Hong Kong's stock market continued its upward momentum on Friday, with all three major indices advancing. The US Treasury's intervention in long-dated bonds ignited the "US debt credibility damage" narrative, keeping gold ETFs strong, while nonferrous metals followed the precious metals complex higher. At the close, the Hang Seng Index rose 1.21% to 26,009.46 points, with full-day turnover reaching HK$257.277 billion, and the Hang Seng Tech Index climbed 1.4% to 4,766.16 points.
Among the top Hong Kong-listed ETFs by scale, Tracker Fund (02800) closed up 1.07% at HK$26.5, Hang Seng China Enterprises (02828) gained 0.82% to HK$89, and Hang Seng High Dividend Yield (03466) rose 0.7% to HK$20.24.
US Treasury Intervention Fuels Gold Rally
The US Treasury's intervention in long-dated bonds stoked the "US debt credibility damage" logic, keeping gold ETFs strong. At the close, Guotai Gold Stocks ETF (517400.SH) surged 4.74% to 1.791 yuan, Yongying Gold Stocks ETF (517520.SH) climbed 4.6% to 2.273 yuan, and ChinaAMC Gold Stocks ETF (159562.SZ) advanced 4.18% to 2.469 yuan.
The US Treasury announced plans to at least double the scale of its buyback operations for longer-dated bonds, a move widely interpreted as an "implicit cap" on long-end yields. This reinforced expectations that US debt is unsustainable, pushing COMEX gold futures above US$4,600 per ounce on the day, marking a fresh cyclical high. Spot gold also broke through its 200-day moving average (around US$4,511), which technical analysts view as a strongly bullish signal.
CITIC Futures noted that the one-off buyback impact should not be directly extrapolated as a trend of easing. The key going forward is whether the decline in long-end US Treasury yields can be sustained and whether capital inflows can broaden further. If yields resume their upward path, gold could face profit-taking after its sharp surge. Still, US medium-term fiscal expansion and debt constraints continue to support gold's allocation value.
Nonferrous Metals Follow Precious Metals Higher
The nonferrous metals sector rallied in tandem with the precious metals complex. At the close, Southern Nonferrous Metals ETF (512400.SH) gained 3.29% to 1.946 yuan, China Universal Nonferrous ETF (159652.SZ) rose 2.93% to 1.684 yuan, and ChinaAMC Nonferrous Metals ETF (516650.SH) added 2.81% to 1.902 yuan.
On the fundamental side, data from the China Nonferrous Metals Industry Association shows that total profits of large-scale nonferrous metal enterprises in the first half of 2026 reached 418.39 billion yuan, a year-on-year surge of 94%. The dense release of interim results provides solid valuation support for the sector. On the supply front, the US plans to impose tiered tariffs on copper semi-finished products starting in 2027, while global copper inventories remain at extremely low levels. Lithium carbonate futures have rebounded, and rare earth exports continue to show a trend of "shrinking volumes with rising prices," highlighting the scarcity value of strategic resources.
Cinda Securities believes the core catalyst for the nonferrous metals sector is the sharp rise in gold prices, mainly driven by the US Treasury's expanded long-dated bond buyback program, which reflects the unsustainable risk of US debt. The news also dragged the US dollar and long-end Treasury yields notably lower, benefiting both gold and silver prices.
Institutional Outlook
Zhongtai Securities analysts point out that the US long-term bond market is sending a distinctly different signal. "Bond vigilantes" refer to investors who, driven by concerns over fiscal discipline, inflation expectations, and even credit risk, exert pressure on debt issuers by aggressively selling long-dated bonds, forcing them to restore fiscal discipline. The firm advises investors to remain vigilant on related markets and sectors while keeping a close watch on the precious metals segment—the counterweight to US debt credit—as well as non-AI-related industrial metals.
New ETF Listings
The N Science and Technology Innovation 200 ETF Huabao (589460.SH) made its debut, closing up 0.1% at 0.98 yuan with turnover of 15.8144 million yuan. The fund tracks the Shanghai Stock Exchange Science and Technology Innovation Board 200 Index, covering the "small-cap plus hard tech" space, with sector allocations spanning electronics, machinery and equipment, pharmaceuticals and biotechnology, and electrical equipment.
The Chemical Industry ETF ChinaAMC (159082.SZ) also debuted, closing up 0.3% at 0.999 yuan with turnover of 58.2709 million yuan. The fund tracks the CSI Subdivided Chemical Industry Theme Index, with its top ten heavyweight stocks spanning leaders across various chemical sub-sectors.
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