The Hong Kong stock market experienced narrow fluctuations with a structural rally in the technology sector. By the close, the Hang Seng Index had risen 0.05% to 26,406.84 points, with a daily turnover of HKD 2.88491 trillion. The Hang Seng Tech Index gained 0.07% to 5,106.4 points. Among Hong Kong-listed ETFs, the Tracker Fund (02800) increased by 0.15% to HKD 26.54. The CSOP 2x Long SK Hynix ETF (07709) surged 23.6% to HKD 97. The CSOP 2x Long Hang Seng Tech ETF (07226) edged up 0.19% to HKD 4.15.
In sector performance, the memory chip segment led the market gains. The South Korean KOSPI index hit a new record high, with global memory chip companies' stock prices collectively soaring. SK Hynix and Samsung Electronics both reached new all-time highs. News of SK Hynix collaborating with
Bank of Communications International noted that the global memory chip industry is currently experiencing its strongest upcycle this century, with greater intensity than previous cycles, expected to last at least through the first quarter of 2027. Following prolonged industry consolidation, supply is highly concentrated. Coupled with structural demand growth from AI, this cycle's duration and strength significantly surpass past trends.
The semiconductor and chip sectors continued their high-growth trajectory. Reports that ByteDance plans to increase AI infrastructure spending by 25% catalyzed the market, reinforcing expectations for demand growth in the semiconductor supply chain. Related semiconductor and chip ETFs rose across the board. Among the largest products, the Huatai-PineBridge CSI China-Korea Semiconductor ETF (513310) hit the daily limit-up, closing at CNY 5.634. The Guotai Semiconductor Equipment ETF (159516) gained 6.9% to CNY 1.1. The E Fund Semiconductor Equipment ETF (159558) increased 6.88% to CNY 2.58. The Tianhong Chip ETF (159310) advanced 6.98% to CNY 2.834. The Eastmoney Chip ETF (159599) rose 6.87% to CNY 2.814. The E Fund Chip ETF (516350) climbed 6.7% to CNY 1.641.
Soochow Securities stated in a research report that the token economy revolution driven by intelligent agents and domestic substitution has opened a strategic opportunity window. Since 2026, the commercial value of the AI industry has undergone structural transformation. DeepSeek-V4's first use of domestic computing power for training marks AI's entry into a strategic opportunity period for domestic innovation and represents a significant inflection point for domestic computing power shifting from policy-driven to industry-proven.
Guoyuan Securities indicated that Asian semiconductor sector earnings exceeding expectations have become a primary market driver. Japan's market rebounded notably, driven by the AI semiconductor trend, while South Korea saw a clear improvement in risk appetite due to strong semiconductor earnings, stable central bank policy, and easing geopolitical risks. The semiconductor industry continues to gain favor from institutional investors.
From an institutional perspective, the fund manager of the Huatai-PineBridge CSI China-Korea Semiconductor ETF analyzed that at the industry level, the rigidity of AI computing demand and the upward trend in memory chip prices provide solid support for the sector. The greatest uncertainty still stems from geopolitics. Whether the Strait of Hormuz resumes navigation and whether Middle East tensions escalate again will directly determine the global inflation path and risk asset preferences, with a particularly significant impact on export-oriented economies like South Korea's stock market.
CSOP Asset Management believes that the soaring gains in South Korean tech stocks are not a valuation bubble but genuine profit growth. The total returns of Samsung Electronics and SK Hynix year-to-date are entirely driven by earnings growth. The seemingly sharp gains have not yet fully reflected the profit growth of South Korea's tech leaders, presenting a situation of "cheaper despite rising prices."
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