To The Moon

The three major Hong Kong stock indices all moved higher in Monday's session. By the midday break, the Hang Seng Index had gained 2.38% to 20,457.24, the Hang Seng Tech Index surged 4.34%, and the Hang Seng China Enterprises Index advanced 3.08%.

Key Sectors and Movers

Technology stocks saw widespread gains. Lenovo Group Ltd (HK: 0992) surged over 9%, while Alibaba Group Holding Ltd (HK: 9988) jumped more than 8%. Kuaishou Technology (HK: 1024) rose over 6%, Xiaomi Corporation (HK: 1810) climbed more than 5%, and Baidu, Inc. (HK: 9888) was up over 4%. The semiconductor sector was notably strong, with Huahong Grace Semiconductor Manufacturing Corporation (HK: 1347) soaring more than 8%. AI application stocks led the gainers, with Knowledge Atlas (HK: 2513) rocketing over 17%. Mainland banking stocks were also active, with Agricultural Bank of China Ltd (HK: 1288) rising more than 4%.

Semiconductor Strength

The semiconductor sector's strength follows a Spring 2026 forecast from the World Semiconductor Trade Statistics organization, projecting the global semiconductor market to reach $1.51 trillion, a near 90% year-on-year increase, which would be the highest growth rate on record. This growth is primarily driven by memory chips and logic chips, with core demand momentum coming from AI data centers, High Bandwidth Memory (HBM), and accelerated computing platforms.

AI Application Surge

The surge in AI application stocks was highlighted by Knowledge Atlas (HK: 2513). On July 7th, the day before its post-IPO lock-up period expired, multiple cornerstone investors collectively expressed their intention for "long-term holding." JSC International Investment Fund SPC stated its willingness to continue holding shares based on long-term confidence in the company's future development. Similarly, professional market-oriented investment institutions WT Asset Management and Optimas Capital Limited, along with early shareholder and cornerstone investor Lingyun Guang Technology Co., Ltd., also expressed their long-term holding intentions. These institutions collectively hold nearly 70% of the cornerstone shares subject to the lock-up expiration.

Mainland Bank Activity

The activity in mainland bank stocks comes as 33 banks have finalized their 2025 dividend schedules as of July 6th. Among them, 10 banks are set for concentrated dividend payouts this week (July 6th-10th), with a total distribution exceeding 91 billion yuan, including Bank of China Ltd (HK: 3988), Bank of Communications Co., Ltd. (HK: 3328), and China Merchants Bank Co., Ltd. (HK: 3968). Furthermore, the scheduled release dates for the first-half 2026 performance reports of A-share listed banks have been announced. Ping An Bank Co., Ltd. (SZ: 000001) will be the earliest to disclose its interim report, scheduled for August 15th.

New Listings

The Hong Kong market welcomed five new listings on July 8th. Momenta rose over 3%, Reconova fell more than 4%, ECARX gained over 5%, BASIC Semiconductor surged more than 13%, and Baogai New Materials edged slightly higher.