Hong Kong's three major indices opened lower and extended losses throughout the session.
At the close, the Hang Seng Index was down 1.43% at 23,076.91, the Hang Seng Tech Index fell 1.63%, and the Hang Seng China Enterprises Index dropped 2.02%.
In terms of sector performance, technology and internet stocks were mostly lower.
LENOVO GROUP rose over 4%, while Alibaba fell over 4%, and Baidu declined more than 3%. Xiaomi, Meituan, JD.com, and NetEase all dropped over 2%.
Chip stocks bucked the trend to move higher, with Biren Technology surging over 13%.
Gold stocks were under pressure, with China Gold International falling over 8%.
Coal stocks also faced selling pressure, with China Qinfa dropping more than 6%.
Domestic banking stocks weakened, with Bank Of China Limited shares down over 5%.
Chip Sector Strength
Chip-related stocks showed strength, with Biren Technology leading gains, up over 13%.
This positive momentum was supported by Micron Technology's fiscal 2026 third-quarter earnings report, released after the U.S. market close on June 24.
The company reported adjusted revenue of $414.6 billion, significantly exceeding market expectations of $356.9 billion.
Furthermore, Micron provided fourth-quarter revenue guidance of $490 billion to $510 billion, well above the market consensus of $432.4 billion.
These results, which far surpassed analyst forecasts, have boosted confidence in the global semiconductor industry, particularly in the memory chip segment.
Gold Stocks Under Pressure
Gold stocks declined, with China Gold International dropping over 8%.
This weakness follows a sustained correction in international gold prices.
The spot price of gold in London has fallen below the $4,000 per ounce level, representing a decline of nearly 30% from its historical peak of around $5,600 earlier this year, which has triggered bearish sentiment.
Additionally, recent collective downward revisions of gold price targets by several major Wall Street banks have added to the downward pressure on gold futures.
Deutsche Bank, in a recent report, forecast a fourth-quarter gold price of $4,800 per ounce, a 17% reduction from its previous projection.
Goldman Sachs also earlier lowered its year-end 2026 gold price forecast by $500 to $4,900 per ounce.
Coal Stocks Face Headwinds
Coal stocks came under pressure, with China Qinfa falling over 6%.
The sector is being weighed down by rising expectations for overseas interest rate hikes and simultaneous weakness in both domestic and external demand, which is pressuring steel prices.
Supply-demand imbalances within the ferrous metals industrial chain have become apparent, leading to a cautious market atmosphere with a lack of clear short-term catalysts.
Price data shows a continued weakening trend in coal prices recently.
On June 24, the CCI5500 thermal coal price at northern ports was reported at 863 yuan per ton, down 3 yuan from the previous day, extending the downtrend.
The CCI5000 and CCI4500 indexes also fell by 3 yuan per ton each, indicating a continued downward shift in the price levels for various coal grades.
Domestic Bank Stocks Weaken
Domestic banking stocks weakened, with Bank Of China Limited shares down over 5%.
This follows the publication of an audit report on the State Council's website on June 23 titled "Report on the Audit of the Execution of the Central Budget and Other Fiscal Revenues and Expenditures for 2025".
The report stated that between April 2023 and August 2025, the bank arranged for two of its affiliated financial institutions to act as conduits.
It allegedly packaged 11 private equity funds into public fund products by having a large number of its own employees contribute nominal amounts ranging from 1 to 100 yuan to meet participation quotas.
This scheme was reportedly used to exploit a policy benefit that exempts public funds from income tax, allegedly resulting in cumulative tax evasion of 2.367 billion yuan.
According to media reports, the bank has responded by stating it sincerely accepts audit supervision, attaches great importance to the issues raised, is conducting a deep analysis of the causes, is committed to immediate rectification, and is detailing specific measures to solidly advance corrective actions.
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