FINWIRES · TerminalLIVE
FINWIRES

Hong Kong Stocks End Lower Amid Middle East Uncertainty; MTR Prices Inaugural Hong Kong Dollar Public Bond Offer

By

-- Hong Kong stocks closed lower Wednesday as markets questioned whether Iran and the U.S. were nearing a peace deal, even as President Donald Trump agreed to extend a truce with Tehran.

The Hang Seng Index fell by around 324.24 points, or roughly 1.2%, to end at 26,163.24, while the Hang Seng China Enterprises Index decreased by 141.76 points, or around 1.6%, to close at 8,801.78.

President Trump said the U.S. would refrain from renewing attacks on Iran until it came up with a unified proposal on a possible agreement, but that the U.S. navy would continue to maintain its blockade of the Strait of Hormuz. Iran previously refused to attend peace talks in Islamabad until the U.S. abandoned its policy of pressure and threats, Reuters reported.

It was also unclear whether talks in Islamabad would materialize as U.S. Vice President JD Vance had yet to depart Washington.

Meanwhile, a recent report from Fitch Ratings said agrochemical issuers in the Asia-Pacific were capable of cushioning against increased freight, fuel, and input costs due to the Middle East conflict, preventing near-term rating pressure.

Fitch expects supply chain disruption to not be impactful enough on the issuers' credit profiles in the near term, especially with operating flexibility and geographic diversification.

In corporate news, MTR (HKG:0066) priced its inaugural Hong Kong dollar public bond offer, also the largest in the Hong Kong market.

The public transport operator priced HK$18.8 billion in corporate green bonds, structured as a triple-tranche offering consisting of HK$8.3 billion in five year 2.88% notes; HK$7.5 billion in 10 year 3.30% notes; and HK$3 billion in 30 year 4% notes.

Related Articles

Research

Research Alert: Azn Q1 2026 Beat As Oncology Remains Strong; Reaffirms 2026 Guidance

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:AstraZeneca (AZN) posted 13% total revenue growth (+8% at constant exchange rates, CER) to USD15.3B in Q1 2026, beating consensus estimates of USD14.9B, with oncology remaining the key contributor (+16% CER). Imfinzi climbed 30% CER, supported by multiple new launches, while Enhertu grew 34% CER on continued global demand, with core operating margin remaining broadly stable Y/Y at 35% despite R&D (+8% CER) and SG&A (+7% CER) expense increases. We continue to like AZN for its strong pipeline and numerous key data readouts throughout 2026, supported by four positive Phase 3 trials and 14 regulatory approvals achieved since Q4 2025. AZN reiterated its 2026 guidance for mid- to high-single-digit revenue growth and low double-digit core EPS growth, with currency movements expected to provide modest support. We see this compelling dataset helping support its ambitious target to reach USD80B in total revenue by 2030, with guidance that is more favorable than peers like Novartis.

$AZN
Asia

China Southern Power Grid Energy Storage's Q1 Profit Jumps 21%, Revenue Rises 19%

China Southern Power Grid Energy Storage's (SHA:600995) net profit attributable to shareholders in the first quarter jumped 21% to 453.8 million yuan from almost 374 million yuan a year earlier, according to a Shanghai bourse filing on Wednesday.Earnings per share rose 17% year on year to 0.14 yuan from 0.12 yuan.Operating revenue inched 19% higher to 1.85 billion yuan from 1.56 billion yuan in the previous year.The Chinese state-owned power company's shares closed less than 3% higher.

$SHA:600995
Commodities

European Investment Bank to Advance Ukraine Infrastructure Projects, Including Energy

The European Investment Bank will provide advice on infrastructure development under the a project preparation initiative dubbed Ukraine First, which was created by the European Commission and European Bank for Reconstruction and Development, the EIB said on Tuesday.The EIB will seek to carry forward large-scale infrastructure plans into fully-fledged projects, including some in the energy sector, that are ready to seek financing and construction, it said in a statement.That preparatory work will include feasibility studies, technical design and environmental assessments, the EIB said.Initially, the bank's work will focus on the road network in southern Ukraine, while work will also take place on the restoration of critical infrastructure such as road, energy and railway networks.The EIB signed a deal in Kyiv with the Ukrainian Ministry of Economy, Environment and Agriculture, confirming the cooperation, it said, with a framework now in place for investment projects to take place as Ukraine pursues its ambition of EU membership."This agreement is an important step in supporting Ukraine's recovery and EU accession plans through well-prepared investments," said EIB Vice President Karl Nehammer. "Strong project preparation is essential to ensure that infrastructure investments are delivered efficiently, attract financing and meet European standards."Ukraine First stands for Facility for Infrastructure Reconstruction and it currently has 40 million euros ($46.8 million) in funding available.EIB Advisory will start work on the M15 highway that runs between Odesa in southern Ukraine to the Romanian border, providing a transport plan for the Odesa region and helping to modernize this key road.The EIB has since its 2007 arrival in Ukraine, provided more than 4 billion euros in project financing to the country.