Hong Kong's three major stock indexes all finished higher in trading on August 3. The Hang Seng Index closed up 0.48% at 26,009.40, while the Hang Seng Tech Index gained 0.96% and the State-owned Enterprises Index rose 0.46%.
Internet and technology stocks saw broad gains, with Alibaba surging more than 7%, and Lenovo, Tencent, Baidu, and Kuaishou each advancing over 3%. Solar energy stocks also performed strongly, with Xinyi Solar jumping more than 13%. AI application stocks were active, with MINIMAX climbing over 7%. On the downside, memory chip concept stocks declined, with Southern 2x Long SK Hynix falling more than 16%.
In the solar sector, Xinyi Solar surged over 13%. On July 31, the State Administration for Market Regulation held a solar industry pricing compliance guidance meeting in Yancheng, Jiangsu, to implement central government policies aimed at curbing "involutionary" competition and encouraging a shift from "price competition" to "quality competition." A recent JPMorgan research report indicated that China's solar sector has been in a sustained correction since the start of the year, with valuations for some stocks at historical lows. Given expectations of a seasonal demand recovery in the second half and active production cuts and capacity controls, the supply-demand outlook for solar glass is expected to improve, leading the firm to adopt a "selectively optimistic" stance on the sector.
AI application stocks showed strength, with MINIMAX rising more than 7%. Recently, OpenRouter, a global multi-model aggregation platform, released its latest weekly ranking of AI model call volumes. The top five products were all developed by Chinese companies. Ranking first was Xiaomi MiMo-V2.5, with weekly call volumes reaching 10.5 trillion tokens, up 12% week-on-week. Tencent Hunyuan 3, which was officially open-sourced on July 6, came in third, with a weekly increase of over 999%, making it the fastest-growing model on the list.
Memory chip concept stocks declined, with Southern 2x Long SK Hynix dropping more than 16%. South Korea's KOSPI index weakened significantly today, closing at 6,257.45, down 5.12% or 338 points. Morgan Stanley upgraded its rating on the Korean stock market to "overweight," setting a target of 9,000 points, implying a 36% upside from current levels. The KOSPI's forward price-to-earnings ratio has fallen to 5.7 times, a historic low. Hedge fund deleveraging is approximately 75% complete, and leveraged ETF positions have shrunk by 70% from their peak, significantly improving the market's structural composition. Capital management trends, HBM4 pricing, and the iPhone 18 release cycle are identified as three key catalysts for the next phase of the Korean stock market's rally.
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