To The Moon

The Hong Kong market's three major indices closed with mixed results.

At the close, the Hang Seng Index was down 0.74% at 24,312.16, the Hang Seng Tech Index rose 0.22%, and the Hang Seng China Enterprises Index fell 1.17%.

In sector performance, technology and internet stocks were mixed.

Lenovo Group Ltd (HKG: 0992) shares gained over 2%, while Meituan (HKG: 3690) shares fell more than 1%. Kuaishou Technology (HKG: 1024) shares surged over 7%, and Baidu, Inc. (HKG: 9888) shares rose more than 1%.

Chip stocks showed strength, with GigaDevice Semiconductor (Beijing) Inc (HKG: 9869) soaring over 14%.

Automotive stocks were among the worst performers, with Voyah Automobile Technology Co., Ltd. (HKG: 9866) dropping more than 6%.

Domestic property stocks weakened, with Agile Group Holdings Ltd (HKG: 3383) declining over 4%.

SENASIC (HKG: 9999) made its trading debut today, surging over 127% on its first day.

Chip Sector Gains Momentum

Semiconductor stocks advanced, led by a more than 14% jump in GigaDevice Semiconductor.

A research report from Morgan Stanley on the 16th noted that driven by sustained demand from AI data centers, the supply-demand tightness across the entire hard drive and memory industry chain is exceeding expectations.

The shortage situation may persist until at least 2028, breaking previous expectations of easing by 2027, with capital inflows boosting the sector.

From a demand perspective, the DRAM usage per AI server is 8-10 times that of a standard server, with NAND and enterprise-grade hard drive usage exceeding threefold.

The scaling of large model inference and AI agents is expected to drive explosive growth in memory demand.

Automotive Stocks Under Pressure

Automobile stocks were notably lower, with Voyah Automobile falling more than 6%.

On June 16th, an industry report indicated that with the implementation of more proactive and effective macroeconomic policies in 2026, along with increased counter-cyclical and cross-cycle adjustments, continued expansion of domestic demand, and supply optimization, overall market demand is expected to be stable with an upward trend, achieving a good start.

From January to May 2026, automobile production reached 12.28 million units, a year-on-year decrease of 5%.

New energy vehicle production was 5.78 million units, a year-on-year increase of 1%, with a penetration rate of 47%.

Production of traditional fuel vehicles was 6.5 million units, down 9% year-on-year.

In May 2026 alone, automobile production was 2.58 million units, down 3% year-on-year.

New energy vehicle production was 1.49 million units, a significant year-on-year increase of 18%, with a penetration rate of 58%.

Fuel vehicle production was 1.09 million units, down 22% year-on-year.

Property Stocks Weaken

Domestic real estate stocks softened, with Agile Group dropping over 4%.

National Bureau of Statistics data for the national real estate market from January to May 2026 shows that the floor space of housing under construction by real estate development enterprises was 5.48775 billion square meters, a year-on-year decrease of 12.3%.

Of this, residential building floor space under construction was 3.8083 billion square meters, down 12.6%.

The floor space of newly started housing was 179.29 million square meters, a decline of 22.6%, with newly started residential floor space at 130.84 million square meters, down 23.4%.

The floor space of completed housing was 140.87 million square meters, a decrease of 23.4%, with completed residential floor space at 99.99 million square meters, down 25.0%.

From January to May, the sales area of newly built commercial housing was 313.2 million square meters, down 10.8% year-on-year, with residential sales area falling 12.1%.

The sales value of newly built commercial housing was 2.9366 trillion yuan, down 13.5%, with residential sales value down 14.1%.

At the end of May, the area of commercial housing for sale was 771.82 million square meters, a slight year-on-year decrease of 0.4%, with the area for sale for under three years at 571.52 million square meters, down 2.8%.

New Listing SENASIC Soars on Debut

SENASIC listed today, skyrocketing over 127% on its first trading day.

During its public offering, SENASIC's shares were oversubscribed by approximately 5,144.97 times.

The final number of shares offered in the public offering was 5.3408 million, representing about 10% of the total shares offered.

A total of approximately 237,900 valid applications were received, with about 26,704 applications processed.

The probability of an applicant being allocated one board lot was approximately 2%.