Hong Kong Stocks Rise on Chip Rally

The Hang Seng Index rose 1.2%, or 283 points, to 24,327 on Friday, tracking gains after a rally in US chipmakers fueled a rebound on Wall Street overnight. Stocks climbed as optimism surrounding technology shares outlasted lingering concerns over the Middle East, while lower oil prices further supported risk appetite. Sentiment was also supported by reports that the US and Iran will continue technical talks despite recent military strikes, raising hopes that diplomatic engagement could help prevent a broader regional conflict.  Meanwhile, investors continued to monitor Hong Kong's robust IPO pipeline, supported by strong fundraising from Chinese technology firms. Tech shares led the advance, with Semiconductor Manufacturing International Corporation and Kingboard Laminates advancing 4.4% and 10.6%, respectively. Other notable gainers included HKEX (1.7%), Kuaishou (2.0%), ASMPT Limited (6.2%), and InnoScience Technology (3.6%).

The Hang Seng Index fell 0.7%, or 169 points, to close at 24,030 on Thursday, reversing early gains as weakness and volatility in regional technology shares weighed on market sentiment. Knowledge Atlas Technology, also known as Zhipu AI, surged more than 11.3% as volatility surrounding its recent IPO share lock-up expiration eased, while rival MiniMax slumped nearly 18% during its first major lock-up expiry. Meanwhile, Smart-Core Holdings jumped more than 23%, bucking the broader market decline. The weakness in Hong Kong came despite rebounds elsewhere in Asia, with renewed US-Iran tensions pushing oil prices higher and adding pressure to regional risk sentiment. Notable laggards were Tencent (-1.9%), Xiaomi (-1.2%), Meituan (-3.0%), Kuaishou (4.3%), and Pop Mart International (-2.5%). In contrast, Semiconductor Manufacturing International Corporation surged 10.2%.

The Hang Seng Index edged up 0.4%, or 101 points, to 24,302 on Thursday, extending the previous session's strong rally as investors continued to favor technology and semiconductor shares. Market sentiment was supported by a busy IPO pipeline, with Apple supplier Luxshare Precision Industry set to debut at HK$63.25, near its IPO price, while AI firm Zhipu AI launched a Hong Kong share sale seeking to raise up to HK$4 billion, reinforcing optimism toward AI-related stocks. Gains came despite renewed US-Iran hostilities that pushed oil prices above $74 a barrel and lifted Treasury yields. Meanwhile, data showed China's annual inflation rate eased to 1.0% in June from 1.2% in May, while producer prices increased 4.1%, accelerating from 3.9%. Technology and retail trade stocks led the advance. Notable gainers included Knowledge Atlas (14.5%), Semiconductor Manufacturing International Corporation (4.2%), Xiaomi (1.7%), MiniMax (2.0%), Lenovo (3.9%), and Shanghai Iluvatar CoreX (4.6%).