Hong Kong Market Midday Update: Hang Seng Index Drops 1.98% Below 25,000, Tech Index Falls 4.04% as Tech and Semiconductor Stocks Sink

Deep News12:13

Hong Kong's three major stock indices were all in negative territory during the morning session.

By the midday break, the Hang Seng Index had declined by 1.98% to settle at 24,514.29 points. The Hang Seng Tech Index recorded a sharper drop of 4.04%, while the Hang Seng China Enterprises Index fell 2.42%.

Market Sector Performance

Technology and internet stocks saw widespread declines. Shares of Meituan-W (03690.HK) dropped over 6%, while Kuaishou Technology (01024.HK) and Bilibili Inc (09626.HK) both fell more than 5%.

PCB (Printed Circuit Board) concept stocks were under pressure, with Kingboard Laminates Holdings Ltd (01888.HK) leading the losses, down over 9%. The company recently issued its sixth official price increase notice since 2026 to all its channel customers, announcing that new orders will be subject to a new pricing system effective immediately.

Semiconductor stocks were among the worst performers. GigaDevice Semiconductor (603986.SH) fell more than 8%. This decline followed a sharp sell-off in U.S. chip stocks overnight, where memory chip concepts led the downturn. SK Hynix Inc dropped over 13%, SanDisk fell more than 12%, Seagate Technology declined 10%, Western Digital Corp was down over 9%, and Micron Technology Inc lost more than 5%.

Innovative drug concept stocks also weakened, with WuXi XDC Cayman Inc (02268.HK) shedding over 9%. An analyst report from July 15th noted that in terms of industry dynamics, the trend of out-licensing deals for innovative drugs remains strong, with Chinese firms excelling in global advanced fields like ADC and bispecific antibodies, deeply embedded in the global supply chain. On the performance front, the domestic late-stage pipeline is expanding, supported by both national reimbursement negotiations and an expanded essential medicines list, ushering in a golden period for earnings realization. Regarding funding, valuations for Hong Kong-listed stocks have hit a bottom, with foreign selling pressure nearing its end and southbound capital increasing allocations, indicating a recovery in global sentiment towards the pharmaceutical sector.

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