Hong Kong Market Midday Update: Hang Seng Index Down Nearly 2%, Biotech Index Plummets Over 7%

Stock News12:10

Hong Kong's Hang Seng Index closed the morning session down 1.98%, shedding 494 points to reach 24,514. The Hang Seng Tech Index fell 4.04%, while the Hang Seng Biotech Innovation Index plunged more than 7%. The market recorded a turnover of HK$175.8 billion for the morning session.

BYD Electronic (International) Company Limited (00285) saw a modest gain of 0.34%, with analysts optimistic about the growth potential from its liquid cooling and power supply businesses. Shanghai Shape Memory Alloy Co., Ltd. (02291) bucked the broader market trend, rising over 4% following the company's recent share repurchase activities. QuantGroup Holdings Limited (02685) surged more than 18% against the market downturn, driven by news of a HK$60 million strategic investment from Guofu Quantum to boost its physics-based AI foundational model research.

MeiG Smart Technology Co., Ltd. (03268) advanced over 4% as its ecosystem for edge AI agents continues to develop, with the company having completed its transition to a smart module structure. China Merchants China Direct Investments Ltd. (00133) climbed over 5% following the release of Kimi's latest K3 model and a significant pre-money valuation increase to $31.5 billion.

Key Decliners Across Sectors

Copper stocks faced renewed selling pressure. Uncertainty surrounding potential US copper tariffs and other macroeconomic factors remain key variables for copper prices. China Nonferrous Mining Corporation Limited (01258) dropped 7%, while MMG Limited (01208) fell 6%.

Airline stocks continued their descent. High fuel costs are pressuring profitability, with J.P. Morgan forecasting the sector's second-quarter losses to be the worst in three years. China Eastern Airlines Corporation Limited (00670) declined 6%, and China Southern Airlines Company Limited (01055) decreased 3.56%.

Yue Jiang Group Holdings Limited (02432) plummeted 13% after a co-founder reportedly filed a complaint alleging the IPO prospectus concealed a significant equity dispute, a critical point in its "H to A" listing process. Johnson Electric Holdings Limited (00179) fell more than 10% as its Q1 revenue only saw a marginal increase of about 2% year-on-year, with clients maintaining a cautious stance on procurement and investment decisions.

JOINN Laboratories (China) Co., Ltd. (06127) tumbled another 9.9%. The company issued a risk warning notice, indicating that the price increase of laboratory monkeys contributed the vast majority of its net profit. Laopu Gold Co., Ltd. (06181) dropped over 5% as geopolitical tensions in the Middle East fuel inflation concerns, and gold price volatility puts pressure on sales. XPeng Inc. (09868) retreated more than 8% as its IRON humanoid robot is set to ramp up production, with plans to deploy them for customer service roles in XPeng showrooms.

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