Hong Kong Stocks Midday Review | Hang Seng Index Slips 0.71% in Morning Session as Mainland Banking Stocks Buck the Downtrend

Stock News08-31 12:07

Hong Kong stocks opened the session with a downward bias, with the benchmark Hang Seng Index losing 182 points, or 0.71%, to hover around the 25,402-point level by midday. The tech-heavy Hang Seng Tech Index also gave back 1.03%, while total turnover for the morning session reached HK$138.1 billion. Notably, mainland banking counters emerged as the outperformers, climbing against the broader market weakness.

The strength in the banking sector comes as major state-owned lenders reported a comprehensive recovery in interim earnings, with net interest margins showing early signs of stabilization. PSBC (01658) led the charge with a 7.37% surge, while BANK OF CHINA (03988) advanced more than 5%. Elsewhere, UNISOUND (09678) skyrocketed over 22% after revealing that its second-quarter token revenue grew more than fivefold quarter-over-quarter, alongside business gross margins exceeding 60%.

TOPNC (07688) climbed 7.6% following interim revenue of RMB 166 million, with sales of its compact five-axis machine tools more than doubling year-on-year. BIREN TECH (06082) added 10% in post-results trading as first-half revenue skyrocketed nearly 2,000%, supported by the company having secured sufficient key supply chain capacity. DEEPEXI TECH (01384) rose more than 5% after its first-half AI business revenue jumped 209.2%, with order books validating the sustainability of its earnings growth. TIME INTERCON (01729) also advanced over 5%, driven by a 1.64-fold increase in interim net profit attributable to shareholders, underpinned by robust growth in its server and wire harness component businesses.

HQVT (01392) climbed nearly 15% as the commercialization of its multispectral AI solutions accelerates, with the segment's first-half revenue surging almost fourfold year-on-year. DUIBA (01753) continued its extraordinary rally, adding more than 29% and extending its six-day cumulative gain to over 2.5 times, fueled by AI-powered short drama monetization that significantly boosted total interim revenue. COSCO SHIP PORT (01199) rose 5.79% after reporting a 28.5% year-on-year increase in interim profit attributable to shareholders, reaching US$234 million.

On the downside, FUFENG GROUP (00546) tumbled 6.8% after interim net profit plunged 80% year-on-year, dragged down by falling prices of its major products and foreign exchange losses. LAOPU GOLD (06181) slipped 6.2% in morning trading after Morgan Stanley cut its net profit forecasts for this year and next, projecting only 3% earnings growth in the second half. MNSO (09896) dropped more than 11%, as adjusted net profit declined 10.5% year-on-year in the second quarter due to exchange translation impacts, with the company also facing a period of adjustment in overseas markets.

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