Hong Kong's three major stock indices all closed higher on August 5. The Hang Seng Index rose 0.24% to 25,915.32 points, the Hang Seng Tech Index gained 0.97%, and the Hang Seng China Enterprises Index increased by 0.34%.
In sector performance, internet and technology stocks saw more gains than losses. Lenovo Group surged over 5%, while Baidu and Alibaba each rose more than 1%. In contrast, Xiaomi and NetEase fell more than 1%.
PCB concept stocks experienced a significant rally, with Shengyi Technology climbing over 16%. Citigroup, citing SCI99 data, reported that average prices for the three major electronic cloth series 1080, 2116, and 7628 all rose 17% to 18% month-on-month in August, reaching 13.1 yuan, 12.7 yuan, and 10.1 yuan per meter, respectively. This represents year-to-date cumulative gains of 118% to 165%. The absolute monthly price increase of about 1.5 to 2.0 yuan per meter is also the highest so far this year, reflecting a more severe supply-demand imbalance in the industry during August.
Gold stocks were strong, with China Gold International Resources jumping more than 13%. Spot gold climbed above $4,170 per ounce. A research report from CITIC Securities stated that while gold prices surged and then fell sharply earlier this year, the metal remains in a major bull market. This is due to factors including the accelerating expansion of the US fiscal deficit, the difficulty of bridging geopolitical rifts amidst deglobalization, and continuous central bank gold purchases providing support. The report suggests the recent price decline is merely a temporary correction within a bull market, noting the current retracement is approaching historical extremes and that the $4,000 per ounce level likely represents the bottom for this cycle. Looking ahead, CITIC expects the impact of the Strait of Hormuz situation on gold prices to shift from suppression to support, believes the Federal Reserve's monetary policy may be more accommodative than the market anticipates, and points to surging US military spending expanding the deficit. It forecasts gold prices will return to an upward trajectory within the year.
Oil stocks were among the day's worst performers, with CNOOC falling over 2%. International oil prices dropped significantly as expectations of easing tensions between the US and Iran strengthened, with Brent crude falling below $80 per barrel. US Treasury Secretary Scott Bessent previously stated that the US is in contact with Iran and could reach an agreement to reopen the Strait of Hormuz as soon as this week, or even within the next two days. Such an agreement would ensure freedom of navigation and that Iran would not collect tolls.
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