Hang Seng Index halted a three-day losing streak, closing up 176 points; Dell's explosive earnings propelled Lenovo Group to surge over 20%; memory sector continues to rise—consider CSOP's 2x leveraged long Samsung ETF

U.S. stocks closed at new record highs again overnight; Dell (Dell $Dell Technologies (DELL.US)$ ) reported first-quarter results that vastly exceeded expectations, with AI server demand driving total revenue up 88% year-over-year to $43.8 billion and adjusted EPS more than tripling. Its after-hours share price surged by approximately 40%, boosting market sentiment. Hong Kong stocks opened 155 points higher this morning, rose by over 300 points intraday, but the gain narrowed toward the close, ending the day at 25,182, up 176 points or 0.7%, halting a three-day decline, with total turnover of HK$462.1 billion. The Hang Seng China Enterprises Index closed at 8,425, up 61 points or 0.7%. The Hang Seng Tech Index ended at 4,884, down 4 points or less than 0.1%. Southbound capital recorded net inflows of RMB 1.8 billion for the day.

Dell’s stellar earnings directly ignited Lenovo Group (0992) $LENOVO GROUP (00992.HK)$ , the stock price surged sharply throughout the day by HK$4.32 or 21.95%, closing at HK$24—a new all-time closing high—and marking a cumulative gain of 82.51% over five consecutive trading days, making it the best-performing blue chip of the day; Innovent Bio (1801) $INNOVENT BIO (01801.HK)$ announced a global strategic licensing and collaboration agreement with Pfizer covering 12 early-stage and innovative oncology R&D programs, with an upfront payment of US$650 million, total potential deal value up to US$10.5 billion, and eligibility for double-digit royalty on sales. The news drove its share price up by HK$8.5 or 11.36%, closing at HK$83.35. Boosted by this development, the biotech sector rebounded collectively, with CSPC Pharma (1093) $CSPC PHARMA (01093.HK)$ rising HK$0.54 or 7.76% to close at HK$7.5; Wuxi Apptec (2359) $WUXI APPTEC (02359.HK)$ gaining HK$4.8 or 3.83% to close at HK$130.3; Sino Biopharmaceutical (1177) $SBP GROUP (01177.HK)$ advancing HK$0.18 or 3.74% to close at HK$4.99.

Apple-related stocks saw notable movements amid reports that Apple will integrate extensive AI features into its new iOS system. Sunny Optical (2382) $SUNNY OPTICAL (02382.HK)$ jumped HK$10.15 or 13.78% to close at HK$83.8; FIH Mobile (2038 $FIH (02038.HK)$ ) rose HK$1.88 or 6.65% to close at HK$30.14; AAC Technologies (2018) $AAC TECH (02018.HK)$ gained HK$1.64 or 3.74% to close at HK$45.5.

The State Council released the '15th Five-Year Plan for Urban Renewal,' allowing local governments to use special-purpose bonds to support eligible urban renewal projects, prompting a broad rally across mainland property developers. Country Garden (2007) $COUNTRY GARDEN (02007.HK)$ rose HK$0.034 or 16.27%, closing at HK$0.243; China Vanke (2202) $CHINA VANKE (02202.HK)$ rose HK$0.17 or 6.69%, closing at HK$2.71; Longfor Group (0960 $LONGFOR GROUP (00960.HK)$ ) rose HK$0.37 or 4.95%, closing at HK$7.85; China Overseas Land & Investment (0688) $CHINA OVERSEAS (00688.HK)$ rose HK$0.48 or 3.17%, closing at HK$15.62; China Resources Land (1109) $CHINA RES LAND (01109.HK)$ rose HK$0.84 or 2.44%, closing at HK$35.32.

Chip stocks saw profit-taking at higher levels; SMIC (0981) $SMIC (00981.HK)$ fell HK$6.65 or 7.54%, closing at HK$81.6, the worst-performing constituent stock; Hua Hong Semiconductor (1347) $HUA HONG GRACE (01347.HK)$ fell HK$8.7 or 5.12%, closing at HK$161.3; GigaDevice (3986) $GIGADEVICE (03986.HK)$ fell HK$50 or 6.33%, closing at HK$740; Montage Technology (6809) $MONTAGE TECH (06809.HK)$ plunged HK$58.8 or 12.82%, closing at HK$400.

BYD (1211) $BYD COMPANY (01211.HK)$ announced mass production of its 4-nanometer autonomous driving chip. BYD's share price rose HK$1 or 1.11%, closing at HK$91.3. However, the news negatively impacted other autonomous driving-related stocks. 51WORLD (6651) $51WORLD (06651.HK)$ fell HK$19.05 or 16.42%, closing at HK$96.95; Horizonrobot (09660) $HORIZONROBOT-W (09660.HK)$ dropped HK$0.4 or 7.03%, closing at HK$5.29; CIDI Smart Driving (3881) $CIDI (03881.HK)$ declined HK$1.6 or 6.94%, closing at HK$21.46; Li Auto (2015) $LI AUTO-W (02015.HK)$ was downgraded by multiple major brokerages following its earnings announcement, with its share price falling HK$2.6 or 4.3%, closing at HK$57.85; XPeng (9868) $XPENG-W (09868.HK)$ also dropped HK$2.5 or 3.77%, closing at HK$63.85.

Internet stocks showed mixed performance. Baidu (9888) $BIDU-SW (09888.HK)$ surged strongly in early trading and closed up HK$4.4 or 3.5% at HK$130; Tencent (0700) gained HK$2.2 or 0.52%, closing at HK$427.2; Meituan (3690) $MEITUAN-W (03690.HK)$ edged up HK$0.15 or 0.2%, closing at HK$73.45; Alibaba (9988) $BABA-W (09988.HK)$ fell HK$0.90 or 0.74%, closing at HK$120.90; JD.com (9618 $JD-SW (09618.HK)$ ) dropped 0.61%, closing at HK$113.50; Xiaomi (1810) $XIAOMI-W (01810.HK)$ fell HK$0.52 or 1.82%, closing at HK$28.04. Among AI large-model stocks, Zhipu AI (02513 $KNOWLEDGE ATLAS (02513.HK)$ ) surged more than 23% intraday, peaking above HK$1,993 to hit a record high, but subsequently pulled back sharply, closing the day at HK$1,595, down 1.42%, with turnover exceeding HK$5.1 billion.

Elsewhere, Pop Mart (9992) $POP MART (09992.HK)$ saw continued buying interest after CEO Wang Ning appeared at a State Council Information Office briefing holding a 'Star Person' figurine, vowing to build a world-class company. The stock rose HK$11.90 or 7.37%, closing at HK$173.40; newly listed Creality 3D (3388) $CREALITY (03388.HK)$ debuted today, closing at HK$22.80, up 21.28% from its IPO price of HK$18.80, giving investors a paper profit of HK$600 per lot of 150 shares.

Global AI memory demand continues to surge. Samsung Electronics recently became the first in the industry to deliver samples of its cutting-edge 12-layer HBM4E to clients, offering over 30% higher capacity than the previous generation. Rival SK Hynix is expected to provide samples of comparable specifications no sooner than the second half of this year, further solidifying Samsung’s competitive edge in the high-end AI memory market. The news drove Samsung’s share price on the Korean exchange up over 5.84% today to KRW 317,000, pushing its market capitalization past the USD 1 trillion mark. Fundamentally, Samsung reported consolidated revenue of KRW 133.9 trillion for Q1 2024, a 69% year-over-year increase and a record high for a single quarter. Operating profit soared more than sevenfold year-over-year to KRW 57.2 trillion—also a historic high—with the semiconductor division contributing over 90% of total profit, primarily driven by rising prices of AI high-bandwidth memory. Samsung’s management expects memory supply shortages to worsen throughout the year, supporting sustained high pricing. Additionally, Samsung reached a 10-year wage agreement with its labor union, successfully averting a large-scale strike originally scheduled for May, thereby eliminating potential supply chain risks and further boosting market confidence.

Investors seeking to amplify Samsung Electronics’ upside using leverage may consider the CSOP Daily Leveraged 2x Samsung ETF (7747) $CSOP Samsung Electronics Daily (2x) Leveraged Product (07747.HK)$ , which closed at HK$177.15 today, up HK$18.70 or 11.8%, directly benefiting from Samsung’s strong performance. However, investors should note that leveraged ETFs are subject to compounding effects, which may cause long-term returns to deviate significantly from the target multiple. The 2x leverage also magnifies downside risk, and returns are further affected by fluctuations in the KRW/HKD exchange rate. Actual returns may differ from expectations, making such instruments unsuitable for long-term holding. They are better suited for short-term traders who are bullish on Samsung Electronics and possess adequate risk tolerance.

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