Hong Kong's benchmark stock indexes all traded lower by midday on August 31st. The Hang Seng Index slipped 0.71% to 25,402.36 points, the Hang Seng Tech Index fell 1.03%, and the Hang Seng China Enterprises Index dropped 0.3%.
In sector moves, technology counters were sluggish, with Bilibili Inc sinking over 3%. In contrast, mainland bank shares showed resilience, with Postal Savings Bank of China rallying more than 7%. Gold-related stocks were broadly lower, as Tongguan Gold Group tumbled more than 10%. Meanwhile, mainland property developers opened stronger but weakened during the session, with China Jinmao Holdings Group Ltd plunging over 14%.
Mainland banks were the standout performers, led by Postal Savings Bank of China gaining over 7%. This strength follows the release of interim results for 2026 from the country's six largest state-owned lenders. The disclosures reveal that all six banks posted positive revenue growth in the first half, with CCB and Agricultural Bank of China achieving double-digit growth rates. Furthermore, there are signs that their net interest margins are stabilizing, primarily due to lower liability costs from the repricing of deposits. According to Zhongtai Securities, the narrowing negative contribution from interest margins is the biggest factor behind the improving revenue momentum.
Gold mining equities faced selling pressure, with Tongguan Gold dropping over 10%. This comes after Federal Reserve Chair Kevin Warsh delivered his first major policy speech at the Jackson Hole global central bank symposium on August 28. He clearly reiterated a firm commitment to the 2% inflation target and cautioned that if inflation does not fall back "clearly and quickly enough," the Fed still has work to do. His remarks fanned expectations for higher short-term interest rates, causing international gold prices to retreat, with spot gold briefly losing the $4,400 per ounce mark.
The property sector saw a high opening fade into weakness, with China Jinmao dropping over 14%. This comes amid a flurry of significant policy announcements for the industry. On August 28, the Ministry of Housing and Urban-Rural Development, Ministry of Natural Resources, and National Financial Regulatory Administration jointly issued a notice to promote the sale of completed homes in an orderly manner. Concurrently, the People's Bank of China and the National Financial Regulatory Administration introduced new guidelines for real estate credit, extending the maximum term for individual housing loans from 30 years to 40 years, offering greater flexibility to both lenders and borrowers. Additionally, the China Securities Regulatory Commission issued new measures to support listed property developers in refinancing and mergers and acquisitions, aiming to foster a new development model within the sector.