The Hong Kong market is enduring a particularly rough patch, failing to rally when others do but falling harder during downturns. A market lacking a clear leadership core remains vulnerable and reactive.
The global tech engine, the Nasdaq, tumbled 1.32% overnight, with AI giants suffering heavy losses, triggering a chain reaction. Today, the Hang Seng Index fell 1.82%. South Korea's market is also noteworthy, frequently hitting circuit breakers in both directions. According to reports, cross-party lawmakers in South Korea are discussing tax reforms, proposing to levy taxes on the paper gains of investment assets like stocks and real estate, even if the assets are not sold, using the increase in net asset value as the tax base. The aim is to reduce leverage and cool the overheated market. The KOSPI index closed down 10%, its largest single-day drop since March 4th; Samsung Electronics fell over 7%, and SK Hynix plunged more than 10%. This is the nature of leveraged markets—extremely volatile in both directions. During declines, various market rumors resurface. One such rumor suggested that Nvidia forced the procurement price of 1.6T optical modules down to $920 per unit, sparking fears of a "halving of gross margins." However, Nvidia's investor relations department has officially clarified: there is no unified procurement price cap, and annual framework orders will be executed at original commercial prices. Tech was indeed a major casualty today, with Montage Technology Co Ltd (HKG: 06809) and Shenghui Technology Co Ltd (HKG: 02476) both falling over 12%. GigaDevice Semiconductor (HKG: 03986) dropped more than 10%.
Federal Reserve officials have been sending hawkish signals. Chicago Fed President Austan Goolsbee stated on Monday that he remains concerned about inflation and questions whether all the factors driving price increases are merely transitory. The US Dollar Index broke above 101, pushing down gold and non-ferrous metals. China Molybdenum Co Ltd (HKG: 03993) and Jiangxi Copper Co Ltd (HKG: 00358) both fell over 10%. Following the US granting a 60-day comprehensive exemption for Iranian oil sanctions, Iran is eager to clear its approximately 68 million barrels of floating storage within the limited window and is actively engaging with refineries in India, Japan, and South Korea to broaden its buyer base. Countries short on oil are expected to accelerate inventory replenishment during this window. China COSCO Shipping Energy Transportation Co Ltd (HKG: 01138), mentioned yesterday, rose nearly 6% again.
The lifeline for the tech sector lies in products experiencing price hikes. For instance, an MCU (Microcontroller Unit) price surge is underway. STMicroelectronics announced its second price increase this year, effective June 28th, with giants like NXP Semiconductors, Infineon Technologies, and Nuvoton Technology following suit. Institutional research reports indicate that Huada Electronics has officially issued a notice to increase prices across its entire MCU product line starting July 1st, marking the official entry of the MCU industry into an upward price cycle. Nationz Technologies Inc (HKG: 02701) possesses a complete, full-process in-house IC design platform and a top-tier domestic industrial MCU mass-production matrix. The dual business resonance of MCUs and IC design allows it to fully capture the dual incremental drivers of import substitution and product price increases. It rose nearly 11% today.
Dongjiang Environmental Co Ltd (HKG: 00895), mentioned yesterday, is primarily driven by themes of bismuth telluride, environmental protection, Guangdong state-owned assets, precious metal recovery (gold/bismuth), and hazardous waste disposal. This stock is clearly being actively traded. According to a Hong Kong Stock Exchange filing disclosed on June 22, IMC Global Holdings LLC increased its holdings in Dongjiang Environmental Co Ltd (HKG: 00895) by 24.1384 million H-shares on June 17 at an average price of HK$1.98 per share, worth approximately HK$47.794 million. After the purchase, IMC Global Holdings LLC's latest shareholding stood at 24.1384 million shares, with its long position ratio rising from 6.84% to 12.06%. However, on June 18, IMC Global Holdings LLC sold 14.306 million shares of Dongjiang Environmental Co Ltd (HKG: 00895) at HK$1.98 per share. Institutions are actively trading within the stock, attracting retail interest. It surged again today, and its environmental protection theme also lifted China Water Affairs Group Ltd (HKG: 00855) by nearly 7%.
A US stock, GETY, went viral yesterday, closing up 109% with an intraday high nearly doubling. The reason was securing a 3-year exclusive data service contract with a large North American cross-border e-commerce group, with the contract value being 1.8 times the company's full-year revenue last year, leading the market to directly revalue its data monetization potential. Its business model is a data subscription SaaS, earning recurring subscription revenue through exclusive industry data barriers. The direct comparable stock in Hong Kong is Jinhong Group Co Ltd (HKG: 02603), which boasts profiles of 80 million global consumers, tens of millions of advertising materials, and a cross-border advertising ROI database. It uses this data internally to reduce costs and monetizes it externally through its Jimiao Cloud SaaS, perfectly replicating the GETY business model. Additionally, today is the A-share ex-dividend date for its 2025 rights issue, with a cash dividend of 1.80 yuan per 10 shares (tax inclusive). The implementation of the dividend plan attracted pre-dividend capital attention. It surged over 11% today.
Tesla's FSD has landed in its fifth European country. According to EVwire, Belgium recently officially approved the legal use of Tesla's FSD (Supervised) on its roads, becoming the fifth EU country to permit the system. Multiple European countries are accelerating the approval process for high-level intelligent driving assistance technology. Pony.ai Inc (HKG: 02026) is collaborating with Bolt and Stellantis to launch Robotaxi testing in Luxembourg; WeRide Corp (HKG: 00800) is partnering with Uber to launch Spain's first Robotaxi service. XIDI Technology Co Ltd (HKG: 03881) stands out for its unmanned mining trucks creating upward growth potential overseas, with the market anticipating orders from the Middle East. It rose over 3% today.
Today, capital shifted its focus significantly to the healthcare sector. Shandong Xinhua Pharmaceutical Co Ltd (HKG: 00719), under the Huagang Group, obtained a "Drug Clinical Trial Approval Notice" from the National Medical Products Administration for its self-developed Class 1 innovative drug LXH-2103 injection, rising over 13% today. Furthermore, the National Healthcare Security Administration announced the results of the second batch of reference drug pre-communication reviews. A total of 51 companies with 59 Class 1 new drugs across the two batches have completed reference drug determination. This news can be interpreted as locking in the price range before formal national reimbursement negotiations, completely ending the past dilemma where companies could only "negotiate blindly." Stocks with strong catalysts are performing well, such as Insilico Medicine (HKG: 03696) mentioned yesterday, rising another 7%+, and XtalPi Holdings Limited (HKG: 02228), which signed an agreement exceeding $400 million with an internationally renowned pharmaceutical company. The partner will pay an upfront fee to XtalPi and cover all early-stage R&D expenses. XtalPi will also receive preclinical, clinical, and commercial milestone payments, as well as future sales royalties. It rose over 5% today.
Longcheer Technology Co Ltd (HKG: 09611) announced that the preconditions set out in the equity transfer agreements for the acquisition of 60% equity in each of Kejuncheng Precision and Jiya Metal (the "Target Companies") have been fulfilled. It gained over 4% today.
To stabilize share prices now, substantial buybacks are key. For example, Geekplus Technology Co Ltd (HKG: 02590) announced a plan to repurchase shares on the market, with a total repurchase amount not exceeding HK$2 billion. The buyback plan will be executed within 24 months from the announcement date, with the number of shares repurchased not exceeding 10% of the total issued shares on the date of the annual general meeting. This essentially provides a company backstop, and the stock rose over 6% today.
Sector Spotlight
According to reports, "as the advanced process accelerates, TSMC's main 28nm production base, Fab15A, will cut 28nm output by more than 25% from early 2026." This facility is transitioning to 4nm, while TSMC is reallocating more 28nm capacity to interposer production, prompting some customers to shift to UMC and Vanguard International Semiconductor to meet the spillover demand. On the demand side: the expanding exposure to AI is driving resilient demand growth. On the supply side: overseas mature-node manufacturers are expanding capacity conservatively, while TSMC and Samsung continue to phase out mature processes (shifting to advanced processes or advanced packaging). The peak expansion of mature processes in Mainland China was from 2020-2022 (during the global chip shortage). Subsequently, three consecutive years of industry downturn led to losses, with improvement only starting this year. This dynamic has resulted in foundry utilization rates remaining robust even during the traditional off-season. As the electronics industry enters its peak season in the second half of the year, a scenario of "a stronger peak season" is expected. Key Hong Kong-listed stocks in this sector include: Huahong Grace Semiconductor Manufacturing Corporation (HKG: 01347), Semiconductor Manufacturing International Corporation (HKG: 00981), and ASMPT (HKG: 00522).
Stock in Focus
GON TECHNOLOGY (HKG: 02768): Multiple Sectors Poised for Growth; Capacity Release Drives Rapid Earnings Expansion. The company issued 127 million new shares via a capital reserve conversion, distributing 4.8 new shares for every 10 existing shares. The new A-shares were issued on June 18, 2026. Full-year 2025 revenue was 21.251 billion yuan (+10.57%), with attributable net profit of 852 million yuan (+24.3%). Q1 2026 revenue was 5.377 billion yuan (+21.86%), with attributable net profit of 257 million yuan, a year-on-year increase of 131.08% and a quarter-on-quarter increase of 13.45%.
Analysis: The company's growth rate has accelerated significantly, with new energy composite materials as the core growth engine. Its growth prospects are notable, with five major project plans involving total planned investment exceeding 3.8 billion yuan. These include an 8,000-ton/year high-purity dianhydride monomer and 10,000-ton/year polyimide polymer materials project, a 500-ton/year PSPI photoresist materials project, a 100,000-ton/year C9 mixed aromatics pre-hydrogenation project, a 20,000-ton/year isononyl ester and isononyl acid-based low-temperature lubricating grease project, and a 50,000-ton/year high-purity para-methylstyrene (PVT) green intelligent manufacturing project. Concentrated capacity commissioning will release growth elasticity. Expansion of new energy composite materials in Yixing and the overseas base in Thailand will gradually commence production from 2026–2027. HP-RTM and SMC capacity will double, matching secured orders from automakers/battery manufacturers. Composite materials business revenue growth is expected to maintain over 30%. Upstream resin integrated capacity continues to be released, further amplifying cost advantages, with gross margins continuously recovering. The energy storage business, as a second growth curve, is booming, driven by rising demand for domestic commercial & industrial storage and overseas residential storage. Composite material energy storage cabins and inverter casings are being delivered in bulk, with the energy storage segment's revenue, now separated from supporting charging piles, experiencing rapid growth.
Core Business Highlights: 1) The company's HP-RTM ultra-thin battery packs are already being mass-produced for multiple popular vehicle models. Secured projects cover multiple new platform models from 2026-2028. It is simultaneously developing composite material structural components for large energy storage battery cabins, entering the commercial & industrial energy storage track. It has secured long-term projects from CATL and BYD for multiple vehicle models, covering the period 2026–2028. Based on vehicle lifecycle calculations, this corresponds to long-term supply contracts worth billions of yuan, with continuous batch deliveries ongoing. 2) Stable, large-volume orders from Teledyne. The fourth-generation DC charging piles, lightweight wall panels for box-type substations, and dust covers are all transitioning to SMC composites, indicating vast metal substitution potential. Energy storage inverter and outdoor power supply casings continue to see volume growth. 3) R&D and implementation of carbon fiber lightweight structural materials, positioning in the long-term incremental track of lightweight components for the low-altitude economy. 4) Biological collagen and health & wellness. The company controls Dongbao Biology. After capsule capacity expansion, production capacity will reach 70 billion capsules. Collagen B2C consumer products are gaining volume, with demand from medical aesthetics and dietary supplements continuing to rise, unaffected by chemical industry cycles, enhancing overall profit stability.
Global expansion of high-end capacity. Leveraging its Hong Kong listing platform, the company is promoting the overseas expansion of modified materials and special engineering materials, while also investing in high-value-added fine chemicals like isononyl esters and syndiotactic polystyrene (SPS). The company's A+H financing funds have been secured, optimizing financial expenses and continuously improving net profit margins. Biological capsule capacity expansion is complete, adding to the profitability of the health & wellness segment. The overseas Thailand base supports new energy vehicle manufacturers in Southeast Asia, Europe, and America, opening up incremental overseas markets.
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