Hong Kong Stocks Edge Down Despite Strong Nvidia Results

The Hang Seng Index fell 0.3%, or 84 points, to close at 25,566 on Thursday, giving back part of the previous session’s gains as investors remained cautious despite strong Nvidia earnings. Nvidia’s revenue more than doubled year-on-year to $96.2 billion in the second quarter, reinforcing optimism over continued AI demand. However, US inflation remained elevated, with the PCE price index holding at 3.7% year-on-year in July and core PCE at 3.3%, keeping expectations for Federal Reserve rate cuts subdued. Meanwhile, Alibaba remained in focus after completing its HK$80 billion share placement, with concerns over heavy AI spending and shareholder dilution weighing on sentiment. On the data front, China’s industrial profits rose 17.6% year-on-year in the first seven months of 2026, slowing from an 18.7% increase in the first half. Market moves were mixed, with Kingboard Laminates (10.5%), Z.AI (12.6%), and MiniMax (3.8%) advancing, while WuXi XDC (-2.3%) and Xiaomi (-3.4%) declined.

The Hang Seng Index rose 0.6%, or 142 points, to close at 25,653 on Wednesday, following gains on Wall Street overnight as technology stocks rebounded, while easing crude oil prices and lower US Treasury yields offered some support to Asian equities, although uncertainty surrounding US-Iran developments kept investors cautious. The rise was led by healthcare stocks, with Innovent Biologics climbing 9.7%, while broader sentiment was also supported by gains in tech shares. Meanwhile, Alibaba was also in focus after Chairman Joe Tsai bought an additional 720,000 shares worth about HK$82 million, following recent purchases by other senior executives. The buying helped ease concerns over the company’s HK$80 billion share placement to fund its AI expansion, which is expected to close on Wednesday. Notable movers included Tencent (0.8%), Semiconductor Manufacturing International Corporation (2.7%), Xiaomi (2.5%), Meituan (1.1%), and MiniMax (1.1%).

The Hang Seng Index was little changed, to close 25,511 on Tuesday, tracking overnight weakness on Wall Street as technology shares came under pressure. The decline was limited as strength in Hong Kong’s IPO market helped cushion broader risk-off sentiment. Investors remained cautious following Monday’s sharp sell-off in Alibaba after the e-commerce giant announced an HK$80 billion share placement to fund its artificial intelligence infrastructure expansion. The move raised concerns over potential dilution and the company’s rising AI-related capital spending. Meanwhile, investors continued to watch Shein’s Hong Kong IPO, which could raise up to US$1.8 billion at a valuation of about US$27 billion. Market attention also remained on upcoming US economic data and Federal Reserve policy signals for clues on the interest-rate outlook. Notable laggards included Meituan (-6.7%), MiniMax (-4.0%), and Xiaomi (-2%). While Kingboard Laminates and Wuxi Biologics rose 13.8% and 14.8% respectively.