Hong Kong Hang Seng Tech Index rises over 3% in the first half of the day, with internet and non-ferrous metals sectors leading the gains

Hong Kong stocks opened higher and maintained a high-level oscillation, with market sentiment significantly recovering. As of midday close, the Hang Seng Index rose 2.29% to 27,019.21 points; the Hang Seng Tech Index increased 3.32% to 5,384.52 points; and the Hang Seng China Enterprises Index gained 2.41% to 9,175.91 points. All three major indices saw substantial gains, with clear signs of capital inflow and moderate volume expansion compared to the same period yesterday.

The market showed a structural rally, with internet technology, semiconductors, gold and non-ferrous metals, consumer electronics, and lithium batteries leading the gains.

The internet sector advanced across the board, mainly benefiting from user growth, a rebound in commercialization, and valuation recovery logic. Meituan-W surged over 7%, JD.com rose more than 5%, Alibaba-W, Tencent Holdings, and Kuaishou-W all increased over 3%.

The semiconductor sector also moved upward, with SMIC and Hua Hong Semiconductor rising nearly 5%. The sector’s optimism is supported by global AI computing demand and expectations of domestic localization.

International gold prices rose, driving gains in gold and other non-ferrous metal stocks. Zijin Gold International increased nearly 7%, Zijin Mining rose 5%, Jiangxi Copper gained 5%, and Lingbao Gold also rose 5%.

Additionally, the gaming and new energy vehicle supply chains performed actively, becoming main bullish sectors in the early session. BYD Co. Ltd. rose nearly 4%.

The market was not broadly bullish; the AI large models, some pharmaceutical stocks, and traditional real estate sectors performed relatively weakly, showing clear differentiation.

The large model sector led declines, with Zhizhi (02513.HK) down 23%, Haizhi Technology Group down 18%, and MINIMAX-WP (00100.HK) down 10%. The decline was mainly due to Zhizhi apologizing for the GLM Coding Plan revision, acknowledging issues such as opaque rules, slow GLM-5 grayscale rhythm, and rough upgrade mechanisms for old users. Coupled with previous sharp stock price increases and profit-taking at high levels, short-term operational turbulence suppressed sector sentiment.

The pharmaceutical sector saw slight adjustments influenced by expectations of centralized procurement policies and some companies’ earnings falling short of expectations. Traditional real estate weakened due to unclear deleveraging pace and weak sales data, with risk-averse sentiment rising amid cautious liquidity.

On the external front, the U.S. Supreme Court tariff ruling and new policy implementation brought short-term uncertainty. However, the Hong Kong market focused on domestic liquidity improvement and favorable policies for the tech industry, boosting risk appetite. Institutional views from CITIC Securities and China International Capital Corporation suggest that the valuation of Hong Kong tech stocks is attractive, with increased earnings visibility and potential for continued recovery. They also noted that the large model sector should monitor expansion progress, user retention, and the effectiveness of compensation schemes, as short-term shocks still need to be digested.

Overall, Hong Kong stocks rebounded strongly in the early session, with the tech sector leading the gains. Continued improvement in liquidity supports market recovery. In the afternoon, attention should be paid to whether trading volume can sustain and whether weak sectors like large models stabilize. For trading strategies, focus on high-growth sectors such as technology and consumer sectors, while avoiding sectors vulnerable to short-term shocks.