Hong Kong's three major stock indices all closed lower on September 7th. The Hang Seng Index finished the session down 0.93% to 25,413.12 points, while the Hang Seng Tech Index fell 0.92% and the Hang Seng Index (State-Owned Enterprises) dropped 1.46%.
Across the board, internet and technology stocks showed more losses than gains, with Baidu sliding over 4% and Xiaomi falling more than 3%. In contrast, printed circuit board (PCB) concept stocks rallied across the board, with Guanghe Technology surging more than 14%. Memory chip-related stocks also saw strong gains, with Montage Technology rising over 6%. Banking stocks, particularly domestic Chinese banks, mostly declined, with Bank of Qingdao dropping more than 3%. Coal stocks were broadly weak, led by Jinma Energy falling over 4%.
PCB concept stocks surged across the board, with Guanghe Technology gaining over 14%. The rally was driven by news that Kingboard Laminates has issued its seventh price increase notice to customers this year, raising FR-4 copper clad laminate prices by a unified 10% and PP prepreg prices by up to 20%. Since March, the company has maintained a near-monthly cadence of price hikes, with cumulative increases on FR-4 laminates exceeding 100% on a compound basis. The price leadership from the top-tier manufacturer has prompted rivals to follow suit. Panasonic announced it would raise laminate prices starting September 1st, with some products seeing increases of up to 30%. Nan Ya Plastics has also matched with increases ranging from 20% to 25%.
Memory chip stocks performed strongly, with Montage Technology climbing over 6%. According to fresh data from CFM Flash Market, the global DRAM market size reached $147.024 billion in the second quarter of 2026, up 55.9% quarter-on-quarter to an all-time high. Memory manufacturers actively responded to robust server market demand by expanding sales of high-value-added products such as server DRAM and HBM. While server and PC DRAM ASPs more than doubled quarter-on-quarter in Q1, growth moderated to the 40%-50% range in Q2. A favorable pricing environment continued to push DRAM prices upward, resulting in both volume and price gains, which drove a significant sequential revenue increase for manufacturers in the second quarter.
Shares of domestic Chinese banks mostly fell, with Bank of Qingdao down over 3%. This came as ICBC and Agricultural Bank of China both disclosed plans on September 6th to issue A-shares to specific investors, targeting combined fundraising of no more than 260 billion yuan. The Agricultural Bank of China aims to raise up to 160 billion yuan, while ICBC targets up to 100 billion yuan. The Ministry of Finance will lead the investment, with tobacco industry entities following, and all proceeds designated to supplement Core Tier 1 capital. This completes the capital injection for the two major state-owned banks that were absent from the first round in 2025. Analysts at Zhongtai Securities noted that this concludes the recapitalization of the six major banks, that private placements do not drain market liquidity, and that major shareholders subscribing above market prices provide a floor for valuations. With dividend yields of around 4% unchanged at the big banks, the dividend-investment logic remains intact.
Coal stocks were broadly weak, with Jinma Energy dropping over 4%. Despite thermal coal prices at Qinhuangdao rising to 962 yuan per tonne as of September 4th, up 81 yuan week-on-week, coal equities have not followed suit, creating a notable divergence. Institutional reviews suggest the market's concern is not coal prices themselves, but rather whether the increases are sustainable and whether they might trigger policy intervention. Steel mill profits remain squeezed by surging raw material costs, reducing their appetite for high-priced resources, while coal washing plants and trading segments have grown more cautious in procurement. The transmission chain of coal price increases is slowing, and confidence in further upside for coal prices is weakening.
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