To The Moon

Hong Kong's three major stock indices were collectively lower in the morning session. At the midday close, the Hang Seng Index was down 1.18% at 24,668.39 points, the Hang Seng Tech Index had fallen 2.4%, and the Hang Seng China Enterprises Index declined by 1.01%.

In terms of sector performance, technology and internet stocks were broadly lower. Baidu Inc shares dropped over 7%, Meituan fell more than 4%, and Kuaishou Technology declined over 3%. Coal stocks bucked the downward trend, with Yankuang Energy Group Co Ltd rising more than 2%. Gold stocks saw widespread declines, with Zijin Mining Group Co Ltd falling over 7%. The semiconductor sector continued its adjustment, with Core Intelligent Holdings down over 7%.

Coal Stocks Defy Market Trend

Coal stocks moved against the broader market decline, with Yankuang Energy Group Co Ltd gaining over 2%. Following a mining accident in Shanxi, safety supervision has been significantly intensified. As of June 5th, 135 coal mines in Shanxi had suspended operations, with only 61 resuming production, indicating a slow actual restart pace. Nationwide safety inspections are expected to expand, and combined with the influence of the June "Safety Production Month," supply is anticipated to tighten further. Additionally, Indonesia recently released details of its bulk commodity export control plan, establishing state-owned enterprises to centrally manage coal exports. Analysts at CITIC Securities point out that supply-side disruptions have resurfaced (mine accidents + Indonesia's new export policy). With multiple favorable factors converging during the peak season, the probability of coal prices exceeding expectations has increased, and the coal sector is entering a new phase of market activity.

Gold Stocks Experience Broad Declines

Gold stocks were broadly lower, with Zijin Mining Group Co Ltd falling more than 7%. In early trading on June 8th, spot gold prices experienced a sharp drop, briefly falling below $4,300 per ounce. Data released by the U.S. Bureau of Labor Statistics showed that non-farm payrolls increased by 172,000 in May, nearly double the market expectation of 88,000 and significantly higher than April's figure of 115,000. Following the data release, the yield on the 10-year U.S. Treasury note surged to 4.55% last Friday, reaching a two-week high. It is also noteworthy that, on the geopolitical front, Iran launched an attack on Israel for the first time in approximately two months since a ceasefire with the United States.

Semiconductor Sector Continues Correction

The semiconductor sector continued its adjustment, with Core Intelligent Holdings down over 7%. Ray Dalio, founder of Bridgewater Associates, believes the current artificial intelligence sector is showing signs of a bubble, which will eventually burst. He analyzed that every major phase of technological transformation tends to foster market bubbles, and industry participants commonly face difficult investment decisions, where both aggressive positioning and conservative waiting carry respective risks. Currently, the U.S. stock chip sector continues to strengthen, driven by demand from AI data centers, contributing to broader market gains. Discussions about whether the market is overheating continue to intensify.