Hong Kong stocks experienced choppy trading on August 13, but the Hang Seng Tech Index staged a remarkable afternoon rally, closing in positive territory. The Hang Seng Index ended the session at 25,396.51 points, down 43.66 points or 0.17%, while the Hang Seng Tech Index rose 15.95 points or 0.33% to 4,792.39 points.
The tech index's strength was mainly fueled by Lenovo Group (HK: 00992), which posted blockbuster quarterly results at midday, triggering a sharp rally in its stock. After the afternoon trading session opened, Lenovo Group shares surged, eventually closing at HK$34.90, a gain of 20.18%, setting a new all-time high. Year-to-date, Lenovo Group has accumulated a gain of 291%.
According to the announcement, for the first fiscal quarter of the 2026/2027 fiscal year, Lenovo Group reported revenue of US$26.943 billion (approximately RMB 183.4 billion), a year-over-year increase of 43%. Adjusted net profit reached US$1.075 billion (approximately RMB 7.3 billion), soaring 176% from the same period last year. The Infrastructure Solutions Group (ISG) posted revenue of RMB 57.9 billion, up 98% year-on-year, with an operating profit of approximately RMB 5.3 billion, also up 98%, and an operating margin of 9.1%. The backlog of AI server orders surged from RMB 140 billion in the previous quarter to RMB 360 billion.
Lenovo Group Chairman and CEO Yang Yuanqing commented, "AI has been integrated into our products, services, operations, and innovation. It is not only creating value for our customers but also driving our process restructuring as well as tangible business and profit growth." Citigroup, in its latest research report, maintained a "Buy" rating for Lenovo Group, citing strong server demand prospects and profitability, along with stable performance in the PC, mobile phone, and services businesses.
In other sectors, internet and technology stocks were mostly lower, with Tencent falling over 4% and Bilibili dropping over 2%. Gold stocks declined, with Lingbao Gold down more than 9%. Mainland property stocks weakened, with Shimao Group falling over 8%. On the capital flow front, southbound net purchases of Hong Kong stocks exceeded HK$3.6 billion by the close, ending a streak of several consecutive days of net selling.
Market Outlook
CICC (China International Capital Corporation) recently noted that the "A to H" listing wave in recent years has been attracting an increasing number of "hard tech" leaders from A-shares to list in Hong Kong, thereby improving the overall landscape of the Hong Kong market. The recent consultation paper issued by Hang Seng Indexes Company on proposed changes to the methodology for compiling the Hang Seng Tech Index aligns well with this trend. The revisions aim to not only expand the index's coverage by increasing the number of constituent stocks but also to more closely reflect the latest market developments by optimizing and restructuring thematic classifications. Furthermore, the proposed changes introduce a novel "market cap + revenue growth" two-tier stock selection mechanism for the Hong Kong market. These optimizations could collectively shift the Hang Seng Tech Index from its previous focus on "large and beautiful" companies to a more inclusive approach, allowing many currently fast-growing but smaller-capitalization companies to be included. This would make the index more representative of the market and in line with global technology development trends.
Guotai Junan Hai Tong Asset Management pointed out that the Hang Seng Tech Index has seen a maximum retracement of 31% since its peak in October 2025, suggesting that pessimistic expectations have been fully priced in. The index is now in a "medium-high reward + high certainty" window for tactical allocation. Morgan Stanley indicated that the period from late July to August is a critical window for a sustained recovery in Chinese equities, reiterating that now is a favorable time to re-allocate to Hong Kong stocks.
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