On Wednesday, Hong Kong's stock market experienced a notable upswing, largely fueled by a rally in Chinese electric vehicle (EV) manufacturers and a rebound in technology stocks. The Hang Seng Index climbed by 0.3% to reach 23,402.05 during the noon trading break, recovering from its lowest close since early March. Meanwhile, the Hang Seng Tech Index saw a gain of 0.8%.

Over on the mainland, the CSI 300 Index remained relatively stable, while the Shanghai Composite Index rose modestly by 0.2%. Among the stars of the day were the Chinese EV maker Nio, which rose by 1% to HK$34.15. Nio's CEO, William Li, expressed optimism during a media briefing, indicating that the company anticipated breaking even in the fourth quarter of this year. Competitor Xpeng saw a notable recovery, climbing 1.7% to HK$81.15 after a 7.5% slump the previous day. Additionally, Li Auto, which is a key competitor to Tesla in China, surged 2.4% to HK$102.40.

The positive momentum in Hong Kong was reflected in global markets, with the US S&P 500 increasing by 0.2% on Tuesday, driven by technology shares as Tesla continued its impressive five-day ascent, gaining a total of 28%.

In remarks from Shanghai Shiva Investment's fund manager He Yan, the outlook for both Hong Kong and mainland markets appears stable, with investors adopting a watchful stance amid ongoing global geopolitical uncertainties. "The rally in the US provided some investors with renewed confidence to increase their investments in leading tech firms," Yan noted.

In a noteworthy development in Shenzhen, Contemporary Amperex Technology (CATL)—the world's top EV battery producer—saw a slight drop of 0.4% to 258.57 yuan. This followed approval from China's securities regulator for CATL's Hong Kong listing plan, which aims to raise US$5 billion to bolster its international presence. Analysts suggest this could be the largest share sale on the Hong Kong stock exchange in four years.

Interestingly, the Hong Kong capital markets are showing signs of recovery, with companies having raised over US$15 billion so far this year, compared to US$18.6 billion in 2024, according to Bloomberg's reports.

In Shanghai, SAIC Motor, a key partner of General Motors and Volkswagen in China, benefited from rumors of new EV models utilizing solid-state batteries, perceived as superior in reliability and safety. The company's stock rose by 1% to 15.4 yuan in morning trading.

The trend of recovery extended across the Asia-Pacific region, with Japan's Nikkei rising 0.6%, South Korea's Kospi climbing 0.8%, and Australia's S&P/ASX 200 advancing by 0.7%.

Stay tuned as we continue to monitor the dramatic shifts in the stock market and what they mean for investors and the global economy!