To The Moon

Hong Kong stocks saw a mixed session at midday, with the Hang Seng Index falling 0.11%, down 28 points to 25,178 points, while the Hang Seng Tech Index edged up 0.16%. The morning session recorded a turnover of 140.5 billion Hong Kong dollars.

China PICC Property and Casualty Co Ltd (02328) surged over 7%, as institutions anticipate a favorable outlook for the company's underwriting profits and investment returns in the first half of the year. Some AI application stocks advanced, driven by the official open-sourcing of the Kimi K3 model by Moonshot AI, which institutions believe marks a significant leap in open-source model capabilities.

Vision Technologies (06636) rose 8%, and China Software International (00354) gained 9%. Shanghai Aunty (02589) extended its rally by over 3%, following expectations of a 50% to 60% year-on-year increase in net profit for the first half of the year. Cloudy Intelligence Technology (01037) soared 66% after receiving a full takeover offer from Hon Hai at a premium of approximately 55.46%. Fangyuan Life Service (09978) skyrocketed over 230% after resuming trading, following a cash offer at a discount of about 39.13%.

Brain-computer interface concept stocks mostly rose, as semi-invasive brain-computer interface products are expected to receive regulatory approvals, with institutions suggesting the market has significant long-term elasticity. Nanjing Panda Electronics Company (00553) climbed 8%, while Brain-pilot Technologies Co Ltd (06681) added 1.8%.

The non-ferrous metals sector collectively declined, with geopolitical conflicts amplifying volatility and the resumption of production at Grasberg putting pressure on copper prices. Ganfeng Lithium Co Ltd (01772) fell 5.7%, and Aluminum Corporation of China (02600) dropped 3%.

PCB concept stocks suffered heavy losses, as cracks in AI capital expenditure expectations hint at an accelerated divergence in the PCB industry. Kingboard Laminates (01888) plunged 16%, and Guanghe Technology (01989) lost 14%. GigaDevice Semiconductor (03986) tumbled over 15%, dragged by concerns over a potential fund shift due to the listing of ChangXin Memory Technologies, with Morgan Stanley warning that memory prices are nearing a peak.

Laopu Gold (06181) dropped over 22%, despite reporting an over 80% increase in net profit for the first half of the year, as second-quarter performance showed a significant sequential decline. After the South Korean KOSPI index resumed trading, losses widened, with CSOP Korea 2x Leveraged (07709) falling over 24%.