Hong Kong's three major stock indices opened higher and maintained gains, with the Hang Seng Tech Index showing strong performance. By the close, the Hang Seng Index rose 1.34% to 25,453.23 points, with total turnover of HK$210.77 billion; the Hang Seng Tech Index gained 1.58% to 4,782.03 points. Among Hong Kong-listed ETFs by scale, the Tracker Fund of Hong Kong (02800) closed up 1.41% at HK$25.96, the Hang Seng China Enterprises Index ETF (02828) rose 1.45% to HK$86.90, and the CSOP Hang Seng Tech Index Daily (2x) Leveraged Product (07226) advanced 3.10% to HK$3.526.
SK hynix warned of the most severe "memory chip shortage" next year, driving related leveraged products higher. By the close, the CSOP SK Hynix Daily (2x) Leveraged Product (07709) surged 10.45% to HK$40.80, while the CSOP Samsung Electronics Daily (2x) Leveraged Product (07747) rose 5.29% to HK$89.98. SK hynix Chairman Chey Tae-won recently predicted that the memory chip industry would face the most severe supply shortage in history next year, stating that "next year is highly likely to be the year with the largest memory chip supply gap." He noted that all customers are requesting nearly double the supply compared to current demand. Previously, BOCOM International forecast that the memory market's supply-demand imbalance would persist until 2027, while Goldman Sachs predicted that the HBM supply-demand gap in 2027 would be tighter than this year.
Computing power concepts exploded, with multiple Sci-Tech Innovation Growth and semiconductor ETFs posting significant gains. By the close, the GF Sci-Tech Innovation Growth ETF (588110.SH) rose 6.43% to RMB 0.679, the Wanjia Sci-Tech Innovation Growth ETF (588070.SH) gained 6.33% to RMB 2.37, and the ChinaAMC Sci-Tech Innovation Semiconductor ETF (588170.SH) advanced 5.48% to RMB 1.077. CICC noted that the AI evolution has entered a new phase, with downstream profitability remaining healthy despite memory inflation. Diversified cost reduction is reshaping the AI hardware investment narrative, and the AI computing power chain remains in a high-prosperity cycle, potentially driving up the valuation center of the tech-growth sector. Huaxi Securities indicated that global CSP capital expenditures continue to be revised upward, and ChangXin Memory Technologies' LPDDR6 mass production is imminent. The domestic semiconductor and computing power infrastructure chain's prosperity is continuously being validated, with the Sci-Tech Innovation Growth track showing strong earnings support.
Baijiu and food & beverage ETFs weakened after Kweichow Moutai Co.,Ltd. reported its first net profit decline in a decade. By the close, the Penghua Baijiu ETF (512690.SH) fell 2.49% to RMB 0.430, while the ChinaAMC Food & Beverage ETF (515170.SH) dropped 1.46% to RMB 0.471. On the evening of August 14, Kweichow Moutai Co.,Ltd. disclosed its 2026 semi-annual report, showing total operating revenue of RMB 92.278 billion in the first half, up 1.3% year-on-year, but net profit attributable to shareholders fell 1.95% to RMB 44.517 billion. This marks the first decline in mid-year net profit for Kweichow Moutai Co.,Ltd. in nearly a decade and only the second such decline in 25 years. Notably, as of the end of June 2026, the "national team" entities Central Huijin and China Securities Finance Corporation had disappeared from the list of top ten shareholders of Kweichow Moutai Co.,Ltd.
Institutional perspectives: China Securities Co., Ltd. (CSC) noted that global tech stock deleveraging largely ended by late July, with the market shifting from capital-flow-driven to fundamentals-driven pricing. Historical experience suggests that capital structure mainly affects the rhythm of market movements, but the medium-term direction is still determined by earnings delivery. Currently, demand in the computing power chain remains resilient, and the A-share tech recovery is not yet over. In asset allocation, priority should be given to core assets with high fundamental certainty. Quanguo Fund believes that while the pace of revolutionary technological development is difficult to pinpoint, given the rapid iteration and diffusion of AI technology, this adjustment should be viewed as a phase correction rather than a bubble burst. With declining leverage levels, the tech stock adjustment has entered the middle-to-late stage.
ETF developments: The Ping An Rare Earth Metals ETF (561390.SH) debuted on the Shanghai Stock Exchange, closing up 1.66% at RMB 1.043 with turnover of approximately RMB 185 million. The fund tracks the CSI Rare Earth Metals Theme Index, which selects securities from the CSI All-Share Index related to rare metal mining, smelting, and processing. It covers key metals for the new energy and new materials sectors, including lithium, cobalt, and rare earths.
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