The overnight global bond sell-off continued, with long-term U.S. Treasury yields reaching extreme historical levels. Hong Kong's three major stock indices showed mixed performance. The Hang Seng Index and the Hang Seng China Enterprises Index fluctuated in negative territory throughout the day, while the Hang Seng Tech Index turned positive, driven by semiconductor stocks. At the close, the Hang Seng Index fell 0.57%, or 146.73 points, to 25,651.12, with a daily turnover of HKD 262.098 billion. The Hang Seng China Enterprises Index dropped 0.4% to 8,605.13, and the Hang Seng Tech Index rose 0.34% to 4,873.82.
China Merchants Securities believes that looking ahead, the probability of the Hong Kong stock market experiencing volatile upward movement remains relatively high. Current Hong Kong stock valuations are still at a low level compared to other major markets, providing a good safety margin. Although external liquidity constraints have not been lifted, and persistent U.S. inflation and rising U.S. bond yields will continue to suppress growth stock valuations, the Hong Kong market has already largely reflected some pessimistic expectations over the past period, leaving relatively limited room for further significant declines.
Blue-chip stocks saw standout performance from SMIC (00981). At the close, it rose 9.71% to HKD 75.15, with a turnover of HKD 19.218 billion, contributing 44.33 points to the Hang Seng Index. SMIC announced that based on customer demand and current order backlog, the company is more optimistic about its overall operations this year compared to the previous quarter. This is primarily due to strong demand for supporting chips driven by artificial intelligence, directly leading to a supply shortage for the company's power management chip capacity. The overseas siphon effect of AI has also prompted clients in consumer electronics and IoT to seek production capacity and order repatriation within mainland China.
Among other blue chips, Orient Overseas (International) Limited (00316) rose 4.24% to HKD 145, contributing 1.2 points. Lenovo Group (00992) gained 3.86% to HKD 13.2, contributing 5.27 points. Laopu Gold (06181) fell 6.94% to HKD 496, dragging the index down by 3.76 points. Xinyi Solar (00968) dropped 5.24% to HKD 2.71, dragging the index down by 1.08 points.
In terms of market sectors, large-cap tech stocks were mixed, with Tencent and Alibaba both down about 1%. Semiconductor stocks bucked the market trend and strengthened, catalyzed by the accelerated IPOs of two major domestic memory chip leaders. Hua Hong Semiconductor rose nearly 14%, SMIC gained nearly 10%, and Gigadevice surged over 17% to a new listing high. A Citigroup report predicting aluminum inventories will fall to a record low boosted aluminum stocks. Container shipping and beer stocks also rose against the market trend.
On the flip side, gold stocks were pressured by the simultaneous rise in U.S. bond yields and the U.S. dollar, with Everest Gold (01815) falling over 9%. Photovoltaic, automotive, and domestic property stocks declined.
1. Semiconductor stocks bucked the market downturn and strengthened. At the close, Gigadevice (03986) surged 17.03% to HKD 704.5. Hua Hong Semiconductor (01347) rose 13.89% to HKD 132.8. SMIC (00981) gained 9.71% to HKD 75.15. NOVOSENSE (02676) increased 8.09% to HKD 224.4. The IPOs of two major domestic memory chip leaders have accelerated. On May 19, the China Securities Regulatory Commission website showed that Yangtze Memory Technologies Co., Ltd. released a report for its initial public offering and listing tutoring filing, with CITIC Securities and China Securities as tutoring institutions. Just on May 17, ChangXin Memory Technologies had just updated its prospectus, with first-quarter net profit skyrocketing 1,688%, igniting market interest. Notably, according to WSTS data, global semiconductor sales reached $795.6 billion in 2025, a year-on-year increase of 26.2%, marking one of the strongest annual growth rates in history, primarily driven by demand from data centers and AI-related systems. WSTS forecasts that global semiconductor sales are expected to exceed $1 trillion in 2026.
2. Aluminum stocks performed strongly. At the close, Aluminum Corporation of China Limited (CHALCO) (02600) rose 5.3% to HKD 10.92. China Innovation Investment Limited (02788) gained 5.16% to HKD 21.62. China Hongqiao Group Limited (01378) increased 2.99% to HKD 31.66. The Middle Eastern supply system has been impacted, and the global aluminum industry landscape is being reshaped. China Customs data shows that in April this year, China's aluminum exports surged 15% year-on-year to 598,000 metric tons. Cumulative exports for the year have reached 2.05 million tons, up 8.9% year-on-year. Some analysts already expect that as overseas customers continue to purchase Chinese semi-finished products, China's aluminum exports may further increase in May and June. Citigroup expects aluminum inventories to fall to a record low within the next 6 to 12 months. Even in a scenario of weak demand, the aluminum market will still face a supply shortage of nearly 2.7 million tons this year. If demand decline is insufficient to offset tight supply, aluminum prices could reach $4,000 per ton within the next three months.
3. Most container shipping stocks were active. At the close, COSCO SHIPPING Holdings Co., Ltd. (01919) rose 4.58% to HKD 15.3. Orient Overseas (International) Limited (00316) gained 4.24% to HKD 145. SITC International Holdings Co., Ltd. (01308) increased 3.06% to HKD 35. Orient Securities pointed out that the agreement between China and the U.S. to reduce tariffs on a certain range of products may drive a recovery in U.S. route exports. Last week, freight rates on Europe and U.S. main routes accelerated upward due to peak season announced rate increases and the impact of bunker adjustment factors. China Securities, however, stated that current container shipping freight rates have returned to a平淡 state, but prices on Europe and U.S. routes, as well as various other routes, remain above the breakeven point for shipping companies. The performance of container shipping companies in the second quarter may show some sequential improvement, and the state of剧烈波动 in container shipping is gradually收敛. China's exports remain strong, providing support on the demand side for container shipping.
4. Gold stocks led the declines. At the close, Everest Gold (01815) fell 9.78% to HKD 0.83. Zijin Mining Group International (02259) dropped 4.33% to HKD 139.1. Zijin Mining Group Company Limited (02899) declined 2.04% to HKD 32.72. Lingbao Gold Group Company Limited (03330) decreased 1.75% to HKD 17.99. The overnight global bond sell-off continued, with long-term U.S. Treasury yields reaching extreme historical levels. The U.S. dollar index rose to its strongest level since early April, coupled with a simultaneous decline in stock markets, putting pressure on precious metals under multiple headwinds. Gold once fell below the $4,500关口. Regarding U.S. Treasuries, the 30-year yield breached the 5%防线,刷新 the highest level since 2007. Currently, market expectations for Federal Reserve rate hikes continue to升温. The CME FedWatch Tool shows that the market now sees a nearly 60% probability of a Fed rate hike within 2026. On the U.S.-Iran front, on May 19 local time, U.S. Vice President Vance stated that negotiations with Iran have made significant progress, and the U.S. side has also prepared a "Plan B" involving the resumption of military operations.
Notable movers among热门 stocks showed divergent first-day performance for two new listings. TOPNC (07688) surged on its debut. At the close, it rose 79.99% to HKD 47.50. UISEE Technology (01511) broke its issue price on the first day. At the close, it fell 4.64% to HKD 57.50. TOPNC focuses on研发五-axis CNC machine tools to meet the demand for advanced manufacturing in China's aerospace sector. UISEE Technology is a Greater China-focused supplier of autonomous driving solutions specializing in unmanned L4-level technology.
51WORLD (06651) continued to climb. At the close, it rose 13.03% to HKD 75.45. Recently, the concept of Physical AI has gained火爆 traction. Last weekend, Sun Yuchen stated that the红利 for ordinary virtual AI has ended, and the唯一主线 for the next three years is Physical AI (embodied intelligence). He also宣称准备 $1 billion to布局 eight major directions in Physical AI. Public information shows that 51WORLD, as a pioneer in China's Physical AI field, builds a full-chain ecosystem凭借 its digital twin underlying technology.
De Xiang Properties Limited (00199) remained strong throughout the day. At the close, it rose 10.71% to HKD 1.55. De Xiang Properties officially announced a全新 strategy for AI computing power infrastructure. By引入 industry-leading teams,锁定 core qualifications,搭建 compliance systems, and打通 capital pathways, it is implementing a strategic transformation from property development to a dual-drive model of "digital infrastructure + asset management," marking the listed company's entry into a critical stage of business重构, value重估, and赛道重选.
Huanxi Media Group Limited (01003) opened high and closed low. At the close, it fell 7.27% to HKD 0.255. On the evening of May 19, Huanxi Media announced that it had entered into a strategic cooperation and joint venture framework agreement with Paradigm Intelligence. The parties to the agreement intend to, through combining the company's industrial advantages in the film and television field and Paradigm Intelligence's professional capabilities in artificial intelligence, establish a strategic partnership in areas such as film and television creation, interactive entertainment, game development, and intellectual property周边衍生 by forming a joint venture enterprise as a cooperation platform.
Evergrande Property Services Group Limited (06666) faced selling pressure. At the close, it fell 7.64% to HKD 1.33. On May 19, Evergrande Property Services announced that the exclusivity period for negotiations regarding a potential transaction involving its controlling stake expired on May 15 and was not extended. The announcement clarified that although the exclusivity period has lapsed, discussions between the potential seller and the potential buyer have not terminated, and both parties are currently still推进 the finalization of terms for a formal sale and purchase agreement.
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