities, current market trading activity remains resilient, while margin financing balances have bottomed out and begun recovering, signaling improved sentiment among leveraged investors. Combined with a stable low-interest-rate monetary environment, ample liquidity provides a degree of certainty for brokerage earnings performance. Founder Securities added that increased market turnover is driving rapid growth in brokerage commissions and net interest income, while wealth management businesses maintain a solid foundation. The firm sees attractive repair opportunities for the sector driven by both earnings growth and valuation re-rating.
Oil-related products came under pressure as expectations for shipping normalisation in the region grew. F Samsung Crude Oil Futures (03175) dropped 4.45% to HK$9.995, Energy & Chemical ETF CCB (159981.SZ) declined 4.92% to 1.508 yuan, and S&P Oil & Gas ETF Fullgoal (513350.SH) slipped 1.98% to 1.288 yuan. On August 25, Iran and Oman issued a joint statement confirming discussions on establishing a temporary joint shipping corridor and conducting mine-clearing operations in the strait, fueling market expectations for a gradual resumption of Strait of Hormuz shipping and prompting a rapid unwinding of previously accumulated geopolitical risk premiums.
Donghai Futures noted that new Middle East diplomatic efforts have revived optimism that the Iran conflict will not escalate, while the US plan to intensify economic pressure on Iran has not yet resulted in stricter measures against the country's trading partners. Pakistan's Army Chief concluded a visit to Iran, with Iranian media describing the visit as yielding valuable outcomes. While oil prices have retreated in the near term, the scope for significant further declines appears limited, with prices likely to remain in a wide range-bound pattern.
Everbright Securities highlighted in its analysis that US Treasury yields deteriorated further in August, with the 2-year yield falling 13 basis points to 4.24% over the past month while the 30-year yield rose 10 basis points to 5.27%. The short end reflects pricing for a more dovish monetary policy stance, while the long end prices in fiscal supply pressures, geopolitical risks, and inflation uncertainty. The systematic elevation of the global risk-free rate floor is reshaping valuation logic across asset classes, with high-valuation growth assets facing notable headwinds.
Looking ahead to September, Everbright Securities recommends shifting from short-term speculative trading to left-side sector positioning, suggesting a barbell allocation strategy combining dividend defensive holdings, resource exposure as a hedge, and technology growth as an offensive component. Gold and copper rank highest among metal preferences, offering attractive risk-reward profiles. Global central bank gold purchases and dollar credit erosion underpin gold's long-term floor, while industrial metals benefit from supply constraints and new demand from AI-driven electrification. High-dividend defensive sectors including banks, telecommunications, utilities, power grids, and non-bank financials provide safety margins amid elevated long-end US Treasury yields.
In ETF developments, HK Stock Connect Financial ETF Penghua (158000.SH) made its market debut, closing 0.2% lower at 1.018 yuan with turnover of 122 million yuan. The fund tracks the CSI HK Stock Connect Mainland Financial Index, a sector-specific ETF investing exclusively in mainland financial stocks accessible via Stock Connect, focusing on core financial segments such as banks, insurance, and brokerages.