Hong Kong stocks closed on April 29: Hang Seng Index surged 1.68%, regaining the 26,000-point level, with mainland property and insurance leading gains, while small-cap stocks diverged sharply.

On April 29, Hong Kong stocks staged a strong rebound, with all three major indices closing higher. The Hang Seng Index regained the key 26,000-point level. At the close, the Hang Seng Index was at 26,111.84 points, up 432.06 points or 1.68%; the Hang Seng Tech Index was at 4,910.02 points, up 82.83 points or 1.72%; the Hang Seng China Enterprises Index performed the strongest, closing at 8,805.60 points, up 1.8%. Main board trading was active throughout the day, with total turnover reaching HK$258.281 billion. The implementation of favorable policies significantly boosted market risk appetite.

At the sector level, mainland property, insurance, and large-cap tech stocks were the core engines for the long side. Mainland property stocks were stimulated by the Politburo meeting's statement on "stabilizing the real estate market and promoting urban renewal," collectively surging in the afternoon. China Jinmao surged 11.33%, while China Resources Land and China Overseas Land & Investment rose over 6%. Property management stocks followed suit, with strong expectations of policy support. The insurance sector soared across the board, with Ping An of China surging 6.08% for the day, and China Taiping and China Life Insurance rising over 5%. Low valuations coupled with stable earnings attracted heavy capital allocation, becoming a core weight driving the index higher. Most large-cap tech stocks rebounded, with Meituan-W up 3.55%, Alibaba-SW and Bilibili-SW up over 3%, and Kuaishou-W up 2.93%. Only Baidu Group-SW closed slightly down 2.76%. Auto stocks performed notably, with Nio-SW up 8.74% and BYD Company up 4.44%, benefiting from expectations for the "15th Five-Year Plan" for new energy vehicles.

Individual stock divergence was extreme, with both new listings skyrocketing and small-cap stocks plummeting. Sunmi Technology-W, which listed today, skyrocketed 241.11% on its debut, with its public offering oversubscribed by 2,003 times, igniting sentiment for secondary new shares and small-cap stocks. On the losers' side, Yongtai Bio-Medicine-B plunged 53.95%, and Aowei Holdings fell 35.8%. Multiple small-cap stocks faced a stampede of capital outflows due to liquidity drying up or negative news, warranting continued caution. Additionally, the semiconductor sector weakened against the trend, with Hua Hong Semiconductor down 4.59% and SMIC down 0.38%, showing clear sector rotation characteristics.

In terms of market sentiment, Hong Kong stocks exhibited a "policy-driven, heavyweight-led, small-cap divergent" pattern. Last night's stable overseas markets, combined with the Politburo meeting's signal of steady growth, prompted funds to flow back from defensive sectors to high-growth sectors, opening up valuation repair space for mainland property and insurance stocks. In the short term, market trading may remain active before the holiday, with funds focusing on policy-beneficiary themes. Going forward, close attention should be paid to the realization of mainland economic data, the recovery of mainland property sales, and changes in overseas liquidity, while remaining vigilant about small-cap stock volatility and the risk of pullback in high-priced stocks.$Hang Seng Index(00HSI.HK) $Hang Seng TECH Index(STECH.HK) $Hang Seng China Enterprises Index(HSCEI.HK) $SUNMI TECH-W(06810.HK)$IMMUNOTECH-B(06978.HK)