Hong Kong's stock market exhibited strong positive sentiment today, with the Hang Seng Index gapping up to close 1.28% higher. The market saw broad-based gains across most sectors.
On the data front, the US Labor Department's June non-farm payrolls report was a major catalyst. The addition of only 57,000 jobs fell far short of the market's 113,000 expectation, indicating a significant cooling in the labor market. Weaker economic data is generally positive for equities, as it reduces the likelihood of a July rate hike and has even sparked speculation about potential rate cuts later this year. The US dollar and Treasury yields fell in tandem, creating a favorable environment for gold. Spot gold prices surged, breaking through the $4,100 per ounce level. This propelled gold stocks sharply higher, with Chifeng Gold Co Ltd (06693), Wanguo International Mining Group Co Ltd (03939), and Lingbao Gold Group Co Ltd (03330) all soaring over 16%. Zijin Mining Group International Co Ltd (02259) also jumped more than 14%. The rally in gold stocks follows a period of significant weakness, making the rebound logical. Commodities related to AI also warrant attention, such as China Molybdenum Co Ltd (03993), which gained over 7% today.
A report from semiconductor research firm SemiAnalysis challenged the market's interpretation of Meta's strategy. The firm argued that Meta's data center and computing power procurement will accelerate, not slow down, with capital expenditures in 2027 reaching "staggeringly high" levels. South Korea demonstrated proactive market support with a plan to use 5 trillion won in semiconductor tax surpluses to purchase approximately 10,000 high-end Nvidia Vera Rubin GPUs. This news boosted shares of Samsung and SK Hynix. ASMPT Limited (00522), a key beneficiary, rebounded over 5%, and Biren Technology (06082) rose more than 6%. While the broader tech sector saw a rebound, its strength was somewhat muted as other sectors aggressively attracted capital, causing a significant diversion of funds. However, AI application stocks also participated in the rebound. Paradigm Intelligence Limited (06682), driven by its API + Agentic AI + AI Platform model and drawing comparisons to US-listed peers, surged nearly 12%. In AI healthcare, Yidu Tech Inc (02158) climbed over 6%.
The strongest sector today was undoubtedly robotics, fueled by several catalysts. One was the news that Unitree Robotics has filed for an IPO on the STAR Market. Additionally, a report released in Shanghai on July 2 projected China's embodied AI market to grow from approximately 213.3 billion yuan in 2018 to an estimated 1.09 trillion yuan by 2026, representing a compound annual growth rate of 22-23%. Estun Automation Co Ltd (02715), a July top pick, announced it is planning for its wholly-owned subsidiary to acquire the remaining equity in its associated company, Nanjing Estun Coodoo Technology Co., Ltd., in a cash transaction. Post-acquisition, Estun will hold 100% ownership. The target company's main products are collaborative robots and embodied intelligent robots with payloads from 3kg to 35kg, along with their core components. This acquisition is expected to create synergies, allowing Estun to help Coodoo reduce costs and providing a ready-made commercialization channel, while Coodoo's torque sensor and modular joint technology can benefit Estun's traditional product lines. The stock surged over 30% today.
Overseas commercialization is also accelerating. Figure AI's humanoid robots have entered a BMW assembly plant for long-term parts sorting tasks, validating industrial application scenarios. Further catalysts for the sector include Tesla's anticipated launch of Optimus V3 around mid-2026 and the start of production for the Optimus robot in July-August 2026. Key Tesla supply chain components mentioned yesterday, Sanhua Intelligent Controls Co Ltd (02050) and Minth Group Ltd (00425), rose over 10% and 6%, respectively.
Beyond the leader Estun, other domestic robotics components performed strongly. Shenzhen Zhaowei Machinery & Electronics Co Ltd (02692), focused on dexterous hands, skyrocketed over 26%. Johnson Electric Holdings Limited (00179), boosted by its robot motors and powder metallurgy applications, gained nearly 15%. Humanoid robot leader UBTECH Robotics Corp Ltd (09880) launched its U1 series of companion robots priced from 119,800 to 990,000 yuan, with pre-orders exceeding 13,000 units. Its stock jumped over 17%.
Various specialized robotics segments also saw significant gains. Home robot company Woan Robotics Limited (06600) announced its Chairman, CEO, and largest single shareholder extended his share lock-up period and the company continued share buybacks, leading to an over 18% rise. Surgical robot company MicroPort MedBot (B) (02252) reported its Toumai laparoscopic robot had secured over 300 global commercial orders and was ranked among the top two globally in brand influence, surging over 16%. Warehouse robot leader Beijing Geekplus Technology Co Ltd (02590), with a 23% global market share in warehouse fulfillment, rose over 15%. Dobot Technology Co Ltd (02432), a global leader in collaborative robots, climbed over 14%.
The pharmaceutical sector continued to attract capital inflows, with Hong Kong Stock Connect-listed innovative drug ETFs rising around 2%. CRO/CDMO company Asymchem Laboratories Tianjin Co Ltd (06821) rebounded strongly, gaining over 11%. Other popular constituents in these ETFs, such as 3SBio Inc (01530), CSPC Pharmaceutical Group Limited (01093), and Akeso Inc (09926), all rose over 7%. Hansoh Pharmaceutical Group Company Limited (03692) and Kelun-Biotech (06990), mentioned in yesterday's stock picks, both gained over 6%. Investors are advised to focus on stocks within the Hong Kong Stock Connect innovative drug ETF universe, as this represents incremental capital flow.
In green energy, Xinjiang Goldwind Science & Technology Co Ltd (02208) rose over 11% after its joint-venture Baldon Wind and Storage Project in Australia received crucial grid connection approvals from AEMO and Transgrid, paving the way for financing and construction. The first phase involves 360MW of wind power and 132MWh of storage.
Sector Spotlight: Charging Module Price Hikes
Four charging module manufacturers have circulated price increase notices among charging station investors, citing significant cost increases for components like PCBs, silicon carbide chips, resistors, capacitors, relays, and copper/silver metals since the first half of 2026. To ensure stable supply, they plan to raise prices for all product lines by 15% starting July 1, 2026. Two of the four companies have confirmed the notices and the price hikes. This development is seen as positive for related Hong Kong-listed stocks such as Zhuzhou CRRC Times Electric Co Ltd (03898), Innoscience (Zhuhai) Technology Co Ltd (02577), Nova Semiconductor (Suzhou) Co Ltd (02676), and Zhida Technology Holdings Limited (02650).
Featured Stock: Midea Group Co Ltd (00300)
Recent extreme heatwaves in Europe, with temperatures exceeding 35°C in Spain, France, and Germany, have triggered a surge in demand for air conditioners. Midea's PortaSplit portable air conditioner has sold out in several offline and online channels in Europe, with resale prices reaching 1,999 euros, 1.5 times the official price. The company has also repurchased approximately 5.476 billion yuan worth of its A-shares.
Analysis: The increasing frequency of extreme heat in Europe is driving strong overseas orders for Midea's air conditioners. PortaSplit sales this year have already doubled compared to the whole of last year, with shipments exceeding 200,000 units. Midea has successfully transitioned from a home appliance maker to a technology group, focusing on AI, robotics, and new energy. Its ToB business is a significant growth driver, with revenue expected to reach 122.8 billion yuan in 2025, growing faster and with higher margins than its ToC segment. The company boasts a global footprint with 29 R&D centers and 43 manufacturing bases across 50 countries. Its vertical integration, with in-house production of key components like compressors and motors, provides a 10-15% cost advantage and shorter delivery cycles. Midea operates six "Lighthouse" smart factories. Its robotics business, through KUKA and in-house humanoid robots, holds over 2 billion yuan in orders, with concentrated deliveries expected in the second half of 2026. Its new energy vehicle components business also has orders exceeding 5 billion yuan, supplying major automakers. The company is deepening its AI and premiumization strategy, targeting a 40% penetration rate for AI-enabled appliances by 2026. Its global expansion is accelerating, with strong growth in Southeast Asia, North America, and the Middle East. A recent partnership with Alibaba focuses on developing full-home smart solutions. Midea maintains a strong shareholder return policy, aiming to return 100% of net profit via dividends and buybacks, with an expected dividend yield of approximately 5% for 2026. The combination of robust earnings growth and an active capital return policy is significantly boosting investor confidence.
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