Hang Seng Index Today, February 24: Tech Drag as Turnover Tops HK$251B
Hang Seng Index today fell 1.8% to 26,590, while the Hang Seng Tech Index dropped 2.1%. Turnover swelled to about HK$251 billion as northbound funds returned, lifting activity across Hong Kong stocks. Internet leaders such as Meituan, Tencent, and Alibaba eased, but AI play Zhipu jumped after its GLM-5 launch. Elevated volumes and mixed sector signals point to rotation ahead of earnings and the Two Sessions in early March. We outline what drove moves, key risks, and a practical trading plan for the week.
Turnover spikes as tech drags
Turnover rose to about HK$251 billion as northbound funds returned via Stock Connect, even as benchmarks slipped. Broad participation hinted at active repositioning rather than forced selling. Value, defensives, and some chip names drew bids while internet majors softened. Local reports said mainland buying supported liquidity into the close source. Higher liquidity can magnify both rallies and pullbacks around earnings and policy headlines.
Large internet names including Meituan, Tencent, and Alibaba fell, weighing on growth sentiment as the Hang Seng Tech Index dropped 2.1%. In contrast, AI name Zhipu surged after launching GLM-5, highlighting sharp sector divergence. That mix pulled the Hang Seng Index today down 1.8% to 26,590 despite strong turnover. Post-close coverage flagged the split tone across growth and defensives source.
Sector rotation before earnings and policy cues
Semiconductors and utilities showed relative strength on better earnings visibility and steady cash flows. Utilities attracted buyers for dividend support during choppy trade. Chip-linked plays benefited from AI infrastructure demand and select policy hopes. The bid for defensives and semis, alongside weakness in platforms, suggests an ongoing rotation as traders position ahead of results and early March policy headlines that could shift growth leadership.
Into the Two Sessions in early March, we will watch signals on consumption support, AI and data infrastructure, fiscal stance, and property stabilization. Credible measures could steer northbound funds and reset valuation multiples. Company guidance during earnings will matter as much as reported numbers, especially on cost control, cash returns, and AI monetization plans across software and internet ecosystems in Hong Kong stocks.
Trading strategy for Hong Kong stocks now
We prefer liquid names with clear near-term catalysts such as earnings, buybacks, product launches, or regulatory approvals. Use staggered entries and avoid crowded trades lacking news flow. Focus on balance-sheet strength, positive free cash flow, and visible growth. In volatile sessions, set stop-loss levels and size positions conservatively to limit drawdowns while staying ready to add on signs of sustained institutional demand.
Track daily Stock Connect prints for direction. When northbound funds turn positive and market breadth improves, large-cap leaders often stabilize first. Flows can reverse quickly around events, so avoid chasing spikes. Watch opening and lunch auctions, block prints, and sector breadth. Combine flow data with catalysts, valuation, and earnings revisions to build conviction rather than using flows alone as a signal.
Key levels and portfolio risks to monitor
With the index at 26,590, traders often watch round numbers near 26,000 and 27,000 for sentiment shifts. Elevated turnover and sector splits can create whipsaws, so trim leverage and widen stops during data-heavy days. Use partial profit-taking on strength and define risk in advance. Options or inverse ETFs can hedge, but track costs and reassess positioning after each major policy headline and earnings print.
Key risks include policy disappointment at the Two Sessions, weak guidance from major internet platforms, renewed U.S. yield spikes, and softer China data. Offsetting supports include targeted fiscal measures, steady dividends in utilities, and AI-linked revenue traction. Maintain a balanced list across defensives, quality growth, and select AI or chip supply-chain names, and be ready to rotate as news and flows shift.
Final Thoughts
Hang Seng Index today closed at 26,590, down 1.8%, with the Hang Seng Tech Index off 2.1% even as turnover hit about HK$251 billion on returning northbound funds. The tape shows rotation: pressure on large internet platforms, resilience in utilities, and selective strength across semis and AI-linked names. Into earnings and the Two Sessions, we suggest a clear plan: prioritize liquid stocks with near-term catalysts, marry valuations with flow data, and size positions for volatility. Track daily Stock Connect flows, company guidance on cash returns and AI monetization, and early signals on consumption or property support. Keep a balanced list across defensives and quality growth, and be ready to shift as policy headlines and earnings land.
FAQs
What moved the Hang Seng Index today?
The index fell 1.8% to 26,590 as tech weakness outweighed strength in defensives and some chip names. Turnover rose to about HK$251 billion on returning northbound funds. Large internet platforms slipped, while AI play Zhipu jumped on its GLM-5 launch, highlighting notable sector divergence and active rotation.
How did the Hang Seng Tech Index perform?
It declined 2.1% as Meituan, Tencent, and Alibaba retreated, reflecting softer sentiment toward large platform stocks. The move came despite heavy turnover and stronger interest in semis and utilities. Stock selection remains key as investors weigh earnings catalysts and potential policy signals during the Two Sessions in early March.
Why do northbound funds matter for Hong Kong stocks?
Northbound funds link mainland investors to Hong Kong via Stock Connect. When flows turn positive, liquidity improves and large caps often stabilize first. But these flows can reverse quickly around events. We track daily net purchases, breadth, and block prints to gauge conviction rather than using flows as a standalone signal.
What should investors focus on this week?
Watch earnings and guidance on cash returns, costs, and AI monetization. Monitor policy hints tied to the Two Sessions that could affect consumption, property, or tech investment. Use a catalyst-and-liquidity approach, track northbound flows, and manage risk with defined stops and right position sizes to handle volatility.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.