Hong Kong's three major stock indices all closed lower on August 11. The Hang Seng Index fell 1.1% to 25,652.82, the Hang Seng Tech Index dropped 1.93%, and the Hang Seng China Enterprises Index lost 1.09%.
Internet stocks broadly declined, with Kuaishou and Xiaomi falling over 3%, while JD.com, Baidu, Tencent, and Bilibili each dropped more than 2%. Gold stocks also weakened, with Lingbao Gold plunging over 8%. The PCB sector was among the worst performers, as Shengyi Technology slid over 5%. In contrast, oil stocks rallied against the trend, with CNOOC climbing over 3%.
Gold stocks weaken
Gold stocks declined, with Lingbao Gold falling over 8%. London spot gold broke through the $4,400 per ounce mark today, hitting a high of $4,435.25 per ounce, before sharply reversing and losing that level, turning from gains to losses intraday. Huatai Futures believes that precious metals have reacted relatively mildly to changes in the oil price center in the current environment, with gold and oil prices often rising together. If there is no clear sign of geopolitical escalation or a substantive breakdown in negotiations, precious metals may continue to trade in a high-range consolidation pattern, pricing in expectations of fading rate hikes. Therefore, the firm expects gold prices to maintain a volatile but slightly firm trend in the near term.
PCB sector sees sharp decline
The PCB sector was among the top decliners, with Shengyi Technology dropping over 5%. While the PCB industry's momentum remains strong, with the supply chain significantly ramping up capacity expansion, this has raised concerns about potential overcapacity. Wus Printed Circuit warned that aggressive capacity expansion by peers to gain market share could lower the overall technical barrier for the industry as new supply comes online. This would intensify competition, pressure corporate profits, and, as high-end hardware demands higher PCB technical standards, the industry may see many new entrants but only a few leading players able to achieve stable profitability, leading to greater differentiation.
Oil stocks rally
Oil stocks bucked the trend, with CNOOC rising over 3%. International oil prices surged as an agreement to reopen the Strait of Hormuz remained elusive. The WTI crude oil September contract jumped 5.1% to $82.13 per barrel, while Brent crude October contract gained 5% to $87.72 per barrel. Ongoing tensions in the Middle East have left shipowners reluctant to enter the Strait of Hormuz, pushing up crude oil transportation costs. Growing concerns over supply risks have fueled the rally in the oil and petrochemical sector.
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