Hong Kong's major indices opened higher on Friday, buoyed by positive developments in US-Iran talks, before paring some of their early gains. By the market close, the Hang Seng Index had advanced by 0.5%, or 124.57 points, to finish at 24,842.67. The total turnover for the session reached HK$283.35 billion. The Hang Seng China Enterprises Index edged up 0.02% to 8,375.74, while the Hang Seng Tech Index posted a stronger gain of 1.28%, closing at 4,765.58.
Among blue-chip constituents, Lenovo Group (00992) led the gains. Its shares surged 9.31% to close at HK$24.42, contributing 21.63 points to the Hang Seng Index. Goldman Sachs noted the company's Infrastructure Solutions Group, AI PCs, and AI servers could drive a re-rating, helping it diversify away from the competitive consumer electronics market and benefit from generative AI trends.
Other notable blue-chip movers included J&T Express-W (01519), which rose 7.06% to HK$9.10, adding 5.23 index points. SMIC (00981) climbed 6.98% to HK$76.65, contributing a significant 32.08 points. On the downside, Aluminum Corporation of China (02600) fell 8.52% to HK$9.45, dragging the index down by 5.05 points, while ENN Energy (02688) declined 6.55% to HK$45.66, subtracting 3.88 points.
Sectoral Performance Highlights
Major technology stocks were mixed, with Meituan and Kuaishou in positive territory, while Alibaba and Tencent faced pressure. PCB (printed circuit board) concept stocks remained strong, with Kingboard Laminates (01888) soaring 22.26% to a record high of HK$80.20. The semiconductor industry chain also performed well. The breakthrough in US-Iran negotiations boosted gold and airline stocks. Chinese brokerages, heavy machinery, solar, and lithium battery stocks also moved higher. Conversely, oil & gas and coal stocks declined. Following a rating and target price cut by Goldman Sachs, Aluminum Corporation of China led losses in the aluminum sector.
PCB Sector Gains
PCB stocks were among the top gainers. Kingboard Laminates (01888) jumped 22.26% to HK$80.20. Kingboard Holdings (00148) advanced 12.65% to HK$100.60. Guanghe Technology (01989) rose 10.91% to HK$180.00, and Shenghong Technology (02476) gained 9.56% to HK$415.00. The expansion in AI infrastructure demand is creating new upstream bottlenecks in the high-end PCB supply chain. Reports indicate that Nvidia and its major clients are bypassing copper clad laminate (CCL) manufacturers to directly engage with suppliers of HVLP4 copper foil and T-glass fiberglass fabric, locking in critical capacity over a year in advance through direct consignment models. Industry sources suggest Nvidia is also applying greater procurement pressure on US cloud service providers. CCL suppliers have implemented rare quota systems, requiring IC substrate and PCB manufacturers to collect materials based on actual usage, further highlighting the scarcity of upstream materials.
Semiconductors Shine
The semiconductor industry chain showed strength. GigaDevice (03986) increased by 10.64% to HK$723.00. Huahong Grace (01347) climbed 10.06% to HK$153.20. Montage Technology (06809) rose 8.34% to HK$384.60. SK Group Chairman Chey Tae-won stated that SK Hynix plans to triple its wafer capacity by 2034 to meet the growing demand for memory chips driven by AI. Additionally, Central China Securities noted that global monthly semiconductor sales continue to grow at a high year-on-year rate, with significant growth expected in 2026. According to the latest WSTS forecast, global semiconductor sales are projected to reach $1.511 trillion in 2026, representing an 89.9% increase. Downstream demand shows a structural divergence, with AI computing hardware infrastructure demand remaining robust. The brokerage believes the semiconductor industry is still in an upward cycle, with AI being a key driver of growth.
Non-Ferrous Metals Rebound
Gold, copper, and other non-ferrous metal stocks rebounded. Zijin Mining International (02259) surged 15.06% to HK$121.50. MMG (01208) gained 8.83% to HK$9.74. Jiangxi Copper (00358) rose 7.70% to HK$37.20. Zhaojin Mining (01818) advanced 6.79% to HK$21.40. The prospect of US-Iran peace boosted base metals. Spot gold surpassed $430 per ounce, rising over 2% intraday, while LME copper climbed to a more than one-week high. Zhongtai Securities believes non-ferrous metals may maintain their positive momentum in the medium term. The implementation of a US-Iran agreement, coupled with a dovish Federal Reserve, could exert dual pressure on the US dollar, benefiting gold prices. In the long run, a decline in US dollar credibility stemming from the conflict could form the underlying logic for a sustained gold rally. For industrial metals, post-war military spending typically increases significantly across nations, which ultimately translates into expansion in global manufacturing capital expenditure. The non-ferrous metals sector is highly correlated with global capex, indicating a clear upward trend.
Airlines Take Off
Airline stocks gained across the board. Air China (00753) soared 10.36% to HK$4.90. China Eastern Airlines (00670) increased by 8.77% to HK$3.72. China Southern Airlines (01055) rose 8.03% to HK$3.90. Following confirmation of a US-Iran agreement, which is expected to lead to the reopening of the Strait of Hormuz soon, international oil prices fell significantly on Monday. The International Air Transport Association previously estimated that global airline fuel expenses would rise to approximately $350 billion in 2026, up from $252 billion in 2025, with fuel costs accounting for nearly one-third of airline operating expenses. Guotai Junan Securities pointed out that considering improved domestic supply and demand after the national college entrance exams, domestic airline route operating pressure is expected to ease starting in June compared to May. International routes are likely to continue benefiting from surging China-Europe ticket prices, maintaining profitability and providing carriers like Air China with superior oil price hedging capabilities relative to the industry.
Notable Stock Movements
New listing Liu Liu Mei (06658) debuted strongly. Its shares skyrocketed 193.71% to close at HK$128.00. Liu Liu Mei is a fruit-based snack company focused on plum products. According to Frost & Sullivan data, the company ranked first in retail sales in China's fruit-based snack industry in 2024 with a 4.9% market share. Its first-day performance and public offering oversubscription of approximately 6,586.73 times set a rare level of enthusiasm for a Hong Kong consumer sector IPO.
Zhipu AI (02513) performed strongly, surging 32.82% to HK$1,457.00. The company announced the launch of its latest flagship model, GLM-5.2, which offers a long context window of up to 1 million tokens and maintains leading performance in long-range tasks. The model is expected to be open-sourced under the MIT license, which is anticipated to boost usage volume for the company's subsequent open platform and API services.
COSCO Shipping Energy (01138) shares rose in both Hong Kong and mainland markets, closing up 19.11% at HK$16.95. Orient Securities noted that as the conflict moves towards resolution, if sanctions on Iran are lifted in the future, Iranian crude oil could potentially return to the compliant market, possibly accelerating the scrapping of older vessels. The brokerage expects tanker supply and demand to continue improving, driving the sector's upward cycle.
Innoscience (02577) rose significantly, closing up 16.64% at HK$67.30. On June 12, the Supreme People's Court officially issued a ruling on the reconsideration of a preliminary injunction, upholding the Suzhou Intermediate Court's sales ban against Infineon. This means Infineon's related gallium nitride products are now prohibited from being sold in China, marking Innoscience's final victory in the patent infringement case.
Nine Dragons Paper (02689) shares rebounded, closing up 11.40% at HK$7.33. The company announced that on June 15, it commenced a cash tender offer to repurchase any and all of its outstanding $400 million 14.00% perpetual capital securities. The company aims to further enhance its profitability and optimize its capital structure through the offer.
ENN Energy (02688) remained under pressure throughout the session, closing down 6.55% at HK$45.66. ENN Natural Gas announced the termination of its plan, through a wholly-owned subsidiary, to privatize ENN Energy and list by introduction on the Main Board of the Hong Kong Stock Exchange. Citi downgraded the stock to "Neutral," noting the transaction had been awaiting approval from the China Securities Regulatory Commission for nearly a year, with an unclear timeline for meeting all conditions.
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