The three major Hong Kong stock indices opened under pressure and declined this morning, before staging a significant recovery in the afternoon. The Hang Seng Index narrowly held the 25,000-point mark, while the Hang Seng Tech Index saw its losses narrow considerably. At the close, the Hang Seng Index fell 1.27%, or 322.07 points, to 25,006.16, with a full-day turnover of HKD 356.345 billion. The Hang Seng China Enterprises Index dropped 1.17% to 8,364.41, and the Hang Seng Tech Index declined 0.39% to 4,888.58.
Industrial Securities previously noted that for Hong Kong stocks to form a truly sustainable index rally, it still requires waiting for more conditions to align. Over the past period, the adjustment in Hong Kong stocks, particularly the Hang Seng Tech Index, was mainly due to downward revisions in earnings expectations. China Merchants Securities stated that looking ahead, the probability of Hong Kong's market fluctuating upwards remains relatively high. Currently, Hong Kong stock valuations are still at a low level compared to other major markets, providing a good margin of safety.
Blue-chip performance was led by POP MART (09992), which closed up 4.73% at HKD 161.5, with a turnover of HKD 6.22 billion, contributing 8.51 points to the Hang Seng Index. The latest HKEX disclosure shows that renowned investor Duan Yongping has taken a stake in POP MART, with the latest holding value exceeding HKD 11.7 billion. An HKEX announcement revealed that as of May 25, Duan Yongping and his controlled entity, H&H International, LLC, collectively held 76.3716 million shares of POP MART, representing 5.69% of the issued shares with voting rights.
Among other blue chips, SMIC (00981) rose 3.58% to HKD 88.25, contributing 20.31 points to the Hang Seng Index. Lenovo Group (00992) gained 3.58% to HKD 19.68, contributing 7.34 points. Hansoh Pharma (03692) fell 7.1% to HKD 31.4, dragging the index down by 5.75 points. Innovent Biologics (01801) dropped 5.19% to HKD 74.85, pulling the index down by 10.79 points.
On the sector front, most major tech stocks were under pressure, with Tencent and Alibaba both falling over 2%. The two leading wafer foundry stocks rose today, with HUA HONG SEMI (01347) surging over 11% to a new high. Optical communication and PCB concepts gained in the afternoon, with Cambridge Technology rising over 11% as the company plans to raise nearly HKD 2 billion for strategic reserves of core components. Conversely, fluctuating US-Iran tensions led to a rebound in crude oil prices, while gold and airline stocks declined. Innovative drugmakers, heavy machinery, and Chinese brokerage stocks also faced pressure.
1. Leading wafer foundry stocks advanced. At the close, HUA HONG SEMI (01347) jumped 11.55% to HKD 170, while SMIC (00981) rose 3.58% to HKD 88.25. Reports indicate that the global wafer foundry price hike is accelerating. Following TSMC's announcement of price increases of up to 15% for its 3nm process, UMC announced it would follow suit, planning to selectively raise prices by about 10% in the second half of 2026, with further increases possible in 2027 after comprehensive negotiations. Notably, the domestic semiconductor sector has seen frequent catalysts recently. On May 27, the Shanghai Stock Exchange's listing committee announced that ChangXin Technology passed its review for a STAR Market IPO. Previously, Huawei's "Tao's Law" proposal attracted market attention. CITIC Securities pointed out that the semiconductor industry cycle has reached an inflection point. Driven by both domestic substitution and AI innovation, industry sentiment is expected to continue improving. It recommends focusing on leading companies in segments like equipment, materials, and design.
2. PCB concepts rose in the afternoon. At the close, Kingboard Holdings (00148) gained 6.67% to HKD 65.55, Kingboard Laminates (01888) rose 3.57% to HKD 56.5, and Guanghe Technology (01989) increased 2.04% to HKD 185.0. On May 27, Kingboard Laminates issued another price increase notice to customers: laminate prices up 10%, prepreg (PP) prices up 20%. Regarding the reasons, Kingboard Laminates stated in the notice: "Due to persistently high copper prices and continuously rising glass cloth prices with increasingly tight supply." The new prices are effective for orders from today. This marks the fourth price hike by Kingboard Laminates this year, with cumulative increases exceeding 40%. Additionally, according to Morgan Stanley's supply chain research, the PCB cost for Nvidia's VR200 has seen a massive increase of over 233% compared to the GB300. This would raise the total PCB consumption value to approximately USD 117,000, compared to just USD 35,000 for the GB300.
3. Gold stocks led the decliners. At the close, Lingbao Gold (03330) fell 6.73% to HKD 16.36, Zijin Mining International (02259) dropped 6.46% to HKD 127.5, Shandong Gold (01787) declined 5.96% to HKD 23.66, and Chifeng Gold (06693) decreased 4.75% to HKD 31.3. On May 28, crude oil prices rebounded sharply, with WTI and Brent crude both rising over 4% intraday, while spot gold fell significantly, breaking below USD 4,400. On May 27, US forces struck a ground-based drone control station in the Iranian port city of Bandar Abbas. On May 28, the Public Relations Department of Iran's Islamic Revolutionary Guard Corps issued a statement saying that in the early hours, US forces conducted an airstrike on a location in the suburbs of Bandar Abbas, after which the Revolutionary Guard retaliated by striking the US air base that launched the attack. UBS, in its latest gold report, lowered its gold price forecast, expecting prices of USD 5,500 per ounce by the end of 2026 and the first half of 2027, down USD 200-400 from previous forecasts. The report noted that high oil prices triggered by Middle East conflicts are pushing up inflation expectations, prompting global central banks to maintain a hawkish stance. The simultaneous strengthening of US Treasury yields and the US dollar is putting renewed "carry cost" pressure on gold. Furthermore, UBS significantly lowered its silver price forecast and its supply deficit expectations for 2026.
Notable movers included Zhipu AI (02513), which hit a new high, closing up 13.54% at HKD 1,618. On May 22, Hang Seng Indexes Company announced the results of its quarterly review, with Zhipu AI set to be included in the Hang Seng Tech Index, effective June 8. Huachuang Securities noted that the company, leveraging its Tsinghua University technology foundation and leading MaaS ecosystem, is positioned in a core track amid the wave of AI generalization and intelligent agents, and is expected to continue benefiting from accelerating commercialization and explosive token consumption.
ZTE (00763) rose in the afternoon, closing up 13.09% at HKD 27.82. ZTE announced that on May 27, it conducted its first share repurchase of A-shares, buying back 19.2591 million A-shares, representing 0.40% of the total share capital, with a total payment of CNY 670 million. ZTE's Q1 results showed that revenue from its computing power products increased to 27% of the total. Guojin Securities pointed out that the company is firmly implementing its "AI for All" strategy, building an end-to-end AI capability system driven by both "connectivity and computing power."
Tong Shifu (00664) performed strongly, closing up 13.43% at HKD 22.8. On the evening of May 27, Tong Shifu's founder Yu Guang announced on social media that the series of co-branded merchandise with "A Record of a Mortal's Journey to Immortality" sold HKD 22 million within three hours of launch. According to the 2025 animation market analysis report, "A Record of a Mortal's Journey to Immortality" topped the domestic animation chart with a cumulative annual viewership of 2.614 billion, becoming one of the most influential works of the year.
NIO-SW (09866) rose throughout the day, closing up 6.28% at HKD 44.34. On May 27, NIO officially launched the ES9. Pricing starts at CNY 498,000 for the Executive Luxury version with full vehicle purchase, and CNY 390,000 with the BaaS battery rental option. The Executive Signature version starts at CNY 558,000 with full purchase and CNY 450,000 with BaaS. The Horizon Special Edition starts at CNY 628,000 with full purchase and CNY 520,000 with BaaS.
GUANZE MEDICAL (02427) saw its shares plunge, closing down 19.64% at HKD 4.42. The Hong Kong Securities and Futures Commission recently conducted an inquiry into the shareholding distribution of GUANZE MEDICAL. The inquiry results showed that as of May 13, 2026, 20 shareholders collectively held 894 million shares of the company, representing 94.13% of the issued share capital. Therefore, only 55.7631 million shares (5.87% of the issued share capital) were held by other shareholders.
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