On July 17, the Hang Seng Index opened 0.06% higher, while the Hang Seng Tech Index declined by 0.05%.
The semiconductor sector experienced losses, with shares of Montage Technology Co., Ltd and GigaDevice Semiconductor (Beijing) Inc falling more than 3%. Huahong Grace Semiconductor Manufacturing Corporation dropped over 2%, and Semiconductor Manufacturing International Corporation declined more than 1%.
Regarding the market outlook, Guotai Haitong suggests a window for liquidity relief in Hong Kong stocks has arrived. It is anticipated that from mid-to-late July to mid-September, the micro-funding environment for Hong Kong stocks will enter a relief phase. This is due to the Hong Kong IPO market entering a traditionally quieter season, expected to last until the end of September, coupled with the passing of the peak period for share lock-up expirations in early July. Subsequent large-scale expirations exceeding HK$30 billion are not expected until at least the end of September. The possibility of a correction in overseas interest rate hike expectations is also increasing.
Shanghai Securities notes that leading domestic AI pharmaceutical companies are achieving innovative breakthroughs. These firms are intensifying efforts in areas such as the discovery and development of innovative drug candidate molecules and material research, strengthening diversified business layouts, and accelerating the transition from the proof-of-concept stage to realizing clinical value and achieving industrial implementation. It is suggested to monitor companies like Jitai Technology.
Huafu Securities believes that with the rapid recovery in financing amounts and project numbers, the growth rate of new orders for preclinical CRO (Contract Research Organization) services in 2025 is expected to surge to approximately 40%. As previously secured low-price orders are gradually fulfilled, the robust growth in new orders is projected to translate into a clear inflection point for both revenue and profit for the sector in 2026.
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