Today's Hong Kong market saw a mixed performance, with the Hang Seng Index opening higher but closing lower, while the Hang Seng Tech Index managed to turn positive by the session's end. Policy-driven positive surprises and a recovery in semiconductor sector sentiment fueled a broad rally in STAR 50 ETFs. Meanwhile, geopolitical risk premiums continued to recede, leading to consecutive declines for oil and gas ETFs. At the close, the Hang Seng Index fell 0.74% to 24,312.16 points, with a total turnover of HKD 270.41 billion. The Hang Seng Tech Index gained 0.22%, closing at 4,669.07 points. Among major Hong Kong-listed ETFs by size, the Tracker Fund (02800) closed down 0.72% at HKD 24.68, the Samsung KOSPI 200 Leveraged ETF (07709) surged 12.73% to HKD 144.8, and the CSOP Hang Seng Tech Index ETF (03033) edged up 0.09% to HKD 4.566.
Key Sector Movements
Policy Catalyst and Semiconductor Recovery Boost STAR 50 ETFs
Favorable policy developments exceeding market expectations, combined with a recovery in semiconductor industry sentiment, led to a strong rally across all STAR 50 ETFs. At the close, the PP STAR 50 ETF (03151) surged 4.93% to HKD 12.98, the Bosera STAR 50 ETF (02832) jumped 4.53% to HKD 13.38, the CSOP STAR 50 ETF (03109) climbed 4.2% to HKD 17.86, and the Huatai-PineBridge STAR Semiconductor Equipment ETF (588710) soared 8.44% to CNY 3.162.
On June 17th, the Chairman of the China Securities Regulatory Commission (CSRC) explicitly stated at the 2026 Lujiazui Forum that the application scope of the STAR Board's fifth set of listing standards will be expanded to include the artificial intelligence large model industry. This move aims to support more "hard tech" companies in fields like quantum technology, bio-manufacturing, and embodied intelligence in listing on the STAR Board. This announcement boosted the semiconductor equipment sector, which saw a broad surge. By the close on June 17th, the STAR 50 Index had gained over 4%.
Additionally, according to a Shanghai Stock Exchange release, the CSRC Chairman announced support for launching active ETFs on exchanges. Developing active ETFs aligns with the high-quality development stage of China's capital markets, helps serve residents' wealth management needs and empower the high-quality growth of public funds. This is seen as positive for enhancing the attractiveness of equity investments, strengthening the functional upgrade of the capital market, and attracting medium- to long-term capital inflows.
Oil & Gas ETFs Extend Losses as Geopolitical Premiums Fade
Persistent declines in geopolitical risk premiums led to continued losses for oil and gas ETFs. At the close, the F Samsung Crude Oil Futures ETF (03175) fell 3.26% to HKD 9.19, and the SPDR S&P Oil & Gas ETF (513350) dropped 1.96% to CNY 1.101.
Expectations for a US-Iran peace agreement memorandum have led to a sustained decline in geopolitical risk premiums. Anticipation for the reopening of the Strait of Hormuz has increased, pushing crude oil prices lower and driving adjustments in related ETFs. According to reports, on June 15th local time, the US Vice President stated that a memorandum of understanding reached with Iran had been signed electronically, and the agreement's terms were essentially finalized and effective.
A senior researcher at Galaxy Futures noted that on June 14th and 15th, the US and Iran successively confirmed they had reached a peace consensus, marking a turning point in market sentiment. The geopolitical risk premium previously elevated by Middle East tensions rapidly receded. Brent crude oil fell sharply in tandem, hitting an intraday low of USD 79.76 per barrel on June 16th, its lowest point in nearly three months.
Goldman Sachs released a latest forecast stating that following the announcement of a provisional agreement and the planned lifting of the US blockade and reopening of the Strait of Hormuz on Friday, the bank has lowered its oil price predictions. Goldman Sachs indicated that while full details of the agreement are not yet clear, it currently assumes Persian Gulf exports will normalize to pre-war levels by the end of July, revised from an earlier assumption of the end of August.
Fitch Ratings' view is that the recent surge in oil prices reflects a "temporary logistics and supply shock" rather than a permanent loss of capacity. Fitch anticipates the Strait of Hormuz is likely to resume navigation around the end of July, with Brent crude prices expected to fall significantly from their highs seen between March and July.
Institutional Perspectives
Looking ahead, the short-term market faces a contest between three forces, according to one brokerage's analysis. First is the recurring external macro disturbances; with the Federal Reserve's June FOMC meeting approaching, the new Chair's initial remarks may lean neutral-to-hawkish, leaving interest rate hike expectations uncertain. Second is internal industrial catalysts providing support for the technology industry chain. Third is a rebalancing of capital flows; as technology themes have accumulated significant gains, there may be a need for periodic portfolio rotation. Overall, the short-term market may continue in a consolidative pattern, with structural opportunities prevailing. From a medium- to long-term perspective, high-growth technology sectors remain the market's main theme, and the current adjustment provides a window for positioning in quality stocks.
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