Cooling expectations of Fed rate hikes boost market sentiment, average price of second-hand homes in 100 cities fell 0.42% month-on-month in June.
Hong Kong Stock Market Trends and Analysis
The US stock market was closed for a holiday last Friday, while European markets performed well across the board. The US dollar remained weak, gold prices continued to rebound from lows, and oil prices stabilized with some fluctuations. The Hang Seng Index futures saw little change overnight, and the market is expected to lack clear direction in early trading. Mainland Chinese stocks performed well last Friday, with the Shanghai Composite Index opening lower and closing 0.4% higher. The trading volume in both markets continued to exceed 3 trillion RMB. Hong Kong stocks extended their rebound, with market sentiment boosted by cooling expectations of a Fed rate hike. The index opened higher last Friday, briefly surging to the 23,500-point level before the gains slightly softened. It still closed higher, with active trading volume. Blue-chip stocks generally rose, financial stocks mostly performed well, tech and internet stocks rose first and then retreated, and metal stocks showed strong performance. With overall sentiment improving and favorable interest rate trends, Hong Kong stocks are expected to continue their rebound. The index may test the resistance level at 24,000 points, with support near 23,000 points.
Sector News
A report from the China Index Academy shows that due to ongoing price adjustments in most cities, the average price of second-hand homes in 100 cities fell 0.42% month-on-month in June, with the decline widening by 0.1 percentage points compared to May. Among them, 12 cities saw price increases, while 88 cities saw decreases. Among core cities, Shanghai's prices rose 0.1% month-on-month, marking the fourth consecutive month of increase; Shenzhen's prices rose 0.03% month-on-month. For new homes, the average price in 100 cities rose 0.16% month-on-month and 2% year-on-year in June, continuing the structural upward trend. The China Index Academy expects that, nationwide, new home sales in the second half of the year will still be in a bottoming phase. However, due to the low base effect, the year-on-year decline is expected to gradually narrow. Second-hand home transaction volume is expected to remain at a certain scale, and with stabilized listing volumes and resilient demand support, prices are likely to fluctuate narrowly overall. The report points out that in the second half of this year, new home transactions in core cities are expected to see marginal improvement driven by the continuous entry of high-quality projects and policy support. However, structural differentiation will further intensify, with market recovery mainly concentrated in high-quality sectors and "good house" projects. The mainland real estate market shows significant differentiation. A recent central government article mentioned that the contraction of household balance sheets has an adverse impact on consumption. The market is watching for the central government to introduce measures to stabilize the property market, thereby driving investment and consumption recovery.
Guo Jiayao CFA, Business Development Director, Harbor Family Office
Date: Saturday, July 4, 2026
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