Rising rate hike expectations weigh on tech stocks again; Hang Seng Index extends losses to a fifth day, falling another 432 points. Defensive stocks outperform—consider high-yield funds like ChinaAMC Asia High Dividend Equity ETF.

Bank of America forecasts three Fed rate hikes this year, while Deutsche Bank expects 25-basis-point hikes each in September and December—and doesn’t rule out an earlier move as soon as July. Asian markets were broadly under pressure today, with US tech stocks also declining in pre-market trading. South Korea’s market plunged nearly 10% for the day. Hong Kong’s Hang Seng Index opened up 31 points this morning but quickly reversed course, dropping as much as 516 points to an over-one-year low of 23,252. It pared some losses by the close, ending the day at 23,336—a decline of 432 points or 1.82%. This marks its fifth consecutive loss, totaling a drop of 1,506 points (6.1%) over the period. Total turnover reached HK$334.4 billion. The Hang Seng China Enterprises Index closed at 7,759, down 155 points or 1.96%. The Hang Seng Tech Index ended at 4,399, down 150 points or 3.3%. Southbound capital recorded a net inflow of RMB 10.4 billion.

The '618' shopping festival delivered disappointing results, with total online sales across China amounting to RMB 934 billion—up just 4% year-over-year, far below last year’s 15.2% growth—further fueling concerns about the domestic consumption recovery. Internet and e-commerce stocks tumbled sharply: Tencent (0700 $TENCENT (00700.HK)$ ) fell HK$18.20 or 4.2%, closing at HK$414.80—the lowest level in over a year; Alibaba (9988) dropped HK$3.95 or 3.84%, slipping below the HK$100 mark and closing at HK$98.95, a one-year low; JD.com (9618) $JD-SW (09618.HK)$ fell HK$4.70 or 4.4%, closing at HK$102.80; Kuaishou (1024 $KUAISHOU-W (01024.HK)$ ) dropped HK$2.30 or 5.05%, closing at HK$43.22; Xiaomi (1810) $XIAOMI-W (01810.HK)$ marked its fifth consecutive decline, falling HK$1.10 or 4.64%, closing at HK$22.62; Meituan (3690) $MEITUAN-W (03690.HK)$ dropped HK$2.40 or 3.33%, closing at HK$69.60; Baidu (9888 $BIDU-SW (09888.HK)$ ) dropped HK$4.00 or 3.68%, closing at HK$104.70; NetEase (9999) $NTES (09999.HK)$ fell HK$4.30 or 2.3%, closing at HK$185.90.

The non-ferrous metals sector saw a significant pullback, with CMOC (3993) $CMOC (03993.HK)$ plunging HK$2.11 or 10.88%, closing at HK$17.29, making it the worst-performing blue chip of the day; Jiangxi Copper (0358 $JIANGXI COPPER (00358.HK)$ ) dropped HK$4.32 or 10.61%, closing at HK$36.38; Zijin Mining (2899 $ZIJIN MINING (02899.HK)$ ) fell HK$2.06 or 6.52%, closing at HK$29.56; Chalco (2600) $CHALCO (02600.HK)$ declined HK$0.55 or 6.41%, closing at HK$8.03; Laopu Gold (6181) $LAOPU GOLD (06181.HK)$ fell HK$30.8 or 7.08%, closing at HK$404; China Hongqiao (1378 $CHINAHONGQIAO (01378.HK)$ ) dropped HK$0.72 or 3.16%, closing at HK$22.04; MMG (1208) fell HK$0.62 or 7.5%, closing at HK$7.65. Citi issued a research report noting weak solar installation demand in China, with Xinyi Solar (0968) $XINYI SOLAR (00968.HK)$ down HK$0.18 or 8%, closing at HK$2.08, marking the second-largest decline among blue chips. CATL (3750) $CATL (03750.HK)$ announced it will begin delivering its first sodium-ion battery solutions in September this year, but shares opened higher and then declined, closing down HK$38 or 5.12% at HK$704.

AI large-model stocks also saw sharp pullbacks, with MiniMax (0100) $MINIMAX-W (00100.HK)$ facing its first major lock-up expiration since listing, plunging 16.46% to close at HK$398; Zhipu AI (2513 $Z.AI (02513.HK)$ ) tumbled 9.96% from its recent high, closing at HK$1,854; XunCe (3317) $XUNCE (03317.HK)$ fell HK$6.3 or 4.83%, closing at HK$124.2. Semiconductor stocks also declined, with Montage Technology (6809 $MONTAGE TECH (06809.HK)$ ) dropping HK$58 or 12.44%; GigaDevice (3986) $GIGADEVICE (03986.HK)$ fell HK$107.5 or 10.3%; SMIC (0981) $SMIC (00981.HK)$ fell HK$1.05 or 1.77%, closing at HK$77.85; Huahong Semiconductor (1347) $HUA HONG GRACE (01347.HK)$ rose HK$1.70 or 1.03%, closing at HK$166.30. Profit-taking emerged in the Kingboard group, with Kingboard Holdings (0148) $KINGBOARD HLDG (00148.HK)$ slumping HK$13.30 or 9.43%, closing at HK$127.80; Kingboard Laminates (1888) $KB LAMINATES (01888.HK)$ fell HK$4.70 or 5.11%, closing at HK$87.25.

Among the bright spots bucking the market trend, HSBC (0005) $HSBC HOLDINGS (00005.HK)$ hit a record intraday high of HK$150.50, closing up HK$0.80 or 0.54% at HK$148.70; Geely Auto (0175) $GEELY AUTO (00175.HK)$ rose HK$0.37 or 2.12%, closing at HK$17.82, making it the best-performing blue chip of the day; Power Assets (0006) $POWER ASSETS (00006.HK)$ gained HK$0.90 or 1.59%, closing at HK$57.50.

Biotech stocks performed well against the broader market trend, with Akeso (9926) $AKESO (09926.HK)$ rising HK$2.55 or 3.07%, closing at HK$85.50; Innovent Bio (1801) $INNOVENT BIO (01801.HK)$ rose HK$1.15 or 1.5% to close at HK$76.50; Wuxi Bio (2269 $WUXI BIO (02269.HK)$ ) gained HK$0.40 or 1.3% to close at HK$31.14. PharmaEssentia-B (2617) $TRANSTHERA-B (02617.HK)$ plunged 59.71% for the day, closing at HK$11.25, hitting a new all-time low since listing.

In the IPO space, lithium battery separator manufacturer Starke Material (6067) $SENIOR MATERIAL (06067.HK)$ surged 22.5% on its debut, closing at HK$11.00, giving investors a per-lot paper profit of HK$1,010; biotech firm Hua Jian Future (6132) $HJ SCIENCE-B (06132.HK)$ plummeted 56.9% on its debut, closing at HK$35.26, resulting in a per-lot paper loss of HK$4,654.

Hong Kong stocks marked their fifth consecutive decline today, hitting a more-than-one-year low, with non-ferrous metals and tech sectors broadly under pressure as market risk aversion intensified. In this rising interest rate environment, defensive high-yield assets stand out for their allocation value. Today, Power Assets (0006 $POWER ASSETS (00006.HK)$ ) and HSBC (0005) $HSBC HOLDINGS (00005.HK)$ gained ground against the market trend, reflecting investors’ preference for stable cash flows.

Investors seeking stable monthly dividend income for defensive allocation may consider the ChinaAMC Asia High Dividend Equity ETF (3145). $ChinaAMC Asia High Dividend ETF (03145.HK)$ This ETF tracks the 'Bloomberg Asia Pacific High Dividend Yield Net Total Return Index,' which uses Bloomberg’s consensus forecast system to assess the sustainability of companies’ dividend payouts over the next 12 months. The index undergoes semi-annual rebalancing in March and September. Its latest publicly disclosed holdings include WPG Holdings, 360 DigiTech, ASUSTeK Computer, SITC International, and Link Real Estate Investment Trust. By sector, financials represent the largest weighting, followed by information technology, real estate, and industrials. Geographically, the portfolio is primarily focused on Asia-Pacific markets such as Hong Kong, Taiwan, Thailand, and Indonesia, offering relatively high diversification. The fund targets an annualized distribution yield of 8%, pays dividends monthly, and charges an annual management fee of 0.60%. Each board lot consists of 200 shares, and the most recent ex-dividend date was July 8, with a dividend of HK$0.10 per share. Investors should note that the distribution yield is not guaranteed; distributions may be paid out of capital, holdings are adjusted periodically, and rising interest rate expectations currently exert downward pressure on the valuations of high-yield assets. Past performance does not guarantee future results. This ETF is suitable for income-focused investors seeking stable monthly dividends over a medium- to long-term horizon and who are willing to accept market volatility in the Asia-Pacific region.

@孫子的末代傳人 @中戶變大戶小牛變大牛 @股海GSO

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