Hong Kong’s Hang Seng Has Soared 21% Since Trump’s Reelection
Life has shuttered Wall Street’s doors of profit yet opened a window of opportunity for Hong Kong. The city’s Hang Seng benchmark has risen 21% since Trump took office, emerging as the world’s top-performing major index. This dramatic shift marks the widest performance gap between Hong Kong and US markets since the Dotcom bubble burst in 2000, driven by China’s unexpected AI breakthroughs and mounting concerns over US economic stability.
- Chinese investors poured a record HK$29.6B ($3.8B) into Hong Kong shares on Monday, the highest single-day inflow since trading links with mainland exchanges began in 2016.
- Alibaba has led the tech rally with a 65% surge since January, committing $53B to AI infrastructure development.
The tide is turning: Major financial institutions are repositioning their portfolios to capitalize on this shift. Citigroup upgraded China to overweight while downgrading US equities, and HSBC cut US stocks to neutral, citing there are “better opportunities elsewhere.” Goldman Sachs even dubbed US tech leaders the “Maleficent 7” while slashing S&P 500 targets. As Trump’s policies create market uncertainty and China embraces its tech renaissance, Hong Kong’s $6T bourse appears poised for continued growth.
