The Hong Kong stock market's three major indices closed with mixed results.
The Hang Seng Index edged down 0.04% to finish at 25,132.29 points, while the Hang Seng Tech Index gained 1.32%. The Hang Seng China Enterprises Index declined by 0.25%.
Technology stocks were mixed in today's session. Lenovo Group Ltd surged over 8%, while JD.com, Inc. gained nearly 1%. Conversely, shares of Meituan, Baidu, Inc., Xiaomi Corporation, and NetEase, Inc. all fell more than 1%.
Semiconductor Sector Performance
The semiconductor sector experienced a significant rally, with Huahong Grace Semiconductor Manufacturing Corporation soaring over 17%. Reports indicate that Taiwan Semiconductor Manufacturing may increase prices for its mature-node chips in early 2027. This would mark the first price hike for non-advanced process nodes in over three years, signaling that the AI-driven demand boom is expanding from GPUs and high-performance computing into areas like power management chips and power devices.
PCB Sector Leads Gains
The printed circuit board (PCB) sector was among the top performers, with Kingboard Laminates Holdings Ltd climbing more than 12%. Analysis suggests overseas demand for computing power will enter a concentrated breakout phase starting in the third quarter. The launch of NVIDIA's Rubin NVL144 server rack, featuring an architecture-level innovation, is expected to drive a simultaneous revaluation of three key hardware segments: server racks, PCBs, and optical modules.
Gold Stocks Rally in Afternoon Session
Gold stocks saw a notable uptick in the afternoon, with Zijin Mining Group Co., Ltd. advancing over 10%. The price of gold has stabilized above the key $4,000 per ounce level. After a period of significant decline, gold's ability to hold this psychological support level has provided a foundation for related equities. Following a deep correction in the first half of the year, valuations in the gold sector have retreated substantially. Analysts note that gold mining companies now offer attractive risk-reward profiles and are poised to benefit from both valuation recovery and potential upside from rising gold prices. Gold equities are seen as leveraged plays on the gold price, offering greater upside during rallies due to their earnings elasticity and growth attributes.
Oil Stocks Decline Broadly
Oil stocks were broadly lower, with CNOOC falling more than 1%. Oil prices experienced a short-term decline following signals of easing tensions between the US and Iran. Reports indicate that mediators have proposed a 10-day ceasefire to Iran, aimed at de-escalating the current situation and seeking to restore the implementation of a memorandum of understanding reached last month.
KNOWLEDGE ATLAS Soars Over 36%
Shares of KNOWLEDGE ATLAS surged more than 36%. The company has completed the construction of a 1GW-class domestic AI computing data center, which exclusively utilizes domestically produced AI chips. Concurrently, the company formally completed its acquisition of XCore Sigma, a domestic AI heterogeneous computing software firm. XCore Sigma, originating from the Chinese Academy of Sciences' compilation laboratory, has deep expertise in heterogeneous computing software stacks and compilation optimization, and is regarded as one of China's top AI infrastructure teams.
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