Hong Kong's three major indices staged a rebound, with the benchmark index rising as much as 2% during the session. By the close, the Hang Seng Index had gained 1.93%, or 468.81 points, to finish at 24,718.1 points, with the day's turnover reaching HK$3.16 trillion. The Hang Seng China Enterprises Index rose 1.91% to 8,374.43 points, and the Hang Seng Tech Index advanced 1.06% to 4,705.2 points. For the week, the Hang Seng Index fell 0.98%, the HSCEI declined 0.74%, and the HSTECH lost 3.75%. Some analysts suggest the Hong Kong market offers attractive risk-reward profiles and may see catch-up gains, potentially resonating with the broadening AI theme from US markets. Sector rotation from technology to non-tech sectors like consumption and property is also anticipated, while the market has not yet priced in expected quarter-on-quarter earnings per share (EPS) improvements, leaving room for valuation recovery.
Blue Chip Performance
CHOW TAI FOOK (HKEX: 01929) shares hit a more than three-month high, closing up 15.2% at HK$12.81 with a turnover of HK$14.38 billion, contributing 5.16 points to the Hang Seng Index. The company reported annual results for the period ending March 31, 2026, showing revenue of HK$94.398 billion, a year-on-year increase of 5.3%. Profit attributable to shareholders was HK$9.004 billion, surging 52.2% year-on-year. A final dividend of HK$0.45 per share was proposed, bringing the total annual dividend to HK$0.67 per share, up 28.8% from the previous year.
Among other blue chips, China Molybdenum Co., Ltd. (HKEX: 03993) rose 12.17% to HK$18.8, contributing 11.81 index points. Zijin Mining Group Co., Ltd. (HKEX: 02899) gained 7.9% to HK$31.4, adding 21.08 points. Conversely, SMIC (HKEX: 00981) fell 2.25% to HK$71.65, dragging the index down by 10.59 points, and China Unicom (Hong Kong) Limited (HKEX: 00762) declined 2.17% to HK$7.2, subtracting 1.48 points.
Key Sector Movements
Major technology stocks mostly recovered, with Alibaba and Tencent posting gains. A dramatic shift in Middle East tensions and a subsequent pullback in international oil prices spurred a broad rebound in airline and non-ferrous metal stocks. The innovative drug sector performed strongly amid continued high activity in BD (business development) transactions. Brokerages, insurers, and other major financial stocks also rose. On the downside, semiconductor and PCB (printed circuit board) concept stocks opened high but closed lower, with some names falling nearly 5%. Solar photovoltaic and telecommunications stocks showed weakness.
1. Non-ferrous Metals Rebound
Copper, gold, and other non-ferrous metal stocks rebounded. Lingbao Gold Group Ltd. (HKEX: 03330) closed up 12.43% at HK$15.38. China Molybdenum Co., Ltd. (HKEX: 03993) gained 12.17% to HK$18.8. Chifeng Jilong Gold Mining Co., Ltd. (HKEX: 06693) rose 10.63% to HK$27.68. Jiangxi Copper Company Limited (HKEX: 00358) advanced 8.89% to HK$34.54.
The Middle East situation saw a dramatic reversal, leading to a sharp drop in international oil prices and significantly easing inflation expectations. Furthermore, analysts note that metals critical for computing power face a structural supply gap due to the rapid development of the AI industry, supporting a sustained high-growth outlook. The long-term drivers for precious and base metals remain intact, with expectations for interest rate adjustments providing a window for strategic allocation.
2. Airlines Sector Rises Collectively
Airline stocks collectively moved higher. China Eastern Airlines Corporation Limited (HKEX: 00670) closed up 8.92% at HK$3.42. Air China Limited (HKEX: 00753) gained 5.71% to HK$4.44. China Southern Airlines Company Limited (HKEX: 01055) rose 5.56% to HK$3.61.
The easing of US-Iran tensions drove down international oil prices, which is expected to significantly alleviate cost pressures for airlines. A recent industry forecast projected jet fuel costs to rise substantially by 2026. Analysts point out that domestic jet fuel prices were lowered in June, and the coverage ratio of fuel surcharges increased compared to May. With the summer travel season approaching post-exams, anticipated strong demand coupled with lower oil prices is expected to support airlines' ability to pass on costs.
3. Innovative Drug Concept Shines
Innovative drug concept stocks delivered a strong performance. GenScript Biotech Corporation (HKEX: 01548) closed up 9.97% at HK$13.02. InnoCare Pharma Limited (HKEX: 09969) gained 7.25% to HK$11.1. RemeGen Co., Ltd. (HKEX: 09995) rose 7.04% to HK$74.55. KeyMed Biosciences Inc. (HKEX: 02162) advanced 5.49% to HK$58.6.
The total value of China's innovative drug out-licensing deals exceeded $60 billion in the first quarter of this year, indicating that overseas expansion has evolved from sporadic major deals to a sustainable industrial capability. Additionally, the number and academic level of Chinese studies selected for major international conferences continue to rise. Analysts believe the healthcare sector, especially Hong Kong-listed innovative drug stocks, experienced a downtrend in the first half due to various macro factors. Valuations for both innovative and non-innovative drug segments have fallen to historical lows. The second half of the year will focus on policy variables and the realization of clinical data, with investment strategies seeking hard-tech in healthcare and considering corporate cash value.
4. Major Financial Stocks Advance
Brokerage, insurance, and other major financial stocks moved higher. New China Life Insurance Company Ltd. (HKEX: 01336) closed up 5.33% at HK$51.55. China International Capital Corporation Limited (HKEX: 03908) gained 6.05% to HK$19.62. CITIC Securities Company Limited (HKEX: 06030) rose 5.73% to HK$26.18. China Merchants Securities Co., Ltd. (HKEX: 06099) advanced 4.06% to HK$15.9.
A major financial forum is scheduled for mid-June. Analysts note that the brokerage sector's operating environment continues to improve, with expectations for strong second-quarter earnings growth, policy catalysts materializing, and fading liquidity concerns. The sector may also see potential catalysts across businesses like technology innovation, wealth management, and overseas expansion, potentially leading to improvements in both earnings and valuation in the second half. For insurers, the ongoing decline in liability costs and gradual optimization of long-term assessment mechanisms are expected to enhance the allocation value of equity assets, particularly those with high dividends, low valuations, and stable cash flows.
Notable Movers
Minglue Technology - W (HKEX: 02718) continued its ascent, closing up 21.17% at HK$245.0. Recent industry commentary on the evolution of AI towards agentic systems, capable of autonomous observation and reasoning, aligns with the company's vision of agents evolving from cloud-based tools to digital colleagues on the device side.
COSCO Shipping Energy Transportation Co., Ltd. (HKEX: 01138) traded higher throughout the day, closing up 8.88% at HK$14.23. Analysts indicate that the fading risk premium from earlier geopolitical conflicts and vessel migration have led to oversupply in certain shipping routes. However, in the medium to long term, low global crude inventory levels and strategic restocking by nations are expected to drive incremental shipping demand, supporting future freight rates.
Liqin Resources Inc. (HKEX: 02245) issued a positive profit alert, closing up 8.55% at HK$14.6. For the six months ending June 30, 2026, the company expects revenue between approximately RMB 24.5 billion and RMB 27.0 billion, representing year-on-year growth of about 35.0% to 48.8%. Net profit attributable to owners is forecast to be between approximately RMB 2.25 billion and RMB 2.5 billion, an increase of about 57.3% to 74.8%.
Li Auto Inc. (HKEX: 02015) saw its shares rise in the afternoon session, closing up 7.24% at HK$57.0. The company announced that its new Li L8 model will officially launch on June 23, positioned as a "five-seat flagship SUV with no compromises." Analysts note the company is in a product transition phase, with the new model featuring substantial upgrades in dimensions, powertrain, intelligent hardware, and seating layout, expected to boost deliveries.
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