Hong Kong stocks continued their upward trajectory today, buoyed by strength in the traditional internet and biopharmaceutical sectors. As of July 6th, the Hang Seng Biotech Index has climbed more than 12% over the last three trading days of the second half of 2026. Meanwhile, shares of Zhipu AI experienced a sharp decline ahead of a share lock-up expiration.
Hong Kong Market Extends Rebound
On July 6th, the three major Hong Kong stock indices all closed higher, continuing the recent rebound. The Hang Seng Index finished up 1.14%, having risen as much as 1.4% intraday. The Hang Seng China Enterprises Index and the Hang Seng Tech Index gained 1.46% and 0.94%, respectively. Southbound capital recorded a net inflow exceeding HK$20 billion for the day.
In terms of market performance, the traditional internet sector and innovative drug stocks were the primary drivers of the gains. Conversely, PCB (printed circuit board) concept stocks saw significant declines, with the semiconductor and optical communications sectors also falling. Zhipu AI's shares dropped nearly 15%, weighing on the broader AI application stock group. The company has announced that a certain number of its locked-up shares will become eligible for trading on July 8th.
Tencent Sees Heavy Trading Volume
Within the Hang Seng Tech Index constituents, traditional internet stocks extended their rebound. Kuaishou Technology surged close to 8%, while Meituan, Tencent, and JD Health all rose more than 4%. Bilibili, NetEase, and JD.com also closed in positive territory. Tencent's trading volume for the day surpassed HK$18.5 billion.
Kuaishou recently announced plans to introduce external investors to its AI subsidiary, Kling, through a capital increase. The total funding round could reach approximately RMB 20.447 billion, implying a post-investment valuation of $18 billion.
Hang Seng Biotech Index Jumps Over 12%
The healthcare sector was another key area of strength, with innovative drug concept stocks leading the advance. Shares of InnoCare Pharma and Sino Biopharmaceutical both rose over 6%. Other notable gainers included CMS Pharmaceutical Holding, Kelun-Biotech, and Simcere Pharmaceutical Group.
As of July 6th, the Hang Seng Biotech Index has appreciated by 12.3% since the start of the second half of the year.
Zhipu AI Plummets Nearly 15%
In the AI concept space, Zhipu AI and Mininglamp Technology both fell more than 10%, while MINIMAX-W and Xunce fell over 3%.
Zhipu AI and MINIMAX-W are set to see their first post-IPO lock-up expiries on July 8th and July 9th, respectively. The two companies will have approximately 25.68 million and 16.5 million shares become tradable, with a combined potential market value exceeding HK$85 billion.
According to Grace Tam, Deputy Chief Investment Officer for Asia at BNP Paribas Wealth Management, the imminent expiry of lock-up periods for several Hong Kong-listed AI stocks may contribute to continued short-term market volatility. She noted that the AI industry's fundamentals remain solid. As long as major cloud service providers continue to increase capital expenditure, the outlook for hardware stocks remains optimistic. The recent adjustment in AI stocks may simply represent profit-taking and portfolio rotation by investors after significant gains.
PCB Concept Stocks Tumble Sharply
Semiconductor and Optical Communications Sectors Decline Collectively
Negative news emerged regarding Nvidia's Kyber architecture. Semiconductor industry research firm SemiAnalysis published a series of articles on social media this morning, suggesting potential delays for Nvidia's Kyber NVL144 rack architecture. This contributed to broad declines in PCB concept stocks, as well as the semiconductor and optical communications sectors.
Shares of Kingboard Laminates plunged 12.55%, and Kingboard Holdings fell 9.58%.
Optical communications concept stocks and semiconductor shares also declined. Yangtze Optical Fibre and Cable Joint Stock Limited Company dropped nearly 15%, while FS Innovation fell over 8%, and Cambridge Technology declined more than 6%. In the semiconductor space, TianShu Zhixin fell over 9%, and stocks like Aixin Zhiyuan dropped more than 5%.
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