Hong Kong utility stocks demonstrated their defensive characteristics with an upward move against the broader market trend. At the time of writing, HK & China Gas (00003) advanced 1.72% to HK$7.69. Power Assets (00006) increased 0.96% to HK$63.40. HK Electric-SS (02638) rose 0.72% to HK$7.01. CLP Holdings (00002) gained 0.61% to HK$74.60. CKI Holdings (01038) added 0.61% to HK$66.15.

A HSBC Global Research report highlighted that empirical analysis confirms the Hong Kong utilities sector has consistently displayed defensive traits during periods of significant global conflict. The sector has reliably outperformed the broader market following such events, beating the Hang Seng Index by an average of 7% within 60 days after major incidents. Beyond typical safe-haven sentiment, the report noted the sector's core fundamentals remain solid, protected by regulatory frameworks and long-term contracts that shield it from macroeconomic uncertainties and disruptions.

Furthermore, fuel prices have surged following Iran's closure of the Strait of Hormuz. However, the report anticipates a minimal impact on sector earnings, as fuel costs for regulated utilities in Hong Kong, the UK, and Australia can be fully passed through to customer bills.