Hong Kong's three major stock indexes all moved lower in morning trading on September 7, with the market showing broad weakness across multiple sectors.
At the midday close, the Hang Seng Index fell 0.97% to 25,402.73 points, the Hang Seng Tech Index declined 1%, and the Hang Seng China Enterprises Index dropped 1.51%.
Internet and tech stocks were mostly in the red, with Baidu Inc (NASDAQ: BIDU) plunging more than 5% and Xiaomi Corp (HKG: 1810) losing over 3%. On the flip side, PCB (printed circuit board) concept stocks surged across the board, with Guanghe Technology (SZA: 301138) jumping over 13%.
Semiconductor concept stocks also rallied strongly, with Ing Dan Innovation climbing more than 8%. Coal stocks weakened collectively, with Mongolia Energy Corp Ltd (HKG: 0276) dropping over 4%. Oil stocks fell across the board, with PetroChina Co Ltd (HKG: 0857) slipping more than 2%.
In terms of catalysts, Kingboard Laminates Holdings Ltd (HKG: 1888) recently issued its seventh price increase notice this year to customers, raising FR-4 copper clad laminate prices by 10% and PP prepreg prices by up to 20%. Since March, the company has maintained a near-monthly price hike pace, with cumulative increases on FR-4 copper clad laminate exceeding 100% on a compound basis.
The leader's price hikes quickly drew industry followers. Panasonic Corp (TYO: 6752) announced it would raise copper clad laminate prices starting September 1, with some products seeing increases of up to 30%. Nan Ya Plastics Corp (TPE: 1303) followed suit with increases ranging from 20% to 25%.
Semiconductor concept stocks strengthened collectively, with Ing Dan Innovation rising more than 8%. The company disclosed on August 31 its interim results for the six months ending June 30, 2026, reporting revenue of 13.249 billion yuan, up 98.4% year-on-year; operating profit of 517 million yuan, up 87.7%; net profit after tax of 373 million yuan, up 96.3%; and profit attributable to equity shareholders of 279 million yuan, up 111.1%. The company attributed the strong first-half performance to persistently robust chip demand from artificial intelligence data centers, storage, and robotics sectors.
Coal stocks declined across the board, with Mongolia Energy shedding over 4%. Data showed that Qinhuangdao thermal coal prices had risen to 962 yuan per tonne on September 4, up 81 yuan week-on-week. Yet coal stocks failed to follow the price surge, creating a notable divergence. Institutional reviews suggest the market's concern is not coal prices themselves but whether the rally is sustainable and whether it might trigger policy intervention.
Steel mill profits continue to face pressure from rising raw material costs, reducing their appetite for high-priced resources. Meanwhile, coal washing plants and trading intermediaries have turned more cautious in their procurement. The transmission chain of coal price increases is slowing, and market confidence in further upward movement is wavering.
Oil stocks fell collectively, with PetroChina dropping over 2%. The earlier rally in oil stocks was primarily driven by supply disruption risks from escalating Middle East tensions. However, as the situation enters a phase of prolonged stalemate, the market has begun repricing the risk premium. More critically, US Treasury Secretary Bessent publicly stated that once the Iran conflict concludes, the crude market would face severe oversupply, with oil prices potentially falling to $40-$50 per barrel, directly dampening long-term price expectations.
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