The Hang Seng Index opened down 0.25%, while the Hang Seng Tech Index fell 0.04%. In terms of market sectors, the memory chip segment performed strongly, with Gigadevice Semiconductor rising 6% and Montage Technology gaining over 3%. The nonferrous metals sector also advanced, with Aluminum Corporation of China up nearly 2% and Zijin Mining Group rising close to 1%.
Regarding the future outlook for Hong Kong stocks, Guotai Junan Securities stated that the core significance of US-Iran negotiations lies not in a temporary easing of market risk appetite but in defining the boundaries of risk. Subsequently, investors may become increasingly desensitized to risk factors while growing more responsive to positive developments.
China Galaxy Securities commented that if the US-Iran conflict sees substantive easing, Hong Kong tech stocks, being the sector most affected by risk sentiment, would demonstrate the strongest rebound potential.
HSBC Qianhai indicated in a report that after experiencing a significant correction from its peak in the fourth quarter of 2025, the Hang Seng Tech Index now presents attractive valuations. Combined with the potential for AI to expand revenue opportunities in areas such as advertising, the firm maintains an overall positive view on the index.
Morgan Stanley expressed that looking toward the year-end, it continues to favor A-shares, projecting a moderate upside of approximately 5-10% for Chinese stocks by year-end. This outlook is primarily driven by easing competition in e-commerce, a more balanced index composition, and the emerging advantages in upstream/green technology sectors. The firm reiterated its year-end target of 27,500 points for the Hang Seng Index and 90 points for the MSCI China Index.
The report noted that Chinese stocks have underperformed major Asian peers year-to-date, mainly due to continued pressure on the heavyweight internet sector amid the "ByteDance effect" and intensified e-commerce competition, which has overshadowed solid gains in sectors like energy, materials, industrials, semiconductors (core holdings), and healthcare. Due to index compilation rules, better-performing upstream/tech companies have insufficient weightings in the indices, leading to an underestimation of the overall performance of Chinese stock markets.
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