Key Market Developments: Seagate and Western Digital Reach Record Highs; Morgan Stanley Predicts HDD Shortage to Last Until 2028
In overnight US trading, Seagate Technology PLC (STX) shares surged 9% to $1018, while Western Digital (WDC) shares jumped over 16% to $653. Both companies achieved new all-time intraday highs. In a research report released on Monday, Morgan Stanley indicated that the hard disk drive (HDD) shortage is anticipated to extend through 2028, with pricing for these products showing "significant and meaningful strengthening." Erik Woodring, head of US Technology Hardware Equity Research at Morgan Stanley, noted that channel checks over the past three weeks reveal "demand for hard drives continues to strengthen and the scope of demand growth is expanding," alongside a "meaningful potential for upside in hard drive pricing."
Supply chain sources suggest that as NVIDIA's (NVDA) Vera Rubin platform is scheduled for shipment in the second half of 2026 and HBM4 enters mass production, major cloud service providers are ramping up investments in AI data center expansion, intensifying competition for storage capacity. Upstream capacity is largely being directed towards NVIDIA AI servers and CSP demand, with nearly all 2027 capacity already committed to CSP clients. The global memory market is currently experiencing an AI-driven "super cycle." In Q1 2026, global memory revenue increased by over 80% quarter-on-quarter, with contract prices for DRAM and NAND flash memory continuing to rise, strengthening suppliers' pricing power amid industry supply-demand imbalances.
Hong Kong-listed stocks related to hard drives and storage concepts include: VSTECS Holdings Ltd (00856), GigaDevice Semiconductor Inc (03986), Montage Technology Co Ltd (06809), SMIC (00981), and Huahong Grace Semiconductor Manufacturing Corporation (01347).
Market Outlook
Nasdaq Composite Index closed at 26,683.94 points, up 3.07%.
In overnight US markets, the Dow Jones Industrial Average rose 468.77 points, or 0.92%, to close at 51,671.03. The S&P 500 gained 122.83 points, or 1.65%, to finish at 7,554.29. The Nasdaq Composite surged 795.1 points, or 3.07%, to settle at 26,683.94. Major tech stocks broadly advanced: Marvell Technology rose over 10%, Arm Holdings climbed over 8%, AMD gained nearly 7%, while Qualcomm, Meta Platforms, and Oracle each increased over 4%. NVIDIA (NVDA) rose over 3%, with Alphabet, Intel, and Microsoft each up over 2%. SpaceX soared 19.6%, boosting its total market capitalization to $2.52 trillion.
Storage concept stocks rallied sharply, with Western Digital (WDC) up over 16% and Micron Technology (MU) rising over 10%. Most popular US-listed Chinese stocks gained, with the Nasdaq Golden Dragon China Index up 0.39%. The Hang Seng Index ADRs also rose, closing at 24,911.57 points on a proportional basis, up 68.90 points or 0.28% from the Hong Kong close.
NYMEX WTI crude oil futures for the front-month contract fell $3.72, or 4.38%, to settle at $81.16 per barrel. COMEX gold futures for the front-month contract gained $92.20, or 2.18%, to close at $4,331.0 per ounce.
Key Developments to Watch
Iran to Impose Fees on Shipping Services Related to the Strait of Hormuz
According to Iranian media reports on the 15th, Iranian Foreign Ministry spokesman Bagheri stated that Iran will be responsible for managing safe passage through the Strait of Hormuz for a "specific period" and will charge fees for related shipping services.
HBM-B (02142) and Baidu's BioMap to Jointly Establish MegaStream TechBio, Aiming to Build a Globally Competitive AI R&D Ecosystem
Under a strategic cooperation framework, the company and BioMap will jointly establish a next-generation AI pipeline R&D company targeting the global market—MegaStream TechBio. MegaStream will integrate "exclusive big data × proprietary large models × a large portfolio of innovative pipelines" and construct an AI R&D engine centered on an advanced integrated intelligent dry-wet closed-loop experimental discovery platform and personalized, multi-modal, multi-attribute generative large models. MegaStream will focus on major unmet clinical needs in cardiovascular, renal, oncology, and anti-aging fields, with First-in-Class and Best-in-Class assets as its core R&D benchmarks. The core management team of MegaStream is expected to comprise senior executives from multinational biopharmaceutical companies and top experts in the artificial intelligence field, with relevant personnel currently being onboarded.
CSPC Pharmaceutical Group Limited (01093): Albumin-bound Paclitaxel for Injection (II) Approved for Market
CSPC Pharmaceutical Group Limited (01093) announced that its self-developed Albumin-bound Paclitaxel for Injection (II) (100mg) has received approval for market launch from China's National Medical Products Administration, making it the world's first fast-dissolving albumin-bound paclitaxel formulation. This product is an innovative anti-tumor nano-formulation developed by the group, utilizing innovative formulation and preparation processes, with related patents authorized in major countries including China, the US, and Europe. Its indication is for metastatic breast cancer after failure of combination chemotherapy or breast cancer recurring within 6 months after adjuvant chemotherapy (unless clinically contraindicated, prior chemotherapy should have included an anthracycline anticancer drug).
CRRC Corporation Limited (01766): CRRC Capital, Huayu Zhengdao, and Other Investors Establish Huayu Guoke Zhanxin (Suzhou) Venture Capital Fund Partnership
On June 15, 2026, CRRC Capital, Huayu Zhengdao, and other investors jointly signed the partnership agreement for the Huayu Guoke Zhanxin (Suzhou) Venture Capital Fund Partnership (provisional name). The partnership term is set for 12 years, with a fund duration of 8 years—comprising a 5-year investment period and a 3-year exit period, which can be extended by 1 year with consent from all partners. The total capital commitment from all partners is RMB 1.5 billion, with CRRC Capital, as a limited partner, committing RMB 570 million, and Huayu Zhengdao, as the general partner and private fund manager, committing RMB 30 million.
Everest Medicines (01952) Granted Exclusive License by Dimerix to Develop and Commercialize DMX-200 in Greater China, South Korea, and Certain Southeast Asian Countries
Under this exclusive license, the company's payment obligations include: (i) an upfront payment of $10 million; (ii) potential development and regulatory milestone payments of up to $30 million; (iii) potential sales milestone payments of up to $300 million; and (iv) potential tiered royalties on future annual net sales, ranging between 10% and 15%. The announcement stated that this transaction is expected to further strengthen the company's nephrology product portfolio and pipeline synergies, consolidating its strategic position in the fields of kidney and autoimmune diseases.
Andre Juice Co., Ltd. (02218) Plans to Acquire Partial Equity in Yongqiang Technology from Shareholders JIANGQI HE, QIANG YUAN, and Ningbo Yuanlu Zai Technology Partnership
The total consideration for this transaction is preliminarily estimated to be between RMB 600 million and RMB 800 million, subject to the final valuation. This preliminary transaction is not expected to constitute a major asset restructuring. The target company is a high-tech enterprise specializing in the R&D, production, and sales of integrated circuit electronic information interconnect materials. The target company has built an annual production capacity of 10 million square meters of high-speed, high-frequency, and BT-class substrate electronic information interconnect materials in the Beilun District Integrated Circuit Industry Cluster Base in Ningbo. It has established a closed-loop ecosystem from design, packaging, systems, to substrate materials. Its direct customers include Shenghong Technology, Shennan Circuits, Wus Printed Circuit, Shengyi Electronics, Founder Technology, Guanghe Technology, Xingsen Technology, and Via Semiconductor, with end customers including Inspur Information, Sugon, H3C, and Zhongji Innolight.
Pujiang International Group Limited (01417) Change in Control; Receives Mandatory Unconditional Cash Offer from Sun Taoyong, Chairman of Weimob Group (02013), at Approximately 72.25% Discount
Under Rule 26.1 of the Takeovers Code, the offeror is required to make a mandatory unconditional cash offer for all issued shares of the company (excluding shares already owned and/or agreed to be acquired by the offeror and its concert parties). The offer price is HK$0.519 in cash per offer share, representing a discount of approximately 72.25% to the closing price of HK$1.870 per share on the Stock Exchange on June 12, 2026. Mr. Sun Taoyong is the sole director of the offeror and its ultimate beneficial owner. Mr. Sun is also the founder of Weimob Inc., a company incorporated in the Cayman Islands and listed on The Stock Exchange of Hong Kong Limited (02013). Mr. Sun currently serves as the Chairman of the Board, Executive Director, and Chief Executive Officer of Weimob Inc.
Midland Holdings Limited (01200) Issues Profit Alert, Expects Significant Growth in Interim Pre-tax Profit and Profit Attributable to Equity Holders, Reaching a 20-Year High
Midland Holdings Limited (01200) announced that based on the group's available information and a preliminary review of its unaudited consolidated management accounts for the five months ended May 31, 2026, the group achieved a pre-tax profit of approximately HK$300 million. This represents an increase of about 69% compared to the pre-tax profit of approximately HK$178 million for the six months ended June 30, 2025. The group expects its pre-tax profit and profit attributable to the company's equity holders for the six months ended June 30, 2026, to show significant growth and anticipates reaching a 20-year high for interim results.
CITIC Resources Holdings Limited (01205) Issues Profit Alert, Expects Interim Shareholders' Attributable Comprehensive Profit of Approximately HK$238 Million to HK$322 Million, Up About 57% to 112% Year-on-Year
CITIC Resources Holdings Limited (01205) announced that the group expects to record an unaudited comprehensive profit attributable to shareholders of approximately HK$238 million to HK$322 million for the six months ended June 30, 2026 (the relevant period), representing an increase of approximately 57% to 112% compared to the comprehensive profit attributable to shareholders of approximately HK$152 million for the same period last year. The expected increase in unaudited comprehensive profit attributable to shareholders for the relevant period is primarily due to a significant year-on-year increase in the average selling price of crude oil sold by the group in the first five months of 2026.
Stock in Focus
SICC (02631): AI Power Supplies Expected to Drive Nearly 8-Fold Growth in SiC Substrate Demand
NVIDIA's push for data center power architecture upgrades to 800V high-voltage DC is significantly boosting the value and penetration rate of silicon carbide. According to Citrini Research estimates, within the BOM cost for power conversion in a 1MW AI cabinet, wide-bandgap devices like SiC and GaN account for 64% of the new cost. The SiC market size is projected to grow from $3.5 billion in 2024 to $12.4 billion by 2030, with AI infrastructure contributing nearly half of the demand. Public information shows that SICC is the absolute leader in domestic SiC substrates. Its 8-inch substrates have achieved volume supply, and its 12-inch product is a global first, having indirectly entered NVIDIA's supply chain. Huaxi Securities recently pointed out that with the explosion in demand for AI power supplies, the demand for SiC substrates in the AI power supply field alone is expected to approach RMB 70 billion by 2030, representing nearly an 8-fold growth.
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