The Hong Kong stock market's three major indices closed lower collectively.
The Hang Seng Index finished down 0.64% at 24,407.96 points, while the Hang Seng Tech Index dropped 0.94%. The H-share index saw a more modest decline of 0.07%.
Technology and internet stocks showed a mixed performance. Lenovo Group Ltd (HKG: 0992) shares fell more than 9%, and Xiaomi Corp (HKG: 1810) dropped over 3%. Alibaba Group Holding Ltd (HKG: 9988) declined more than 2%. On the positive side, NetEase Inc (HKG: 9999) and Kuaishou Technology (HKG: 1024) both gained over 3%, while Tencent Holdings Ltd (HKG: 0700), Meituan (HKG: 3690), and Bilibili Inc (HKG: 9626) rose more than 2%.
Innovative Drug Sector Gains in Afternoon Session
Stocks in the innovative drug concept gained strength during the afternoon trading session, with Zai Lab Ltd (HKG: 9688) surging more than 5%. This movement followed the National Medical Products Administration's (NMPA) release of drug approval information on June 9th, which included nine newly approved drugs spanning three major therapeutic areas, including oncology.
Among the approvals, Zai Lab's imported drug, Vepdegestrant injection, became the first DLL3/CD3 bispecific antibody approved in China. It is indicated for treating extensive-stage small cell lung cancer in patients who have received at least one prior line of therapy, addressing a significant unmet need for second-line and later treatments. This drug received approvals from the U.S. FDA and the EU's EMA in 2025, making China the third major market to grant approval. Currently, only two such products are approved globally, with over ten domestic Chinese companies having related candidates in clinical research. The global market for such therapies is projected to surpass $6 billion by 2030, with China expected to account for approximately 25% of that market.
Additionally, new indications for Mabwell's Orelabrutinib β injection and Fuhong Hanlin's Serplulimab injection were also approved. Progress was also noted for Takeda's coagulation factor VIII and Novo Nordisk's semaglutide.
Power Equipment Stocks Lead Declines
Power equipment stocks were among the biggest decliners, with Dongfang Electric Corporation Ltd (HKG: 1072) shares dropping more than 7%. The sector is facing headwinds from the global expansion of AI computing infrastructure, which is intensifying grid bottlenecks, and the rising power supply standards for Tier A data centers. These factors are driving a new cycle of demand expansion for diesel generator sets, as clients in some North American regions primarily use them as their main power source. Meanwhile, persistently high international oil and gas prices may substantially suppress demand for gas turbine units.
Optical Communication Sector Sees Pullback
The optical communication sector experienced a correction, with Yangtze Optical Fibre and Cable Joint Stock Ltd (HKG: 6869) shares tumbling over 9%. This decline was triggered by a SemiAnalysis report suggesting that the mass production of 800VDC and Co-Packaged Optics (CPO) technologies would be delayed until after 2028, which led to significant losses for U.S. optical communication stocks.
Concurrently, an interview cited an Nvidia executive stating that CPO volume shipments would ramp up in the second half of the year. This sparked debate among investors, with many arguing that the delay does not negate the underlying demand for AI-related infrastructure. Some viewpoints suggest that the CPO delay could actually benefit the markets for pluggable optical modules and Near-Packaged Optics (NPO) technologies.
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