On the first trading day of August (August 3rd), A-share and Hong Kong stock markets showed divergence. The Shanghai Composite Index closed 0.59% lower at 3809.66 points, while the ChiNext Index fell 1.24%. Total market turnover reached 2.01 trillion yuan, a significant contraction compared to the previous trading day. The Hang Seng Index continued its recovery, closing 0.48% higher to achieve a six-day winning streak, with the Hang Seng Tech Index gaining nearly 1%. The AI theme shifted from hardware to software, with Hong Kong internet stocks and A-share software development, representing soft technology, actively trading against the broader market trend. The Hong Kong Internet ETF (513770), heavily weighted in internet leaders, surged 2.11% on increased volume, while the Software Development ETF (159036), focusing on AI application frontiers, extended its winning streak to six days.
Notably, global hard-tech volatility intensified in July. Benefiting from improved liquidity and a valuation bottom, Hong Kong stocks captured a catch-up rally driven by global fund rebalancing. During this period, the underlying index of the Hong Kong Internet ETF (513770), the CSI Hong Kong Stock Connect Internet Index, accumulated a gain of 18.81%, leading major global technology indices. With SpaceX set to release its first quarterly report, commercial aerospace concept stocks were active. The General Aviation ETF (159231), which offers one-click exposure to commercial aerospace, satellite navigation, low-altitude economy, and large aircraft, closed 1.87% higher. The Military Industry ETF (512810), with over 78% exposure to commercial aerospace, also recorded consecutive gains against the market trend.
Nuclear power stocks led the gains in the power sector. The Power ETF (159146), covering the full spectrum of wind, solar, hydro, fire, and nuclear energy, closed 1.06% higher in the market, marking its fourth consecutive daily gain. On the news front, the State Council recently approved four nuclear power projects, including a total of eight nuclear power units, with total project investment expected to exceed 170 billion yuan. On the downside, the computing hardware industry chain corrected again. The low-fee Chip ETF (589190) fell 7% in the market, losing its 500-day moving average. Storage chip leader GigaDevice hit the daily limit down, and the Tech ETF (515000), representing the overall performance of tech leaders, closed 4.18% lower.
Where is the tech sector adjustment positioned currently? Huatai Securities believes that the core contradiction of the current tech market is whether its trading bottom has been formed, and it is currently closer to the early emergence of a trading bottom. The key window for a trend reversal might be in late August, when mid-year reports, Nvidia's earnings, and redemption pressure during the rebound will collectively determine whether tech can form a new upward cycle.
AI Theme Shifts Gears? Alibaba Surges 7%, Low-Position Hong Kong Internet ETF (513770) Rises Over 2%, Underlying Index Up Over 18% in July
Hong Kong stocks started August with a strong opening, with all three major indices opening higher. Alibaba-W surged 7%, Tencent Holdings and Kuaishou-W rose over 3%, while Meituan-W and Bilibili-W followed with gains of over 1%. The Hong Kong Internet ETF (513770), heavily weighted in internet leaders, opened higher and rose further, with intraday gains touching nearly 3% before closing 2.11% higher. Since the correction began in July, the underlying index of the Hong Kong Internet ETF (513770), the CSI Hong Kong Stock Connect Internet Index, has accumulated a gain of 18.81%, leading major global tech indices.
Analysts suggest that global hard-tech volatility intensified in July. Benefiting from improved liquidity and a valuation bottom, Hong Kong stocks captured a catch-up rally driven by global fund rebalancing. The Hong Kong internet sector led the gains, driven by a rebound in AI penetration, accelerated commercialization of large models, and stabilizing profitability of internet giants. Notably, as of the end of July, the P/E ratio (TTM) of the Hong Kong Stock Connect Internet Index stood at 20.47 times, still at a historically low 8.94% percentile over the past five years, positioning it as a valuation trough compared to US, South Korean, and A-share tech stocks.
On today's trading session, a series of positive developments in Alibaba's AI business ignited the market. Alibaba officially released its next-generation foundational large model, Qwen3.8, with a total parameter size of 2.4 trillion, significantly improving capabilities in coding and professional office work. In today's released third-party Arena rankings, Alibaba's Qwen model ranked second only to Anthropic's Claude series, with overall performance in the top tier of global large models. Currently, the API for Qwen3.8 has been launched on the Qianwen AI platform and integrated into Alibaba's newly launched Agent product, Qianwen Office, also introduced today.
Furthermore, Chinese large models swept the global top five. According to the latest weekly AI large model usage rankings from the global multi-model aggregation platform OpenRouter, the top five products were all developed by Chinese companies. Xiaomi's MiMo-V2.5 topped the list with a weekly usage volume of 10.5 trillion tokens. Tencent's Hunyuan 3 ranked third, while second and fifth places were occupied by DeepSeek.
Based on recent market performance, the AI theme is undergoing a subtle shift. Microsoft's latest earnings report showed a 43% surge in Azure cloud revenue, further validating the commercialization of its AI business, receiving a positive market response. The competitive logic of the AI industry is formally transitioning from an early arms race to a commercialization validation phase. Morgan Stanley's latest view suggests that the recent volatility in the AI sector is not due to fundamental deterioration but rather a combination of crowded trades, fund absorption by large companies, and rising oil prices fueling rate hike expectations. The institution believes that AI investment has entered a halftime adjustment, with the logic shifting from chasing upstream computing chip stocks to two main themes: AI applications (cost reduction and revenue generation) and HALO resource support (energy, storage, raw materials).
Galaxy Securities stated that the significant volatility in the AI industry sector in July, with deep corrections in AI hardware stocks, reflects a subtle shift in the market's valuation logic, transitioning from initial capital expenditure expansion to investment return validation. Concurrently, as domestic large models approach the first tier of global mainstream models, domestic AI applications and Agents are expected to enter a flourishing stage, with the inflection point for commercial value realization having arrived.
SpaceX to Release Its First Quarterly Report, Commercial Aerospace Sees Dense Catalysts! Huabao Fund's General Aviation ETF (159231) Rises 1.87% Against the Market
The aerospace sector was actively traded against the broader market. The General Aviation ETF (159231), offering one-click exposure to commercial aerospace, satellite navigation, low-altitude economy, and large aircraft, saw its market price close 1.87% higher, touching its 20-day moving average during the session with a total turnover of 7.97 million yuan. Almost all constituent stocks were in positive territory. Nanwang Technology surged over 8%, Aerospace Huanyu rose over 7%, Zongshen Power and Tianyin Electromechanical gained over 6%, Guanglian Aviation and Lianchuang Optoelectronics advanced over 5%, and Zhongke Xingtu and Zhongke Xingtu added over 4%.
On the news front, commercial aerospace is set to encounter multiple event catalysts in the near future: First, Zhongke Yuhang signed a high-orbit launch意向 contract, using the Lijian-2 launch vehicle and the Lixun-1 upper stage combination to provide launch services for high-orbit communication satellites. Second, LandSpace's Zhuque-3 Y2 rocket plans a re-flight in August, designed for up to 20 reuses of its first stage. A successful vertical soft landing would mark Chinese private rockets transitioning from successful orbit insertion to a recovery and reuse闭环. Third, Galactic Energy's Zhipushen-1 rocket is targeting a first flight in mid-to-late August for orbit insertion without recovery. The Zhipushen-2 large liquid reusable rocket plans its first flight by year-end, and the Gushen-2 solid rocket aims for a re-flight in Q4. Fourth, SpaceX will release its first quarterly report after its listing on August 4th after the market close. Market expectations for Starlink revenue and Starship commercialization progress are heating up.
Guolian Minsheng Securities pointed out that the layout of the domestic space computing power industry is clear and competitive, and the current configuration value of the aerospace sector is prominent. There are many participants in the domestic space computing power track with fast launch schedules, and substantial progress is expected this year. The commercial aerospace industry has yielded abundant results this year, including launches and recoveries of rockets like Chang-10 and Chang-10B. The industry itself has no substantive negative factors. The earlier weakness in the aerospace sector was mainly due to capital and external capital market factors, unrelated to industry fundamentals. After deep adjustments, the sector currently has significant configuration value.
Power Sector Active Again! Record High Power Loads in Multiple Regions, Nuclear Policy Catalysts Boost Power ETF (159146) to Fourth Consecutive Gain Against Market
The power sector remained active, with multiple stocks rising against the market. Leshan Electric Power hit the daily limit up, Huayin Electric Power and Jingke Technology rose over 5%, and several stocks like Datang Power Generation, Guangdong Electric Power A, Xinneng Thermal Power, and Jiaze New Energy gained over 3%. Among popular ETFs, the Power ETF (159146), covering the full spectrum of wind, solar, hydro, fire, and nuclear energy, traded in positive territory throughout the day, closing 1.06% higher, marking its fourth consecutive daily gain.
On the news front, power loads in multiple regions have repeatedly hit record highs. Due to recent widespread high-temperature weather, power loads in many areas under the State Grid Corporation of China have repeatedly set new historical records. From July 27th to 31st, two regional grids (North China, Northeast) and five provincial grids (Tianjin, Northern Hebei, Jiangsu, Liaoning, Eastern Inner Mongolia) saw record highs. Additionally, the nuclear power sector welcomed policy support. The State Council recently approved 8 nuclear power units, confirming the trend of scaled and normalized construction of nuclear power during the 15th Five-Year Plan period, continuously strengthening the medium-to-long-term prosperity and growth certainty of the sector.
Guosheng Securities indicated that the power sector is experiencing continuous volume and price recovery. From a volume perspective, during the peak summer period, the balance of power supply and demand in some areas of Central China, Southwest China, East China, and Southern China Power Grid is expected to be tight. From a price perspective, electricity prices in most regions continue to maintain recovery during the summer. The overall fundamentals of the sector are continuously improving. At the configuration level, the firm suggests focusing on thermal power enterprises with advantages in coal-electricity integration, high proportions of long-term coal contracts, and expectations of electricity price reversal. For hydropower, improving water inflow conditions combined with steady profit growth expectations in the second quarter make related hydropower sectors suitable for configuration. Meanwhile, the direction of computing-electricity synergy is also worth noting, potentially opening new growth space for green power enterprises. Furthermore, policy supports volume and price, and with intensive nuclear power plant commissioning in 2026, related nuclear power enterprises are facing multiple catalysts.
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