Hong Kong's three major stock indices closed lower on Thursday, with the benchmark Hang Seng Index falling 0.38% to 25,317.18 points. The Hang Seng Tech Index dropped 1.61%, while the Hang Seng China Enterprises Index also declined by 0.38%. Market sentiment was cautious as technology names saw more losses than gains, with Lenovo tumbling over 6%, while Kuaishou, Xiaomi, and Baidu each shed more than 2%.
Oil-related stocks continued their upward momentum, with China Oilfield Services surging over 6% as geopolitical factors propelled crude prices higher. Brent crude broke through the $99 per barrel mark, climbing 2.09% intraday. This rally followed reports from Saudi Arabia's energy ministry that multiple energy facilities and public utilities had been attacked by Yemen's Houthi rebels, causing fires at several locations and temporarily disrupting operations at some installations. The ministry stated it was working to ensure facility safety, personnel security, and continuity of operations.
Innovative drug development stocks largely advanced, with GenScript Biotech jumping more than 11%. The surge came after the company announced plans to spin off its subsidiary Probio Technology Limited for a separate listing on the Main Board of the Hong Kong Stock Exchange. According to the announcement, GenScript would retain controlling interest in Probio Technology upon completion of the spin-off, with the subsidiary's operational and financial results continuing to be consolidated into GenScript's financial statements.
Non-ferrous metals stocks were active, with Jiangxi Copper rising over 4%. This followed three-month copper futures on the London Metal Exchange touching $14,533 per tonne intraday on Wednesday, surpassing the historical record set in January this year. Copper prices have accumulated gains of approximately 17% year-to-date. Market participants continue to bet on potential new US tariffs on refined copper imports, prompting traders to ship large volumes of copper to the United States for arbitrage opportunities, which has tightened physical supply in other global regions, particularly within the LME system. Additionally, electrification trends including AI data centers, grid upgrades, and new energy vehicles continue to drive copper consumption, with institutions estimating that demand for high-end copper foil specifically for AI servers will grow approximately 260% year-on-year in 2026. Investment banks including UBS project the copper market deficit will continue widening, with the price center expected to trend steadily higher.
Longsys made its debut on the Hong Kong exchange today, immediately breaking its issue price with a decline of over 1%. The company's global offering comprised 26,077,800 H-shares, including 2,607,800 shares for the Hong Kong public offering and 23,470,000 shares for international placement, with an over-allotment option in place. Each lot consists of 50 shares with an entry fee of approximately HK$12,151.32, and based on the maximum offer price of HK$240.60, the net proceeds are estimated at around HK$6.02 billion. The listing comes at a peak in the storage industry cycle. According to the prospectus, Longsys generated revenue of RMB 24.088 billion in the first half of 2026, representing year-on-year growth of 136.3%, while gross margin expanded from 11.0% to 58.2% compared to the same period last year. Net profit for the period reached RMB 10.718 billion, compared to just RMB 41 million in the prior-year period. However, the H-share offer price represents a discount of approximately 40% to the company's A-share closing price, and coupled with insider director share reductions during the year, market participants have expressed some reservations about this issuance.
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