Hong Kong's three major indexes all fell on Wednesday, with the Hang Seng Tech Index dropping nearly 2%. The Hang Seng Index closed 1.1% lower, or 284.67 points, at 25,652.82, with total turnover reaching HKD 210.942 billion. The Hang Seng China Enterprises Index fell 1.09% to 8,528.1, while the Hang Seng Tech Index declined 1.93% to 4,824.42. CICC attributed the retreat to the fact that the recent rally was driven more by "relative attractiveness" amid high valuations, overcrowding, and volatility in tech stocks, rather than "absolute attractiveness" from strong earnings growth. With valuations and sentiment having returned to mean levels, the "risk-reward ratio" naturally declines without earnings improvement.
Among blue-chip stocks, CNOOC Ltd (00883) led the gains, rising 3.59% to HKD 24.24, contributing 20.01 points to the index. The rally followed a sharp 5% rebound in international oil prices after talks over the Strait of Hormuz stalled, with both sides hardening their positions. Brent crude is now approaching the $90 mark again. Other blue-chip gainers included BeiGene Ltd (06160), up 2.63% to HKD 218.8, contributing 10.35 points, and Haidilao International Holdings (06862), up 2.09% to HKD 11.72, contributing 0.7 points. On the downside, Laopu Gold Co Ltd (06181) fell 8.49% to HKD 362, dragging the index by 3.3 points, while Zijin Mining Group Co Ltd (02899) dropped 5.8% to HKD 35.38, dragging the index by 20.02 points.
In sector performance, major tech internet stocks mostly turned red, while oil and gas concepts bucked the trend with CNOOC rising over 3%. The innovative drug sector remained active, with Jacobio Pharmaceuticals Group Co Ltd (01167) surging over 11% after a profit alert. MLCC stocks saw a rush for materials, with Sanchuan Group (06951) surging over 9%. Some robot concept stocks rose on the back of sentiment sparked by Unitree Technology's subscription. Conversely, the commercial aerospace sector broadly fell after the launch of the Zhuque-3 Y2 rocket was delayed. U.S.-Iran negotiation stalemate pushed oil prices higher, weighing on airline stocks. Gold stocks retreated from highs, with Lingbao Gold Group Co Ltd (03330) falling over 8%.
Oil stocks rally on geopolitical tensions
CNOOC (00883) rose 3.59% to HKD 24.24, PetroChina Co Ltd (00857) gained 1.78% to HKD 9.735, and COSL Drilling (02883) added 1.51% to HKD 7.08. The U.S.-Iran nuclear talks face new uncertainty, with oil prices surging over 5% on Monday. Brent crude is now approaching $90 again. U.S. President Trump indicated that he has instructed negotiators to seek compensation from Iran after the country demanded war reparations, while Iran stated it will not negotiate with the U.S. until Trump's term ends. Last week, the U.S. Strategic Petroleum Reserve fell by 6.1 million barrels to 298.7 million barrels. Guosen Securities noted that geopolitical turmoil in the Middle East has significantly reduced global crude supply stability, and the summer demand peak combined with low inventory levels amplifies price elasticity, providing strong profit potential for upstream oil and gas companies.
Pharmaceutical sector remains active
Jacobio Pharmaceuticals (01167) surged 11.53% to HKD 5.465, CStone Pharmaceuticals (02616) rose 11.32% to HKD 5.95, and Zai Lab Ltd (09688) gained 5.28% to HKD 18.53. Zhongtai Securities believes that since 2026, China's innovative drug industry has gradually entered a value realization phase. The sector's logic is shifting from reliance on BD event catalysts to overseas commercialization, clinical data delivery, and sustained revenue contributions. After a period of adjustment, the CXO industry is seeing improving demand. Recent AI-driven drug development has seen continuous industrial catalysts, with AI models improving capabilities, data accumulation, and R&D integration, enhancing application value in drug discovery, clinical development, and life science research. Upstream sectors like life science tools, biological models, and experimental platforms benefit from recovering innovation R&D demand.
Gold stocks lead declines
Chifeng Jilong Gold Mining Co Ltd (06693) fell 6.01% to HKD 36.92, Zijin Mining (02899) dropped 5.8% to HKD 35.38, and Shandong Gold Mining Co Ltd (01787) declined 4.83% to HKD 22.48. Spot gold experienced a sharp intraday decline, falling from a high of $4,434 per ounce in early trading to below $4,360. On Monday, U.S. and Brent crude oil prices continued to climb in the U.S. evening session, supported by uncertainty over the reopening of the Strait of Hormuz and ongoing tensions in the Middle East. This intensified concerns about rising U.S. inflation risks. Meanwhile, Cleveland Fed President Beth Hammack indicated that the Fed may need multiple rate hikes to bring inflation down to its 2% target. Market attention is now focused on the U.S. July CPI data to be released tomorrow evening.
Commercial aerospace sector under pressure
Goldwind Science & Technology Co Ltd (02208) fell 7.99% to HKD 10.25, Jiangsu Deyi Chemical Co Ltd (02865) dropped 6.05% to HKD 17.24, and APT Satellite Holdings Ltd (01045) declined 3.98% to HKD 2.17. According to Yicai Global, sources confirmed that LandSpace's Zhuque-3 Y2 rocket launch, originally scheduled for the morning of August 11, has been postponed. Earlier, the temporary airspace closure at the Jiuquan Satellite Launch Center was set from 7:40 AM to 8:27 AM Beijing time on August 11, 2026. Additionally, CCTV News reported that on August 10 at 8:02 PM, the launch of the Zhongxing 4B satellite using a Long March 7A rocket from the Wenchang Space Launch Site experienced an anomaly, resulting in mission failure. The specific cause is under investigation.
Key stock movers
Jacobio Pharmaceuticals (01167) surged after a profit alert, closing up 11.53% to HKD 5.465. The company expects a net profit of at least RMB 600 million for the first half of the year, marking its first profit. This is mainly attributed to revenue from a global strategic licensing collaboration with AstraZeneca for JAB-23E73 (pan-KRAS), and from licensing and service agreements with Shanghai Allist for Aireka (KRAS G12C) and sitneprotafib.
Sanchuan Group (06951) remained strong throughout the day, closing up 9.62% to HKD 117.4. Strong AI demand is boosting the passive component market, with MLCCs seeing a rush for materials. Some customers are paying 2-3 times the price to secure supplies from major passive component manufacturers like Yageo and Murata. Yageo acknowledged that MLCC demand is indeed very strong, with capacity utilization, new customer projects, and long-term contracts all indicating sustained market heat.
Shengbang Semiconductor Co Ltd (03661) performed well, closing up 8.09% to HKD 98.2. According to Chip World, analog chip giant ADI has issued a price increase notice, adjusting prices across its entire product portfolio, effective September 13, 2026. Everbright Securities previously noted that the analog chip industry is entering a price hike cycle, and Shengbang Semiconductor, as China's leading analog chip company ranked eighth globally in 2025 and first domestically, is poised to benefit from the industry's upcycle.
Impro Precision Industries Ltd (01286) rallied in the afternoon, closing up 5.29% to HKD 9.055. The company released its interim results midday, showing revenue of HKD 3.018 billion, up 23.2% year-on-year, and net profit attributable to shareholders of HKD 421 million, up 21.6% year-on-year. An interim dividend of HKD 8.0 cents per share was proposed. Revenue from the heavy-duty engine end market increased significantly by 23.7% year-on-year.
Q Technology Group Co Ltd (01478) came under significant pressure, closing down 7.21% to HKD 6.69. The company announced that its mobile phone camera module sales volume in July 2026 was 35.941 million units, down 9.5% month-on-month and 5% year-on-year. Total sales of camera modules and LiDAR were 38.493 million units, down 7.2% month-on-month and 3.2% year-on-year.
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