Hong Kong stocks experienced divergent movements on April 21, with the Hang Seng Index closing higher while the Hang Seng Tech Index edged down, showing clear sector rotation. The Hang Seng Index closed at 26,487.48 points, up 0.48% (+126.41 points); the Hang Seng Tech Index closed at 5,061.50 points, down 0.08% (-4.13 points); the HSCEI rose 0.50%. The total daily turnover was HKD 205.177 billion, lower than the previous day.

In terms of market performance, hardware, electrical equipment, coal, and tea beverage sectors led the gains: Contemporary Amperex Technology Co. Limited (CATL) rose over 4% to hit a record high, China Shenhua Energy Company Limited rose over 3%; Hushang Auntie surged nearly 15%, Mixue Group rose over 5%; Shenghong Technology surged over 50% on its first trading day. Pharmaceutical, defense, and steel sectors weakened, with Pegasus Biopharma falling over 13% 36Kr. Technology and internet stocks diverged, with Meituan and Xiaomi posting slight gains, while Alibaba saw a small decline.

In terms of capital flows, Southbound capital recorded a net purchase of HKD 3.738 billion, with domestic capital providing support. The market is supported by expectations of geopolitical negotiations, but the momentum for tech stocks remains weak. In the short term, the Hang Seng Index faces resistance at 26,500 points and support at 26,300 points, while the Tech Index is closely watched at the 5,000-point level, with the volatile pattern expected to continue.