Hong Kong stocks rebounded strongly in the morning session, with the Hang Seng Index rising 446 points or 1.86% to close the first half at 24,476 points. The rally was driven by chip stocks following strong performance in US chip equities, which offset negative sentiment from renewed US-Iran military conflicts that saw US markets close higher overnight, including a 1% gain in the Nasdaq. The Hang Seng Index recovered from the previous day's 169-point decline, opening 183 points higher before briefly weakening to a 34-point gain, then surging to a peak increase of 469 points at 24,499 points before settling.
Hang Seng Index Gains 446 Points in Morning Session
The Hang Seng Index opened 183 points higher at 24,213 points, with the gain briefly narrowing to just 34 points before buyers stepped in. Driven by tech stocks, the index accelerated its upward momentum, reaching a peak gain of 469 points at 24,499 points, encountering resistance at the 24,500-point level. Near midday, the index maintained gains exceeding 400 points, closing the morning session at 24,476 points, up 446 points or 1.86%.
The Hang Seng China Enterprises Index rose 145 points or 1.83% to 8,143 points, while the Hang Seng Tech Index outperformed with a gain of 127 points or 2.69% to 4,858 points. Market turnover for the morning session reached HK$188.435 billion, with northbound capital recording a net inflow of HK$2.183 billion.
Among blue-chip stocks, Hong Kong Exchanges and Clearing (00388) rose 2.5% to HK$390, HSBC Holdings (00005) gained 1.4% to HK$154.4, and AIA Group (01299) increased 1.9% to HK$73.7. CK Hutchison Holdings (00001) surged 7.7% to HK$70.1, making it the strongest-performing blue chip in the morning session. Lenovo Group (00992) climbed 4.7% to HK$25.18. Contemporary Amperex Technology (03750) fell 2.3% to HK$623, marking it as the worst-performing blue chip.
Chip Stocks Rally on US Market Strength
Chip stocks rallied following strong performance in US chip equities. SMIC (00981), which rose over 10% the previous day, gained an additional 3.9% in the morning session to HK$86.8. Hua Hong Semiconductor (01347) surged 7.1% to HK$216.2, and ASM Pacific Technology (00522) rose 2% to HK$4.04.
Tech Stocks Post Mixed Performance
Major tech stocks displayed predominantly positive performance. Alibaba Group (09988) rose 3.6% to HK$111.9 in the morning session. Tencent Holdings (00700), amid reports of negotiations to become the largest shareholder in Chinese AI startup Manus, declined 0.5% to HK$467.2. Meituan (03690) gained 1.5% to HK$79.7, Baidu (09888) rose 3.1% to HK$118, and Xiaomi (01810) climbed 4.6% to HK$26.16. JD.com (09618) increased 3.3% to HK$111.2, while NetEase (09999) fell 1.4% to HK$209.6. Kuaishou Technology (01024) advanced 3.7% to HK$43.64.
AI Stocks Decline on Fundraising Announcements
AI stocks moved lower following fundraising activities. Zhipu AI (02513), which announced a share placement and surged over 11% the previous day, retreated 11.8% in the morning session to HK$1,792. MiniMax (00100), which announced plans for a share placement at nearly 10% discount alongside convertible bond issuance to raise a combined HK$16 billion, fell as much as 16.1% in early trading to a low of HK$249.6. The stock closed the morning session down 12.3% at HK$260.8, falling below the HK$260 placement price.
Individual Stock Highlights Show Divergent Moves
WuXi-related stocks attracted buying interest. WuXi AppTec (02359) rose 6.2% to HK$158.3, WuXi Biologics (02269) gained 5.5% to HK$39.1, and WuXi XDC (02268) increased 3.4% to HK$61.4.
Han's CNC Technology (03200), which forecast interim net profit growth exceeding 2.4 times, rose 4.5% in the morning session to HK$151.5.
New Listings Display Mixed First-Day Performance
Two new stocks debuted with contrasting performances. Nexchip Semiconductor (02249), a professional wafer foundry, rose 1.2% in the morning session to HK$32.68. Binhua Group (06745), a chemical products manufacturer, fell 12.4% to HK$3.05.
FAQ
What drove Hong Kong stocks higher in the morning session?
Hong Kong stocks rose primarily due to chip stock rallies following strong performance in US chip equities, which offset negative sentiment from renewed US-Iran military conflicts. The Hang Seng Index gained 446 points or 1.86% to 24,476 points, with the Hang Seng Tech Index outperforming with a 2.69% gain.
How did chip stocks perform in the morning session?
Chip stocks rallied strongly, with SMIC gaining an additional 3.9% to HK$86.8 after rising over 10% the previous day, Hua Hong Semiconductor surging 7.1% to HK$216.2, and ASM Pacific Technology rising 2% to HK$4.04, driven by strength in US chip stocks.
Why did AI stocks decline despite the broader market rally?
AI stocks declined following fundraising announcements. Zhipu AI fell 11.8% to HK$1,792 after announcing a share placement, while MiniMax dropped 12.3% to HK$260.8, falling below its HK$260 placement price, after announcing plans to raise HK$16 billion through a discounted share placement and convertible bond issuance.
