Hong Kong's three major indices ended Wednesday's session in negative territory. The Hang Seng Index slipped 0.39% to close at 25,213.31, while the Hang Seng Tech Index dropped 1.08% and the Hang Seng China Enterprises Index declined 0.77%.
Tech stocks broadly weakened, with XIAOMI-W, Alibaba, NetEase, and KUAISHOU-W all falling more than 2%. Meanwhile, mainland property developers showed notable strength, with RongXin China surging over 7%. Oil-related shares retreated, as China Oilfield Services dropped more than 4%, and storage-related stocks also moved lower, with the CSOP Leveraged Product tracking Samsung Electronics losing over 2%.
The property sector's resilience came as secondary market data from key Chinese cities signaled a recovery. According to statistics from Beijing Lianjia Research Institute, Shanghai Centaline Property, and Shenzhen Beike Research Institute, Beijing has recorded positive year-on-year growth for six consecutive months, Shanghai posted its strongest performance for the same period in five years, and Shenzhen saw actual contract signings surge 12% month-on-month.
Adding to the positive sentiment, Beijing unveiled a comprehensive package of real estate reform policies on August 28, covering housing sales systems, credit management, trusts, capital markets, urban renewal, and commercial properties. The measures aim to establish a complete institutional framework for the new development model of the property sector.
On the oil services front, China Oilfield Services fell more than 4% following a research note from Morgan Stanley. The investment bank stated that while the company's contract drilling business experienced a moderate operating environment amid high oil prices, its oilfield services and marine operations underperformed expectations. Combined with foreign exchange losses, the firm trimmed its 2026 earnings forecast by 5%. Morgan Stanley also anticipates potential oil price adjustments next year, which could pressure day rates and operating days for drilling operations. The bank further cut its 2027 and 2028 earnings estimates by 8% and 5%, respectively.
In the semiconductor space, the leveraged product tracking Samsung Electronics dropped over 2%. The move came after South Korea's presidential office responded to comments made by U.S. Commerce Secretary Howard Lutnick regarding semiconductor tariffs. A presidential office official stated that specific details have not yet been finalized, and the government will work to prevent any negative impact on Korean companies. The official added that Seoul will closely monitor related developments and maintain close communication with Washington to ensure Korean businesses remain unaffected.