The Hang Seng Index fell by 1.19%, or 273 points, to 22,752 in the morning session, while the Hang Seng Tech Index gained 1.4%. Morning turnover in the Hong Kong market reached HK$139.9 billion. Shares in the optical communications concept bucked the broader market trend and moved higher. This followed news of Corning's glass bridge technology for CPO architecture and the inclusion of a major optical communications player in the FTSE Russell Index Series. Hai Guang Xin Zheng (HKEX: 01191) surged 15%, and Changfei Optical Fiber & Cable (HKEX: 06869) advanced 7.9%.
The robotics sector continued its strength. L.K. Technology Holdings Ltd (HKEX: 00558) rose 8%, Estun Automation Co., Ltd. (HKEX: 02715) jumped 10%, and Sanhua Intelligent Controls Co., Ltd. (HKEX: 02050) gained over 6%.
Several new listings debuted. Sturgeon Technology (HKEX: 06715), which has been the world's top seller of caviar for 11 consecutive years, saw its shares soar 45% by midday on its first day of trading. Life Harmonic (HKEX: 03952), ranked second among harmonic reducer providers for robots in China, climbed 12%. True Health Medical - B (HKEX: 02697), dubbed the "first puncture surgical robot stock," skyrocketed 197%. Conversely, Jiangxi Biotech (HKEX: 06915), the largest provider of human TAT globally and in China, fell 9.8%.
Yidu Tech Inc. (HKEX: 02158) surged over 13% after reporting a turnaround to profitability for the 2026 fiscal year and positive operating cash flow. ASMPT Limited (HKEX: 00522) rose more than 11% to a new record high, benefiting from South Korea's massive AI industry investment plan, which is expected to first benefit equipment manufacturers.
Dida Inc. (HKEX: 02559) surged over 90% after receiving a voluntary conditional cash offer from Tongcheng Travel Holdings Ltd at a premium exceeding 9%, which also included a proposal for a special dividend.
Tsugami Precision Engineering China Ltd. (HKEX: 01651) gained over 15% post-results, hitting a record high after reporting a full-year net profit increase of nearly 40%. Shenghong Technology (HKEX: 02476) rose over 8% as its Huizhou mSAP workshop meets production demands for 1.6T optical modules, with capacity planning focused on client needs.
Goldwind Science & Technology Co., Ltd. (HKEX: 02208) advanced over 9% amid positive updates on LandSpace's IPO progress and institutional optimism for the wind power sector in the second half of the year.
Airline stocks declined again, with analysts noting that Q2 earnings may see a significant drop due to oil price factors, and that the trajectory of the sector will continue to be determined by jet fuel and crude oil prices. China Eastern Airlines Corporation Limited (HKEX: 00670) fell 8%, and Air China Limited (HKEX: 00753) dropped 5%.
Budweiser Brewing Company APAC Ltd. (HKEX: 01876) fell over 4%, nearing its previous historical low, after reporting weaker-than-expected second-quarter performance with marketing costs pressuring gross margins.
Gold stocks were among the biggest decliners, pressured by expectations of high interest rates and a strong U.S. dollar, which pushed spot gold below $3,950 at one point. Zijin Gold International (HKEX: 02259) and Lingbao Gold Group Ltd. (HKEX: 03330) both fell 7%.
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