The Hang Seng Index opened 0.04% higher on May 27, while the Hang Seng Tech Index gained 0.66%. Leading the gains were the chip and semiconductor sectors, with GIGADEVICE (03986) rising over 5% and HUA HONG SEMI (01347) advancing over 4%. Technology and internet stocks also strengthened, as NetEase (09999) climbed over 4% and BILIBILI-W (09626) increased nearly 1%. Contemporary Amperex Technology Co. Limited saw a rise of over 6%.
Regarding the market outlook, Guotai Haitong noted that short-term risks such as rising interest rates have introduced negative pricing disturbances. However, the medium-term focus remains on the growth trend of the AI industry. The key to a breakthrough in the Hong Kong market in the next stage lies in confirming a fundamental inflection point, with the first-quarter earnings reports of internet companies solidifying the narrative of a fundamental recovery. In terms of structure, it is important to value the defensive role of Hong Kong dividend stocks while gradually increasing attention to the technology sector and resilient external demand/overseas supply chains.
With the ongoing advancement of electrification, coupled with the sustained high-load demand driven by artificial intelligence and extreme heat driven by climate warming, power demand is no longer simply following economic growth. Instead, it exhibits a structural characteristic of "elevated base load + amplified peak demand." The proportion of electricity in terminal energy consumption continues to increase, making it the core carrier for almost all new energy demand.
Zhonghang Securities believes that, looking ahead to May, the sector has entered a window of high cost-effectiveness for allocation. Driving factors include: intensive industry catalysts, with Tesla completing the shutdown of Model S/X production lines in early May and initiating production line upgrades; the Optimus V3 is expected to begin production in Fremont in late July or August, and batch orders for the domestic supply chain are anticipated to be gradually secured. Additionally, accelerated industrial resonance at home and abroad is evident, with Figure announcing a production speed increase from one unit per day to one unit per hour, achieving a 24-fold capacity expansion within 120 days. The State Grid of China is projected to have a total investment scale in embodied intelligence exceeding 100 billion yuan by 2026. Furthermore, positioning and sentiment have been adequately repaired; following a previous deep adjustment, the sector has started afresh with a lighter load. With the disturbances of the earnings season eliminated, the allocation attractiveness of the sector has become prominent.
China International Capital Corporation Limited (CICC) stated that, considering the U.S.-Iran conflict and Guinea's tightening mining policies affecting supply, prices for electrolytic aluminum, energy, and alumina are expected to rebound. It is recommended to focus on electrolytic aluminum companies with high self-sufficiency rates in power and alumina.
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