The three major Hong Kong stock indices opened lower under pressure today, with the Hang Seng Index and the Hang Seng Tech Index once falling nearly 2% before paring losses in the afternoon session. At the close, the Hang Seng Index fell 0.65% or 156.29 points to 23,768.52, with a total turnover of HK$348.616 billion. The Hang Seng China Enterprises Index dropped 0.77% to 7,914.74, and the Hang Seng Tech Index declined 1.19% to 4,549.41. Some analysts suggest that for a fundamental reversal in the Hong Kong market, catalysts such as major tech firms' AI progress and consumption recovery are still needed, and the timing may not be right yet. Short-term technical rebounds have been suppressed by persistently high short-selling pressure, resulting in brief, unsustainable rallies. Looking ahead, attention in the near term may focus on sectors with high short interest and those showing marginal improvement in earnings expectations, such as media and innovative pharmaceuticals.
Blue-Chip Performance
China Life Insurance Company Limited (SEHK: 2628) led the gains among blue-chips. Its shares closed up 7.99% at HK$30.26, with a turnover of HK$2.905 billion, contributing 25.44 points to the Hang Seng Index. Analysts point out that the A-share market has warmed significantly since April, enhancing the certainty of subsequent investment returns recovery. The insurance sector's valuation remains at historically low levels, offering ample room for recovery, and the sector's value for left-side allocation is viewed positively.
Among other blue-chips, Contemporary Amperex Technology Co., Limited (SEHK: 3750) rose 4.73% to HK$742, contributing 10.63 index points. WuXi AppTec Co., Ltd. (SEHK: 2359) gained 3.19% to HK$132.8, contributing 3.05 points. Laopu Gold Co., Ltd. (SEHK: 6181) fell 5.15% to HK$434.8, dragging the index down by 2.34 points. BYD Electronic (International) Company Limited (SEHK: 285) dropped 4.87% to HK$22.66, weighing on the index by 1.4 points.
Key Sector Movements
Major technology stocks were broadly lower, with Alibaba down nearly 2% and Tencent falling over 1%. Brokerage and insurance stocks gained strength in the afternoon, with GF Securities Co., Ltd. (SEHK: 1776) surging nearly 10% and China Life rising nearly 8%. Leading large language model companies continued their advance. Semiconductor, optical communication, and PCB concept stocks related to AI hardware generally performed well. Conversely, automobile stocks were weak, while photovoltaic, mainland property, and gold stocks declined.
Brokerage and Insurance Stocks Gain Momentum
By the close, GF Securities (SEHK: 1776) was up 9.73% at HK$18.6. China International Capital Corporation Limited (SEHK: 3908) rose 7.85% to HK$21.72. China Life (SEHK: 2628) gained 7.99% to HK$30.26. Policy signals from a recent financial forum are seen as further enhancing capital market services. For the securities sector, sustained active trading in the A-share market provides solid support for improving industry fundamentals, and sector valuations are in a historically low range, offering attractive allocation value. For insurance, the A-share market's significant recovery since April has strengthened the outlook for investment return recovery. The sector's low valuation leaves substantial room for repair, supporting a positive view on its left-side allocation value.
Large Language Model Concept Remains Strong
At the close, MINIMAX-W (SEHK: 100) surged 23.89% to HK$616.5. Knowledge Atlas (SEHK: 2513) jumped 15.09% to HK$2,410. Following the release of its GLM-5.2 model, a social media exchange occurred regarding its potential to catch up with leading US models. Data shows that last week, the total global AI model call volume reached 46.7 trillion tokens. Among the top models, Chinese AI models saw a weekly call volume of 18.81 trillion tokens, marking a slight sequential increase of 2.12% and representing the fourth consecutive week of growth.
Memory Chip Theme Continues Rising
GigaDevice Semiconductor (Beijing) Inc. (SEHK: 3986) closed up 11.18% at HK$1,044. Montage Technology Co., Ltd. (SEHK: 6809) rose 4.44% to HK$466.2. South Korean chipmaker SK Hynix's market capitalization briefly surpassed that of Samsung Electronics earlier in the week. Additionally, last Thursday saw another collective surge among major US memory stocks, driving the Philadelphia Semiconductor Index to a record high. Micron Technology is set to report earnings this week, with several Wall Street firms having recently raised their price targets. Analysts note the emergence of long-term fixed-price agreements in the memory industry for the first time, which could smooth profit volatility, weaken cyclicality, and support a valuation shift from cyclical to growth-oriented.
Gold Stocks Decline Collectively
Lingbao Gold Company Limited (SEHK: 3330) fell 6.55% to HK$13.83. Shandong Gold Mining Co., Ltd. (SEHK: 1787) dropped 4.1% to HK$20.58. Chifeng Jilong Gold Mining Co., Ltd. (SEHK: 6693) declined 3.35% to HK$26.58. Rising energy prices due to Middle East tensions have reinforced market expectations for tighter monetary policy. Goldman Sachs has lowered its year-end 2026 gold price forecast by $500 per ounce, as the Federal Reserve is not expected to cut rates again this year. The bank's analysts revised their December gold target down to $4,900 per ounce, implying gold prices could still rise in the second half of the year, but by less than previously expected. The long-term narrative for gold, including global debt concerns, de-dollarization trends, strategic central bank purchases, and persistent geopolitical risks, remains intact despite headwinds from oil-driven rate hike expectations and capital flows into AI.
Notable Stock Movers
HQVT (SEHK: 1392) skyrocketed on its trading debut, closing up 270.83% at HK$26.7. The company is a dual leader in China's multispectral AI industry and multispectral AI model services. Its public offering was heavily oversubscribed by nearly 7,200 times, attracting over 300,000 applicants and total subscription funds of approximately HK$440 billion, ranking among the top five in Hong Kong main board history.
YOFC (SEHK: 6869) hit a record high, closing up 31.31% at HK$286. Japanese fiber optic giant Fujikura announced a 30% price increase for data center interconnect optical cables due to capacity expansion lagging demand growth, also significantly raising its full-year performance forecast, which boosted its stock. Another industry giant, Corning, is also facing delivery pressures and is actively planning capacity expansion, focusing on meeting fiber supply demands for AI chip leaders like Nvidia.
Jiaxin International Resources Co., Ltd. (SEHK: 3858) showed strong momentum, closing up 22.36% at HK$81.25. Tungsten has been explicitly listed among 36 national strategic minerals under new regulations effective from June 15th, with overall tightening on total mining volume, exports, and new mining rights. Global tungsten supply is rigidly tightening, supporting expectations for a sustained upward trend in tungsten prices. Additionally, Zhangyuan Tungsten recently raised its long-term contract purchase price for the second half of June 2026.
Shanghai Tyche Technologies Co., Ltd. (SEHK: 2631) climbed notably, closing up 10.08% at HK$108.7. In a recent podcast, Intel's CEO detailed the company's transformation path, shifting investment focus towards advanced packaging technologies like EMIB, glass substrates, and new materials such as gallium nitride (GaN), silicon carbide (SiC), indium phosphide (InP), and lab-grown diamonds after stabilizing the balance sheet and focusing product lines.
Lopal Tech. Co., Ltd. (SEHK: 2465) advanced throughout the session, closing up 9.64% at HK$13.53. According to reports, prices for lithium iron phosphate and lithium iron phosphate cathode materials, key raw materials for new energy and energy storage batteries, have been rising steadily this year, with market热度 remaining high. The current price for a roughly 400kg bag of lithium iron phosphate is over 25,000 yuan, double the price from a year ago, yet demand remains robust.
Comments