Hong Kong's Hang Seng Index fell 1.27%, dropping 318 points to 24,891, while the Hang Seng Tech Index declined by 1.69%. The Hong Kong market saw a midday turnover of 117.1 billion Hong Kong dollars.
Escalating conflict in the Middle East has pushed oil prices higher, fueling inflation concerns and reigniting expectations for a US interest rate hike this year. As bank net interest margins are expected to rise, Hong Kong banking stocks staged a contrarian rally this morning. Dah Sing Financial Holdings Limited (00440) rose over 6.95%; Dah Sing Banking Group Limited (02356) gained 5.56%; The Bank of East Asia Limited (00023) increased by 6.17%; and Bank of China (Hong Kong) Limited (02388) climbed more than 4%.
Following a wave of supportive policies for brain-computer interfaces, BrainAurora Medical Technology Limited (06681) surged over 11%. Xinjiang Xinxin Mining Industry Co., Ltd. (03833) rose another 9%, as higher prices for electrolytic nickel and cathode copper led to an expected net profit increase of nearly 2.6 times in the first half of the year.
China Modern Dairy Holdings Ltd (01117) added another 8%, projecting a pre-tax profit of no less than 43 million yuan in the first half, turning a profit from a year-ago loss. Zhipu AI (02513) climbed 7.6% after its GLM 5.2 model was credited with managing an AI incident, as the company continues to bolster its foundational capabilities. Wutong International (00613) rose over 6%, forecasting a shareholder-attributable profit of approximately 600 million Hong Kong dollars for the first half, a massive 555% year-on-year increase.
Montage Technology Co., Ltd. (06809) gained over 5% after announcing a plan to repurchase 300 million to 600 million yuan of its A-shares through centralized bidding. Laopu Gold Co., Ltd (06181) fell over 7%, as rising rate cut expectations weighed on gold prices and reduced the queues seen at many of its stores. Kingboard Laminates Holdings Limited (01888) dropped more than 9% amid frequent share selling by several major shareholders in recent times.
Chinese property stocks broadly declined, with listed developers reporting combined half-year losses of up to 50 billion yuan. As the seasonal lull sets in, market transactions remain relatively subdued. Guangzhou R&F Properties Co., Ltd. (02777) fell 4.39%, and Sunac China Holdings Limited (01918) dropped 3.57%.
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