Narrative Update • Jun 30
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Hong Kong (HSI) Market Analysis & Valuation
UpdatedJul 02, 2026
DataAggregated Company Financials
Companies2316
- 7D-2.9%
- 3M-10.4%
- 1Y-4.6%
- YTD-11.2%
Over the last 7 days, the market has dropped 3.2%, driven by a decline of 6.5% in the Financials sector. On the other hand, the Information Technology has risen by 4.2%. As for last year, the market is also down 3.8%. Earnings are forecast to grow by 13% annually.
Market Valuation and Performance
Has the Hong Kong Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 Jul 2026 | HK$51.1t | HK$44.7t | HK$4.2t | 11.3x | 12.2x | 1.1x |
| Sat, 30 May 2026 | HK$55.3t | HK$44.9t | HK$4.2t | 12.2x | 13.2x | 1.2x |
| Mon, 27 Apr 2026 | HK$57.3t | HK$44.5t | HK$4.1t | 12.6x | 13.8x | 1.3x |
| Wed, 25 Mar 2026 | HK$55.4t | HK$44.1t | HK$4.0t | 11.7x | 13.8x | 1.3x |
| Fri, 20 Feb 2026 | HK$57.1t | HK$43.9t | HK$4.0t | 12.6x | 14.3x | 1.3x |
| Sun, 18 Jan 2026 | HK$57.2t | HK$43.4t | HK$4.0t | 12.4x | 14.4x | 1.3x |
| Tue, 16 Dec 2025 | HK$55.4t | HK$42.9t | HK$3.9t | 12.2x | 14.1x | 1.3x |
| Thu, 13 Nov 2025 | HK$58.4t | HK$42.4t | HK$3.9t | 12.8x | 15x | 1.4x |
| Sat, 11 Oct 2025 | HK$56.6t | HK$42.8t | HK$3.9t | 12.6x | 14.5x | 1.3x |
| Mon, 08 Sep 2025 | HK$57.2t | HK$43.4t | HK$4.0t | 12.1x | 14.4x | 1.3x |
| Wed, 06 Aug 2025 | HK$55.5t | HK$43.5t | HK$3.9t | 12x | 14.3x | 1.3x |
| Fri, 04 Jul 2025 | HK$53.3t | HK$43.6t | HK$3.9t | 11.2x | 13.7x | 1.2x |
| Sun, 01 Jun 2025 | HK$50.2t | HK$43.5t | HK$3.9t | 11.1x | 13x | 1.2x |
| Tue, 29 Apr 2025 | HK$47.7t | HK$42.6t | HK$3.7t | 10.7x | 12.8x | 1.1x |
| Thu, 27 Mar 2025 | HK$48.5t | HK$43.7t | HK$3.6t | 10.9x | 13.5x | 1.1x |
| Sat, 22 Feb 2025 | HK$47.9t | HK$43.2t | HK$3.5t | 10.3x | 13.6x | 1.1x |
| Mon, 20 Jan 2025 | HK$43.4t | HK$42.6t | HK$3.6t | 9.9x | 11.9x | 1x |
| Wed, 18 Dec 2024 | HK$44.0t | HK$42.7t | HK$3.6t | 9.9x | 12.1x | 1x |
| Fri, 15 Nov 2024 | HK$43.1t | HK$42.8t | HK$3.6t | 9.7x | 11.8x | 1x |
| Sun, 13 Oct 2024 | HK$45.2t | HK$43.6t | HK$3.6t | 10x | 12.6x | 1x |
| Tue, 10 Sep 2024 | HK$38.6t | HK$43.5t | HK$3.6t | 8.8x | 10.8x | 0.9x |
| Thu, 08 Aug 2024 | HK$39.0t | HK$43.0t | HK$3.5t | 8.9x | 11.1x | 0.9x |
| Sat, 06 Jul 2024 | HK$41.0t | HK$42.6t | HK$3.5t | 9.4x | 11.8x | 1x |
| Mon, 03 Jun 2024 | HK$41.5t | HK$43.3t | HK$3.4t | 9.7x | 12.1x | 1x |
| Wed, 01 May 2024 | HK$40.7t | HK$43.3t | HK$3.4t | 9.3x | 11.9x | 0.9x |
| Fri, 29 Mar 2024 | HK$38.5t | HK$43.4t | HK$3.3t | 8.9x | 11.5x | 0.9x |
| Sun, 25 Feb 2024 | HK$38.5t | HK$43.8t | HK$3.4t | 8.9x | 11.3x | 0.9x |
| Tue, 23 Jan 2024 | HK$34.3t | HK$44.0t | HK$3.4t | 8.6x | 10.2x | 0.8x |
| Thu, 21 Dec 2023 | HK$37.3t | HK$45.9t | HK$3.5t | 9x | 10.7x | 0.8x |
| Sat, 18 Nov 2023 | HK$38.6t | HK$45.4t | HK$3.4t | 8.9x | 11.2x | 0.8x |
| Mon, 16 Oct 2023 | HK$39.3t | HK$45.0t | HK$3.4t | 9x | 11.5x | 0.9x |
| Wed, 13 Sep 2023 | HK$39.9t | HK$45.1t | HK$3.4t | 9.2x | 11.6x | 0.9x |
| Fri, 11 Aug 2023 | HK$41.8t | HK$45.7t | HK$3.7t | 9.7x | 11.4x | 0.9x |
| Sun, 09 Jul 2023 | HK$40.8t | HK$45.8t | HK$3.7t | 9.7x | 11.1x | 0.9x |
Price to Earnings Ratio
11.1x
Current Market PE
- Investors are relatively neutral on the Hong Kong market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 12.6x.
Past Earnings Growth
- The earnings for Hong Kong listed companies have grown 4.6% per year over the last three years, while revenues have remained steady.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Sector Trends
Which sectors have driven the changes within the Hong Kong Market?
| HK Market | -2.90% | |
| Healthcare | 2.17% | |
| Tech | 0.69% | |
| Telecom | -0.19% | |
| Real Estate | -2.02% | |
| Consumer Discretionary | -2.40% | |
| Industrials | -2.61% | |
| Consumer Staples | -3.44% | |
| Utilities | -3.49% | |
| Financials | -4.61% | |
| Energy | -6.06% | |
| Materials | -6.84% | |
Sector PE
- Investors favour the Real Estate sector the most for future growth, which is trading above its 3-year average PE ratio of 51.5x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 21.7% which is higher than its past year's earnings decline of 7.5% per year.
- The Financials sector is the least preferred by investors for future growth, which is trading close to its 3-year average of 7.1x.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 35% over the next 5 years.
- This is better than its past earnings growth rate of 9.8% per year.
- In contrast, the Utilities sector is expected to see its earnings grow by 4.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| 9999 NetEase | HK$202.40 | 9.1% +HK$53.8b | -2.8% | PE16.5x | Telecom | |
| 1347 Hua Hong Grace Semiconductor | HK$215.20 | 12.1% +HK$40.3b | 539.5% | PE661.6x | Tech | |
| 981 Semiconductor Manufacturing International | HK$89.40 | 5.4% +HK$36.9b | 105.3% | PE131.5x | Tech | |
| 1888 Kingboard Laminates Holdings | HK$99.15 | 6.0% +HK$17.6b | 927.5% | PE127.3x | Tech | |
| 522 ASMPT | HK$238.80 | 18.9% +HK$15.9b | 317.1% | PE77.1x | Tech |