Hong Kong's three major stock indices displayed mixed performance in the morning session. By the midday break, the Hang Seng Index had declined by 1.19% to 22,752.96 points, while the Hang Seng Tech Index rose by 1.4%. The Hang Seng China Enterprises Index fell by 1.29%.
Market sectors showed varied movements. Technology stocks were mixed, with Lenovo Group shares gaining over 6% and Baidu shares up more than 4%. Conversely, Kuaishou shares fell over 2%, and Xiaomi shares dropped more than 1%. The optical communications sector saw a rebound, with shares of Haiguang Xinzheng surging over 15%. Semiconductor stocks performed strongly, with shares of Changguang Chenxin jumping more than 18%. Gold stocks faced pressure, with Zijin Mining International shares declining over 7%. Four new stocks debuted on the market today.
Optical Communications Sector Rebounds
The optical communications sector experienced a recovery. Haiguang Xinzheng shares surged over 15%. This follows the official opening of bidding for China Mobile's 2026-2027 G.654 optical cable product procurement project for high-speed rail use on June 26. The announced procurement scale reached 649,400 core kilometers, with a maximum bid limit of 206 million yuan. In related news, reports indicate Elon Musk has received approval from the U.S. Federal Trade Commission to acquire the startup Mesh Optical Technologies. This company focuses on R&D for data center optical communication technologies, with its core product being optical transceivers used for transmitting and receiving information between data centers using light signals.
Semiconductor Stocks Strengthen
Semiconductor stocks showed significant strength. Shares of Changguang Chenxin leapt over 18%. The global memory leaders Samsung and SK Hynix are reportedly planning chip capacity construction projects with a massive scale of up to 800 trillion Korean won. Each company is set to build two new dedicated chip factories, substantially increasing their global high-end chip capacity layout. Institutional research reports generally suggest that strong demand may accelerate the semiconductor materials cycle, with ample room for domestic substitution. The expansion of memory and wafer fabrication plants is expected to hasten the localization of semiconductor materials, and leading companies are poised to benefit from the dual drivers of import substitution and demand growth.
Gold Stocks Under Pressure
Gold stocks declined. Shares of Zijin Mining International fell more than 7%. Gold prices dropped sharply on June 30th, pressured by expectations of high interest rates and a strong U.S. dollar. After breaking below the $4,000 per ounce level, spot gold briefly fell below $3,950. Geopolitically, the prospects for U.S.-Iran talks remain unclear. Although U.S. President Trump insisted that a new round of talks would be held in Doha, Qatar on Tuesday following recent hostilities, Iran has denied this, stating there are no plans for any negotiations with the U.S. in the coming days. The market's current focus is on a scheduled speech by Fed official Waller on the evening of July 1st. Analysts suggest that if Waller maintains a relatively hawkish tone at the forum, it could further strengthen market expectations for Federal Reserve interest rate hikes.
New Listings Debut
Four new stocks began trading today. Jiangxi Biological shares fell over 9%, while True Health Medical-B shares surged over 197%. Sturgeon Technology shares gained over 44%, and Life Harmony shares rose more than 12%.
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