Hang Seng Index rises 327 points to reclaim the 25,000 mark; tech and internet stocks lead a strong rally. Investors seeking broad exposure to tech stock trends may consider the E Fund Hong Kong Exchanges Technology 100 Index ETF.

U.S. PPI annual growth slowed last month, cooling market expectations of further Fed rate hikes. U.S. stocks rose overnight, led by mega-cap tech names, though chip stocks remained under pressure. Hong Kong stocks extended gains today, driven by heavyweight tech and internet stocks. The Hang Seng Index opened 143 points higher and climbed steadily, surpassing the 25,000 level in morning trading. It surged as much as 540 points in the afternoon, reaching an intraday high of 25,221, before paring gains amid weakness in mainland A-shares during late trading. The Hang Seng Index closed at 25,008, up 327 points or 1.33%, marking its first close above 25,000 since June 16, with total turnover of HK$322.8 billion. The Hang Seng China Enterprises Index closed at 8,318, up 133 points or 1.63%. The Hang Seng Tech Index closed at 4,834, up 93 points or 1.98%. Southbound capital recorded a net inflow of RMB 5.04 billion.

Tech and internet stocks were the main drivers behind the market’s rise, as investors anticipated the launch of Apple’s China-market AI system. Alibaba $BABA-W (09988.HK)$ (9988) announced that its Qwen AI model will be integrated into Apple’s intelligent system, pushing its share price up 3.09% to close at HK$116.90, marking its seventh consecutive gain. Market rumors also circulated that Baidu (9888) $BIDU-SW (09888.HK)$ will provide smart search functionality for Chinese iPhone users, lifting Baidu’s shares by 2.6% to close at HK$110.30. Xiaomi (1810 $XIAOMI-W (01810.HK)$ )'s MiMo on-device model has completed national large-model filing; its share price rose 6.34% to close at HK$27.50. Among other tech stocks, Meituan $MEITUAN-W (03690.HK)$ (3690) gained 4.56%, closing at HK$87.20; Kuaishou $KUAISHOU-W (01024.HK)$ (1024) rose 4.97%, closing at HK$46.92; Tencent (0700) $TENCENT (00700.HK)$ advanced 2.11%, closing at HK$484.

Apple-related stocks also followed the tech sector's upward trend, with AAC Technologies (2018) $AAC TECH (02018.HK)$ up 6.5%, closing at HK$41.04; Sunny Optical (2382) $SUNNY OPTICAL (02382.HK)$ rose 1.5%, closing at HK$56.40; BYD Electronics $BYD ELECTRONIC (00285.HK)$ (0285) gained 1.1%, closing at HK$23.46.

Among blue-chip stocks, Pop Mart $POP MART (09992.HK)$ (9992) posted the most notable gain. In the afternoon, news emerged that Pop Mart’s Wang Ning visited Apple headquarters and was received by both Apple’s current and incoming CEOs. The stock ultimately closed up 6.87% at HK$168.10; JD Health ( $JD HEALTH (06618.HK)$ 6618) rose 4.48% to close at HK$39.20; HSBC $HSBC HOLDINGS (00005.HK)$ (0005) hit an intraday high of HK$157.60, reaching a new record high, and closed up 1.03% at HK$156.90. In contrast, Lenovo Group (0992) $LENOVO GROUP (00992.HK)$ was dragged down by profit-taking in AI hardware stocks, falling 6.71% to close at HK$22.26, making it the worst-performing blue chip; Innovent Bio $INNOVENT BIO (01801.HK)$ (1801) declined 2.94% to close at HK$94.20; CK Hutchison $CKH HOLDINGS (00001.HK)$ (0001) dropped 1.68% to close at HK$70.45.

The China Association of Automobile Manufacturers released the 'Automotive Industry Vehicle Cost Calculation Guidelines,' driving auto stocks broadly higher. XPeng Motors $XPENG-W (09868.HK)$ (9868) gained 7.61% to close at HK$56.55; Geely Auto ( $GEELY AUTO (00175.HK)$ 0175) rose 5.38% to close at HK$19.39; BYD Company $BYD COMPANY (01211.HK)$ (1211) advanced 4.6% to close at HK$90.95; Li Auto (2015 $LI AUTO-W (02015.HK)$ ) climbed 3.32% to close at HK$50.40; Nio $NIO-SW (09866.HK)$ (9866) rose 2.17%, closing at HK$40.44.

However, semiconductor and AI hardware-related stocks were notably sold off. South Korea announced a temporary halt to new listings of single-stock leveraged ETFs and raised margin requirements for leveraged ETFs. SK Hynix and Samsung Electronics fell 11.53% and 8.77%, respectively, in the South Korean market. Hong Kong-listed chip stocks were also under pressure, with SMIC $SMIC (00981.HK)$ (0981) down 1.44%, closing at HK$75.20; $HUA HONG GRACE (01347.HK)$ Hua Hong Semiconductor (1347) $GIGADEVICE (03986.HK)$ dropped 7.03%, closing at HK$157.40; GigaDevice $MONTAGE TECH (06809.HK)$ (3986) fell 8.68%, closing at HK$600. Additionally, Montage Technology $KB LAMINATES (01888.HK)$ (6809), a Hong Kong-listed memory sector stock, plunged 22.95% to close at HK$278.60 after its South Korean office was raided over allegations of manipulating semiconductor component prices. Previously hot AI hardware stocks also saw significant pullbacks, with KB Gold Peak $KINGBOARD HLDG (00148.HK)$ (1888) down 13.19%, closing at HK$48.96; K. Wah Group $YOFC (06869.HK)$ (0148) fell 9.55%, closing at HK$56.85; Yangtze Optical Fibre and Cable

(6869) dropped 6.1%, closing at HK$146.80. Among other recently popular stocks, Zhipu $Z.AI (02513.HK)$ (2513) fell 9.32%, closing at HK$1,548; TCL Electronics (1070) $TCL ELECTRONICS (01070.HK)$ dropped 11.9%, closing at HK$13.48. Some small- and mid-cap stocks saw strong capital inflows, with MaiFuShi $MARKETINGFORCE (02556.HK)$ (2556) surging 30.57%, closing at HK$41; Quantitative Investment Group (2685 $QUANTGROUP (02685.HK)$ ) rising 19.05%, closing at HK$17.12; Fubo Group $VOBILE GROUP (03738.HK)$ (3738) gained 11.84%, closing at HK$2.55.

Hong Kong stocks rose today, led by large-cap tech and internet names. The Hang Seng Tech Index closed up 93 points, or 1.98%. Investors looking to gain exposure to traditional tech and internet stocks may consider the E Fund HKEX Tech 100 ETF $E Fund HKEX Tech 100 ETF (03456.HK)$ (3456) as a tool to capture the overall performance of the Hong Kong tech sector. This ETF tracks the HKEX Tech 100 Net Total Return Index and aims to deliver investment returns that closely correspond to the index’s performance before fees and expenses.

The ETF’s portfolio is not solely concentrated on AI hardware but covers 100 technology-related Southbound stocks, spanning sectors such as technology, consumer discretionary, healthcare, and communication services. Major holdings include Tencent (0700), Alibaba (9988), Xiaomi (1810), Meituan (3690), and SMIC (0981). Today’s broad gains among tech leaders helped lift the tech index.

However, today’s market also highlighted significant divergence within the tech sector: AI hardware and semiconductor stocks came under pressure, with Montage Technology (6809) plunging 22.95%, Kingboard Laminates (1888) falling 13.19%, and Hua Hong Semiconductor (1347) down 7.03%. While holding 3456 helps diversify single-stock risk, performance remains subject to the tech sector’s overall valuation, capital flows, and movements in its major constituents. It is better suited for investors who are bullish on the medium- to long-term prospects of Hong Kong’s tech sector, seek diversified exposure to multiple tech-related stocks, and wish to avoid concentrated bets on individual internet or chip stocks.

331K Views