To The Moon

The Hang Seng Index fell 0.49%, dropping 126 points to 25,882, while the Hang Seng Tech Index slipped 0.19%. Total turnover for the morning session reached 135.2 billion Hong Kong dollars.

The optical communication concept stocks led the gains. The widening supply gap in InP has prompted institutions to favor the long-term investment value of oversold hard tech and optical communication sectors. ZJ INNOLIGHT (03308) surged 16.7%, CIG (06166) jumped 16%, and CREALIGHTS (01191) soared 27%.

CRO concept stocks also performed well, as several multinational corporations and CXOs have recently released positive interim profit forecasts and raised their full-year guidance. WUXI APPTEC (02359) rose 11% to lead the blue-chip stocks, GENSCRIPT BIO (01548) gained 11%, and ASYMCHEM (06821) increased by 8%.

The computing power boom is driving higher volumes and prices in the PCB sector. CFMEE (09630) climbed over 18%, while HANS CNC (03200) rose more than 10%. GBA AI COMP (01396) advanced over 11%, as the computing power leasing market enters a phase of earnings realization, with company delivery accelerating across the board.

KINGSOFT CLOUD (03896) gained 9%, supported by strong earnings reports from major tech firms that boosted the cloud computing sector, with AI public cloud services expected to significantly enhance the company's second-quarter performance. TIME INTERCON (01729) rose over 8% after fully consolidating Leoni's cable business, which is likely to substantially boost its earnings.

DEEPEXI TECH (01384) climbed more than 6% before the midday break, as its AI revenue more than tripled year-over-year in the first half, leading the company to a quarterly profit turnaround. XUNCE (03317) surged over 14% after receiving an initial "overweight" rating from Northeast Securities, with first-half revenue soaring 389% and achieving profitability for the first time.

BLACK SESAME (02533) rose more than 6%, driven by breakthroughs in its smart driving and robotics businesses, with first-half revenue expected to grow over 80%. CGN MINING (01164) gained over 6%, as China approved eight new nuclear power units, and SPUT has increased its physical uranium holdings for two consecutive weeks.

Auto stocks generally weakened. Sales performance diverged further among automakers in July, with technology remaining a key battleground in the market. XPENG-W (09868) fell 4%, and LI AUTO-W (02015) dropped 3.6%.

CHINA CINDA (01359) declined 5.5% after issuing a profit warning, forecasting a 60% to 70% drop in net profit attributable to shareholders for the first half of the year.