Hong Kong's three major stock indexes all closed in positive territory on Monday. The Hang Seng Index rose 1.96% to 25,807.92, the Hang Seng Tech Index climbed 2.84%, and the Hang Seng China Enterprises Index increased by 2.22%.
Tech stocks saw broad gains, with Xiaomi surging over 8%, while Bilibili and Tencent both advanced more than 4%. New consumer concept stocks were notably strong, with Bloks jumping over 15%. Auto stocks led the market higher, with Li Auto rising over 9%. In contrast, memory concept stocks suffered heavy losses, with the CSOP 2x Leveraged Daily SK Hynix ETF dropping more than 13%.
The strength in new consumer stocks comes after the State Council officially approved the "15th Five-Year Plan" for expanding consumption on July 13. The plan targets total retail sales of consumer goods reaching around 60 trillion yuan by 2030, designating "quality service consumption" and "AI-driven consumption" as new growth engines. Separately, data from the National Bureau of Statistics showed that June's total retail sales of consumer goods grew 1.0% year-on-year, turning positive from the previous month. Notably, institutions continued to reduce their allocation to the consumer sector in the second quarter, with the weighting of consumer stocks falling back to historical lows. Fund holdings data for the second quarter of 2026 indicates that public funds increased their allocation to technology, particularly in electronics and communications, while maintaining an underweight position across most consumer industries.
Auto stocks were among the top gainers, driven by Li Auto's 9% surge. Major automakers including BYD, XPeng, and Li Auto are intensifying their push into the humanoid robotics sector. BYD's self-developed humanoid robot is scheduled for its official debut in August, while XPeng's IRON humanoid robot has begun small-batch trial production, with a clear target for mass production by 2026. Vice Minister of the Ministry of Industry and Information Technology Ke Jixin revealed that domestic humanoid robot production has already exceeded 40,000 units in the first half of 2026, with a full-year forecast of over 100,000 units, signaling that the industry is shifting from prototype samples to batch delivery.
Memory concept stocks experienced a sharp decline, dragging down the CSOP 2x Leveraged Daily SK Hynix ETF by over 13%. SK Hynix reported a second-quarter operating profit that surged 557% year-on-year to 60.5 trillion won, with revenue up 257% to 79.3 trillion won, both setting new historical records. However, these figures fell short of market expectations. On July 29, South Korea's KOSPI index closed down 360.58 points, or 5.99%, at 5,663.08, after plunging more than 12% intraday and triggering circuit breakers for two consecutive trading sessions. SK Hynix shares fell 9.6% post-earnings, after dropping more than 17% at one point, marking a record intraday decline. Samsung Electronics also declined by 5.2%.
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