Hong Kong's three major stock indices all moved higher during the morning session. By the midday break, the Hang Seng Index had climbed 2.02% to 24,739.86 points. The Hang Seng Tech Index advanced 1.72%, and the Hang Seng China Enterprises Index rose 2.03%.
Sector Performance Overview
The technology and internet sector saw broad-based gains. Key players including JD.com, Alibaba, Bilibili, Kuaishou, and Xiaomi all rose by over 2%. The non-ferrous metals sector surged significantly, with CMOC Group Limited (HKG: 3993) soaring more than 12%. Chinese brokerage stocks were among the top gainers, with CITIC Securities jumping over 6%. Airline stocks also rebounded, with China Eastern Airlines rising more than 6%.
Non-Ferrous Metals Sector Surge
The non-ferrous metals sector experienced a sharp rally, led by CMOC Group Limited's gain exceeding 12%. Analysts point to three key narratives shifting the sector from a commodity story to a strategic asset story. First, signals of a potential ceasefire in the Middle East have helped repair risk appetite, with gold returning to around $4,200 per ounce. Former US President Trump's signal of an imminent US-Iran peace deal has notably eased pressure on the denominator for macro-sensitive metals like copper and aluminum. Second, SK Hynix's move to use molybdenum instead of tungsten has opened a new incremental market for AI storage. The company has completed verification for 375-layer 3D NAND production, with the key technological highlight of this iteration being the use of molybdenum for word lines, creating a fresh demand driver for the metal from AI storage. Third, production restrictions in resource countries coupled with new demand from AI and military applications are leading to a "purchase restriction and price hike" dynamic for minor metals like tungsten.
Chinese Brokerages Lead Gains
Chinese brokerage stocks were prominent gainers, with CITIC Securities climbing over 6%. Brokers are continuing to bolster their international operations. Guotai Junan Securities has reviewed and passed a proposal to inject 9 billion yuan in capital into its wholly-owned subsidiary, Guotai Junan Financial Holdings. CITIC Securities plans a private placement of 16 billion yuan in the Hong Kong market to its major shareholder, CITIC Financial Holdings, with all proceeds earmarked for developing international business. Since the start of the year, several major brokerages including GF Securities and Huatai Securities have successively completed capital increases for their subsidiaries, indicating that Chinese brokers' global expansion is entering a new phase of deeper advancement.
Airlines Rebound on Cost Relief
Airline stocks rebounded, with China Eastern Airlines rising more than 6%. The sudden announcement by former US President Trump to cancel planned airstrikes against Iran, coupled with his revelation that negotiations on Iran had gained multi-party principled approval, led to a sharp drop in international oil prices. This development is expected to significantly alleviate cost pressures for airlines. The International Air Transport Association had previously forecast that global airline fuel costs would rise from $252 billion in 2025 to $350 billion in 2026.
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