Hong Kong Stocks Midday: Hang Seng Slips 0.42% as Zhipu Leads Tech Gains

Hong Kong's benchmark Hang Seng Index fell 0.42% in the morning session, shedding 108 points to close the morning at 25,544. The Hang Seng Tech Index bucked the trend, edging up 0.19%. Morning turnover on the Hong Kong market reached HK$125.3 billion.

Zhipu (02513) bucked the broader market weakness, opening higher and extending gains to close the morning up 8.9%. The company recently claimed the "Niulai" large language model, launched and open-sourced the GLM-5.3-Flash, with all traffic supported by domestically produced chips for computing power.

AI hardware stocks mostly advanced. Following Nvidia's Q2 revenue doubling and better-than-expected guidance, institutions see a key industry inflection point for AI computing hardware. Yangtze Optical Fibre and Cable (06869) rose 8%, Zhongji Innolight (03308) gained 5.52%, and Kingboard Laminates (01888) climbed 9%.

Yue Gang Wan Zhisuan (01396) rose over 7%, with Nvidia's earnings and conference call validating computing power demand and clarifying the company's "Token Factory" strategy. Dongyue Group (00189) continued its rally, surging over 10%, as institutions suggest the company would directly benefit if strait restrictions on refrigerants are relaxed in the second half of the year.

In the healthcare sector, Hansoh Pharmaceutical (03692) jumped over 14% after reporting a 35.82% year-on-year increase in first-half net profit. Henlius Biotech (02696) advanced 3.5% following a 159% surge in overseas product revenue in the first half, prompting Citi to raise its earnings forecast and target price. Akeso (09926) extended gains by over 4% after its Phase III trial of ivonescimab combined with chemotherapy as a first-line treatment for biliary tract cancer met its primary endpoint.

On the downside, Yijun Group Holdings (02442) soared over 38% to an all-time high after introducing an intelligent computing service provider as its major shareholder. Foshan Haitian Flavouring and Food (03288) fell over 9% as second-quarter results showed slowing momentum, with weak restaurant demand dragging down core category growth. Xinhua Winshare (00811) dropped over 11% after second-quarter net profit attributable to shareholders fell 30% year-on-year, with revenue down 17%. Viva Biotech (01873) declined over 7% after first-half adjusted net profit fell 30% year-on-year, with CRO business revenue also declining.