Hong Kong's three major stock indices all moved higher during the morning session.
At the midday break, the Hang Seng Index was up 1.93% at 25,157.56 points, the Hang Seng Tech Index had gained 3.08%, and the Hang Seng China Enterprises Index advanced 2.26%.
Across the market, technology and internet stocks were mostly higher. Xiaomi Corporation and Kuaishou Technology both surged over 6%, while Meituan and Bilibili Inc. rose more than 5%. Lenovo Group was a notable decliner, falling over 3%.
Automotive stocks continued their recent rebound, with XPeng Inc. climbing more than 7%.
Gold-related shares were also stronger in early trading, with Zijin Mining Group Co., Ltd. gaining over 5%.
The semiconductor sector, however, faced selling pressure. Montage Technology Co., Ltd. saw a sharp decline, plunging more than 17%.
Automotive Sector's Rebound Continues
The positive momentum in auto stocks extended from recent sessions. XPeng Inc. led the gains with an increase exceeding 7%.
This movement follows the official release on July 15th of the "China Automotive Industry Vehicle Cost Calculation Rules" group standard by the China Association of Automobile Manufacturers. This marks China's first unified set of cost calculation rules for the entire vehicle sector.
The new standard addresses a history of inconsistent cost accounting methods and lack of benchmarking within the industry. It is viewed as a crucial step in curbing disorderly price competition and promoting high-quality development in the auto sector, representing a significant achievement in building industry consensus and self-regulatory rules.
Gold Stocks Gain Ground
Shares of gold companies opened higher, with Zijin Mining Group Co., Ltd. advancing more than 5%.
This strength comes after U.S. June CPI and PPI data came in below expectations, leading investors to significantly scale back bets on a Federal Reserve interest rate hike in July. International gold prices have maintained a volatile pattern.
DBS Bank noted that, supported by long-term factors such as central bank gold purchases, gold still has room to rise this year and could potentially reach $5,300 per ounce by year-end.
Semiconductor Shares Under Pressure
The semiconductor segment experienced a downturn, highlighted by a steep drop of over 17% in Montage Technology Co., Ltd.
Reports indicate that on July 15th, South Korean prosecutors conducted surprise raids on the South Korean offices of Montage Technology, Japan's Renesas Electronics, and U.S.-based Rambus as part of an investigation into alleged price-fixing of semiconductor components.
A representative from Montage Technology's board office responded today, stating the incident occurred yesterday and the company is currently gathering information. The spokesperson emphasized that the company has always operated in compliance with regulations, will cooperate fully with the investigation, and that its operations remain normal.
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