Major indices in Hong Kong declined throughout the trading session on Wednesday, pressured by a broad sell-off in the Asia-Pacific region triggered by rising U.S. Treasury yields. The benchmark Hang Seng Index closed below the 26,000-point level.
By the close, the Hang Seng Index had fallen 1.62%, or 426.31 points, to 25,962.73. The Hang Seng Tech Index dropped 2.66% to 4,941.14, while the Hang Seng China Enterprises Index declined 1.89% to 8,691.03. For the week, the Hang Seng Index lost 1.63%, the HSCEI fell 2.23%, and the Hang Seng Tech Index retreated 3.17%.
**Blue-Chip Performance** SMIC (00981) opened higher but closed down 0.49% at HK$71.15. The chipmaker reported its first-quarter results, with revenue rising 8.1% year-on-year to RMB 17.62 billion and net profit attributable to shareholders increasing 0.4% to RMB 1.36 billion. For the second quarter, the company guided for a revenue increase of 14% to 16% sequentially and a gross margin of 20% to 22%, an improvement of 2 percentage points from the previous quarter's guidance.
Among other blue-chips, Midea Group (00300) rose 1.83% to HK$91.65, contributing 1.45 points to the HSI. Tencent Holdings (00700) gained 0.33% to HK$456.40, adding 1.16 points. Hua Hong Semiconductor (01347) fell 8.74% to HK$115.90, dragging the index down by 12.6 points. Ali Health (00241) dropped 6.61% to HK$4.24, pulling the HSI down by 2.75 points.
**Sector Highlights** Most major tech stocks closed lower, with Alibaba falling over 4%, while Tencent bucked the trend with a slight gain.
The robotics sector was a notable outperformer, with stocks rising on news that Tesla's Optimus V3 is expected to debut around mid-year, marking a phase of mass production competition in the industry. Coal chemical stocks also advanced.
Conversely, non-ferrous metals stocks came under pressure due to rising U.S. bond yields. PCB concepts, airline stocks, chipmakers, and automotive stocks mostly trended lower.
1. **Robotics Concept Gains on Industry Developments** Zhaowei Machinery & Electronics (02692) surged 9.63% to HK$70. ESTUN (02715) rose 6.8% to HK$15.24. Sanhua Intelligent Controls (02050) climbed 6.84% to HK$35.92. UBTech (09880) added 3.36% to HK$110.60.
Tesla's Optimus V3 is anticipated to launch around mid-2026, with formal production starting between July and August, and external application scenarios expected in 2027. Unitree Robotics launched its R1 series dual-arm humanoid robot with a starting price of only RMB 26,900, its lowest-priced humanoid product to date.
2. **Gold Stocks Decline Amid Rising Fed Rate Expectations** MMG (01208) fell 7.54% to HK$9.57. Chifeng Jilong Gold Mining (06693) dropped 5.99% to HK$37.64. Lingbao Gold (03330) declined 5.3% to HK$19.83.
U.S. Treasury yields rose sharply this week, with the 30-year yield surpassing 5% and the benchmark 10-year yield breaking above 4.5%. The U.S. dollar index also rose above 99 on Friday, its highest level since April 13. This shift in market expectations regarding future Federal Reserve monetary policy has increased adjustment pressure on gold.
3. **Airlines Extend Losses as Fare Hikes May Not Cover Costs** China Eastern Airlines (00670) dropped 6.09% to HK$3.70. China Southern Airlines (01055) fell 4.38% to HK$3.93. Air China (00753) declined 3.81% to HK$4.80.
Reports indicate that some ticketing agents have received notices from airlines about a planned increase in domestic fuel surcharges effective May 16th. Analysts note that the rapid rise in fuel costs is difficult to pass through, with global airlines cutting flights to counter high oil prices. Recent fare increases may be insufficient to cover the cost surge, pressuring short-term profitability while demand is also impacted by higher ticket prices.
**Notable Movers** * **Tianyu Semiconductor (02658)** surged 22.62% to HK$56.65. Industry reports suggest Samsung Electronics is adjusting its SiC (silicon carbide) strategy, potentially restarting related business initiatives. Tianyu has entered a technical cooperation with Korea's EYEQ Lab to jointly develop 8-inch SiC substrate technology. * **Lens Technology (06613)** rose 5.23% to HK$21.92. The company's chairman was reportedly seen at a recent event in the U.S. alongside CEOs from Tesla, Nvidia, and Apple. Some institutions point to potential growth from the company's foldable screen and embodied AI-related businesses in the second half of the year. * **CARsgen Therapeutics-B (02171)** plunged 10.04% to HK$19.72. The company announced a proposed top-up placement of up to 23.7 million shares at HK$19.84 per share, a discount of approximately 9.49% to the previous close, to raise net proceeds of about HK$462 million. * **Yinuo Medicine-B (02591)** fell 9.45% to HK$12.36, nearing its historical low. The lock-up period for its cornerstone investors expired, with a total of 4.201 million shares becoming freely tradable. The company reported an annual net loss of RMB 341 million, widening by 95.4% year-on-year. * **Man Wah Holdings (01999)** declined 6.15% to HK$3.97. The furniture maker reported its annual results, showing a 2.89% decrease in total revenue to HK$16.75 billion and a 12.13% drop in profit attributable to shareholders to HK$1.81 billion. The profit decrease was attributed to lower revenue, reduced gross margin, and increased selling and distribution expenses. * **Innovent Biologics (01801)** fell 5.42% to HK$82.00. The company's founder, chairman, and CEO recently sold 1.353 million shares at an average price of HK$89.362 per share, raising approximately HK$121 million. His stake decreased to 7.49%, though he remains the largest shareholder.
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