Hong Kong's three major stock indices all declined in the morning session on July 24.
As of midday close, the Hang Seng Index fell 1.27% to 24,891.84 points, the Hang Seng Tech Index dropped 1.69%, and the Hang Seng China Enterprises Index lost 1.13%.
In sector movements, internet stocks broadly declined, with Alibaba Group Holding Ltd (NYSE: BABA, HK: 09988) tumbling over 5%, while Kuaishou Technology, Tencent Holdings Ltd, Bilibili Inc, and Baidu Inc each fell more than 2%.
The semiconductor sector showed some strength, with Montage Technology Co Ltd surging over 5%. This came after Intel Corp reported its second-quarter 2026 results, with revenue growing 25% year-over-year—its best quarterly performance in nearly 15 years. Its data center business revenue surged nearly 60%. Intel's third-quarter revenue guidance maintained high double-digit growth, exceeding market expectations. Intel's stock price jumped over 13% in after-hours trading on the US market, with the strong performance and optimistic outlook boosting global semiconductor market sentiment.
Gold stocks fell broadly, with Lingbao Gold Group Co Ltd dropping over 5%. The decline was driven by escalating US-Iran tensions in the Middle East, which pushed up oil prices and lifted US Treasury yields to their highest levels this year. The 10-year Treasury yield rose to around 4.7%, hitting levels not seen since January last year. Meanwhile, the 30-year Treasury yield briefly surged to 5.19% overnight, nearing its highest point since 2007. Market expectations suggest the Federal Reserve could raise interest rates as soon as next week, with Wall Street traders currently pricing in about a 30% probability of a 25-basis-point hike at the July 29 meeting, versus roughly 70% for a rate hold.
PCB concept stocks weakened, with KB Laminates Co Ltd plunging over 9%. Multiple medium-to-long-term negative factors continue to pressure valuations, with long-term overcapacity risk becoming a core market concern. Data analysis indicates that leading companies such as Avary Holding Shenzhen Co Ltd, WUS Printed Circuit (Kunshan) Co Ltd, and Shennan Circuits Co Ltd have poured tens of billions into high-end AI PCB production lines over the past two years, with new capacity set to be commissioned in concentrated batches from the second half of 2026 to 2028. The upstream copper foil industry faces a structural surplus, with China's total copper foil capacity at 1.8 million tons but actual annual demand at only 1.15 million tons, leaving capacity utilization below 65%. Low-end copper foil manufacturers are aggressively cutting prices to win orders, squeezing profit margins for midstream PCB companies from the top down.
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