Market Overview and ETF Highlights
Hong Kong stocks posted a modest gain today, with the Hang Seng Tech Index continuing its solid run. Semiconductor equipment ETFs rallied collectively, driven by overseas market spillover and sustained industrial momentum, alongside reports that international giants are evaluating domestic equipment. Meanwhile, gold equity ETFs turned in a standout performance as geopolitical tensions eased and macroeconomic pressures softened. The Hang Seng Index edged up 0.24% to close at 25,915.82 points, with total turnover reaching HKD 278.043 billion. The Hang Seng Tech Index rose 0.97% to 4,933.07 points. Among the top Hong Kong ETFs ranked by size, Tracker Fund of Hong Kong (02800) gained 0.3% to HKD 26.4, CSOP 2x Leveraged SK Hynix (07709) jumped 4.96% to HKD 38.94, and Hang Seng China Enterprises (02828) added 0.52% to HKD 88.54.
Sector Performance
1. Semiconductor Equipment ETFs surged as overseas market spillover and sustained industrial momentum converged, with reports that international giants are evaluating domestic equipment. The Semiconductor Equipment ETF by GF (560780.SH) closed up 9.88% at RMB 1.034, the Semiconductor Equipment ETF by E Fund (159558.SZ) gained 9.67% to RMB 1.1, and the Semiconductor Equipment ETF by China Asset Management (159516.SZ) rose 9.53% to RMB 0.701. Overnight, the US semiconductor sector rallied sharply, providing direct sentiment spillover to A-share semiconductor equipment stocks. The Philadelphia Semiconductor Index surged 6.6% overnight, marking its fourth consecutive session of gains. SK Hynix ADR jumped over 8%, while SanDisk and Micron Technology also posted significant gains. According to China Securities Co., global wafer fab expansion and shortages of key components have created new opportunities for domestic equipment and component companies to enter international markets. Domestic firms have already built competitive advantages in areas such as etching, thin-film deposition, cleaning, metrology and inspection, testing, and advanced packaging equipment, as well as components including vacuum systems, RF power supplies, fluid systems, precision ceramics, and high-purity materials. Notably, market sources on August 5 reported that South Korea's Samsung Electronics and SK Hynix are evaluating chip-making equipment from China's Advanced Micro-Fabrication Equipment Inc (AMEC) for potential use in their Chinese factories. Reports indicate that AMEC's equipment has already been adopted by leading Chinese chipmakers like Yangtze Memory Technologies Corp, boosting confidence for Samsung and SK Hynix that some systems are mature enough for testing. Dongwu Securities suggests that the expansion pace of major domestic and international memory manufacturers is converging, and platform equipment makers and core process suppliers will benefit first from this cycle, with the pace of domestic substitution likely to accelerate.
2. Gold Equity ETFs delivered strong gains as geopolitical tensions eased and macroeconomic pressures receded. The Gold Equity ETF by Yinhua (517520.SH) closed up 7.51% at RMB 2.005, the Gold Equity ETF by Guotai (517400.SH) rose 7.41% to RMB 1.58, and the Gold Equity ETF by China Asset Management (159562.SZ) advanced 7.19% to RMB 2.176. Positive progress in US-Iran negotiations and a pullback in oil prices have eased inflation and rate hike expectations, providing support for gold prices. Guoxin Futures believes that in the short term, the US-Iran geopolitical situation remains the core variable. Combined with fluctuating Fed policy expectations, gold and silver still lack clear single-direction drivers and are likely to maintain a relatively strong but volatile pattern. Yangtze River Securities argues that with geopolitical influences waning in the second half of the year, and oil prices and inflation declining, suppressing factors are expected to ease marginally. High interest rates have already begun to negatively impact US fiscal sustainability. As the 10-year US Treasury yield enters the 4%–5% range, the mechanism of rate hikes on gold is shifting from "opportunity cost suppression" to "credit erosion drive," maintaining a medium-term bullish outlook.
Institutional Insights
Goldman Sachs (China) Securities offers the view that the current round of tech deleveraging is nearing its end, citing four reasons. First, the KOSPI and single-stock leveraged ETFs have already undergone significant compression, and retail margin financing has fallen back to early April levels, indicating the most intense phase of position clearing is over. Second, the market perceives a "dovish hawk" stance from officials like Kevin Warsh, reducing the probability of a rate hike this year and neutralizing short-term liquidity headwinds. Third, Microsoft and Amazon's earnings reports showed stronger-than-expected cloud demand, offsetting concerns about Google's free cash flow, allowing the market to distinguish between productive investment and wasteful spending. Fourth, the US-Iran conflict appears to be cooling under the TACO paradigm, loosening the energy premium chain. However, Goldman Sachs (China) Securities warns that emotional recovery does not mean a broad market rally. The AI narrative has transitioned from a capital expenditure race to a stage demanding proof of investment returns. As the adjustment phase concludes, the tech theme will return to earnings validation. The sustainability of major tech companies' capex will depend on model ARR and AI revenue coverage of depreciation. Hardware profitability hinges on supply-demand bottlenecks and pricing power, while supply chain profits may also be impacted by policy redistribution between the US and Korea. In the second half of the AI cycle, opportunities will belong to those who can truly convert computing power into cash flow.
ETF Movements
The Chemical Industry ETF by Huatai-PineBridge (561620.SH) made its market debut today, closing up 2.59% at RMB 1.028 with a turnover of RMB 127 million. The fund tracks the CSI Sub-Industrial Chemical Industry Theme Index, which primarily focuses on basic chemical sectors including chemical products, agricultural chemicals, and chemical raw materials, predominantly featuring leading chemical companies.
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