HKEX Close (01.16) | Hang Seng Index Down 0.29%, Semiconductor Industry Shows Strong Performance, Shipping Stocks Under Pressure

According to Zhitong Finance APP, Hong Kong stocks opened higher but closed lower today, with all three major indices finishing in negative territory. By the close, the Hang Seng Index fell by 0.29% or 78.66 points to 26,844.96 points, with a total turnover of HK$255.079 billion for the day; the Hang Seng China Enterprises Index fell 0.5% to 9,220.81 points; and the Hang Seng TECH Index dropped 0.11% to 5,822.18 points. For the week as a whole, the Hang Seng Index gained 2.34%, the HSI China Enterprises Index rose 1.9%, and the Hang Seng TECH Index climbed 2.37%.

Guotai Junan Securities stated that at the beginning of 2026, Hong Kong stocks are experiencing a 'spring rally' which is expected to continue until mid-year, driven by coordinated easing expectations domestically and abroad, as well as policy-driven support. The second half of the year will require attention to uncertainties such as the Federal Reserve's interest rate cuts and international relations. It is recommended that public mutual funds investing in Hong Kong stocks and H+A equity funds build a three-dimensional structure focused on 'technology, resources, and dividends'.

Performance of Blue-Chip Stocks

Li Ning (02331) $LI NING (02331.HK)$ Outstanding performance was noted. By the close, it surged 4.35% to HK$20.4, with a turnover of HK$546 million, contributing 3.16 points to the Hang Seng Index. Morgan Stanley released a research note stating that Li Ning expects its revenue last year to have achieved moderate growth (compared to previous guidance of flat), with net profit margins anticipated to remain stable at high single-digit levels, implying an upward revision to market consensus forecasts for last year’s net profits. Additionally, considering that a major shareholder increased their stake last year, Morgan Stanley believes that market expectations for a turnaround in Li Ning’s performance will rise.

Among other blue chips, Techtronic Industries (00669) $TECHTRONIC IND (00669.HK)$ rose 4.87% to HK$103.3, contributing 11.28 points to the Hang Seng Index; Wharf Real Estate (01997) climbed 2.78% to HK$25.18, adding 1.79 points to the index; Ali Health (00241) fell 5.16% to HK$6.8, dragging down the Hang Seng Index by 3.89 points; Orient Overseas International (00316) declined 4.98% to HK$120.1, pulling the Hang Seng Index down by 1.34 points.

In terms of popular sectors,

In the market, large-cap tech stocks showed mixed performance, with Alibaba up 0.97% and Tencent down 0.72%. The semiconductor supply chain demonstrated strong momentum, with memory chip leader GigaDevice surging over 16%; the commercial aerospace sector received another catalyst, driving a recovery in related concept stocks; State Grid disclosed a 4 trillion yuan plan, boosting power equipment stocks; AI application sectors diverged, with MINIMAX soaring over 22%, while Ali Health continued to fall by more than 5%. On the other hand, Maersk announced the resumption of its Red Sea route, pressuring shipping stocks; property and oil & gas stocks turned negative.

1. The semiconductor supply chain demonstrated strong momentum.At the close, GigaDevice (03986) surged 16.74% to HK$272; SICC (02631) rose 13.5% to HK$67.7; FORTIOR (01304) gained 8.21% to HK$137; and Hua Hong Semiconductor (01347) climbed 7.39% to HK$106.8.

Taiwan Semiconductor disclosed its 2026 capital expenditure yesterday, expected to reach $52-56 billion, significantly exceeding market expectations. Management stated that capital expenditures will increase substantially over the next three years. Additionally, according to a Counterpoint Research report, the memory market has entered a "super bull" phase, surpassing even the historical high of 2018. It is projected to rise another 40%-50% by Q1 2026. Guojin Securities pointed out that AI-driven large models are pushing storage towards 3D evolution, combined with the expansion projects of CXMT and YMTC, creating new growth opportunities for China's semiconductor equipment industry chain.

2. Most power equipment stocks moved higher.At the close, Harbin Electric (01133) rose 5.78% to HK$18.86; Dongfang Electric (01072) gained 4.92% to HK$26; and CRRC Times Electric (03898) increased 2.58% to HK$39.72.

According to China Electric Power News on January 15, during the '15th Five-Year Plan' period, State Grid Corporation’s fixed asset investment is expected to reach 4 trillion yuan, a 40% increase from the '14th Five-Year Plan' investment, to drive high-quality development of the new power system industry chain and supply chain through expanded effective investment. Notably, an 'electricity shortage' triggered by AI data centers has swept across the United States and shows signs of intensifying. Huaxi Securities believes that driven by the rapid global development of AIDC and sustained growth in grid construction investment, power equipment demand is entering a boom cycle.

3. Commercial aerospace concepts rebounded.At the close, Goldwind Technologies (02208) rose 3.52% to HK$14.71; JunDa Co., Ltd (02865) gained 2.8% to HK$25; and Asia Pacific Satellite (01045) increased 2.15% to HK$4.27.

The commercial aerospace sector received another catalyst. Elon Musk indicated via social media that the Starship launch frequency would exceed once per hour within three years, clearly stating SpaceX’s ultimate goal of producing 10,000 Starships annually. Domestically, China Aerospace Science and Technology Corporation held its 2026 annual work conference on January 15. The meeting proposed advancing major projects such as manned moon landings and deep space exploration in 2026, breaking through reusable rocket technology, vigorously developing commercial aerospace and low-altitude economy industries, and proactively laying out future industries like space digital intelligence.

4. The robotics concept showed active performance.At the close, Geekplus-W (02590) rose 6.97% to HK$28.86; CloudTrace (02670) increased by 4.84% to HK$121.3; Lens Technology (06613) climbed 4.33% to HK$29.86; Sanhua (02050) gained 2.67% to HK$38.52.

According to an Omdia report, the global humanoid robot annual installation volume is expected to add approximately 16,000 units in 2025. Zhiyuan Robotics ranks at the top among global manufacturers for its annual humanoid robot installations, followed by Unitree Technology and Ubtech Robotics. Omdia predicts that the humanoid robot market will experience exponential growth over the next decade, with global shipments expected to reach 2.6 million units by 2035. Guotai Haitong Securities believes that recent progress in both the industrial and capital markets of domestic and international humanoid robot companies is significant. The domestic and overseas humanoid robot industries are expected to resonate, accelerating the commercialization process globally.

5. Shipping stocks were generally under pressure.At the close, Orient Overseas International (00316) fell 4.98% to HK$120.1; SITC International (01308) dropped 3.96% to HK$26.22; COSCO Shipping Holdings (01919) declined 3.35% to HK$13.26.

Danish shipping giant Maersk stated on January 15 that it would resume navigation through the Red Sea and Suez Canal after the regional security situation stabilized, but will continue to closely monitor the security situation in the Middle East. The market generally believes that as ships gradually return to the shorter Suez route, freight rates may face downward pressure. A HSBC Global Research report indicated that the resumption of shipping routes via these waters could increase capacity by 7% to 8%, leading to lower shipping fees. The bank predicts a 9% to 16% drop in shipping fees this year, assuming that disruptions in Red Sea shipping persist until at least mid-year. The bank currently sees downside risks in related forecasts.

Notable movers

1. MINIMAX (00100) led the AI concept, rising 22.35% to HK$438 at the close.

CITIC JianTou's research report pointed out that amid the generative AI wave sweeping the globe, MINIMAX-WP has emerged from industry competition with 'counter-consensus' strategic focus on breakthroughs in model intelligence. As one of the first companies in Shanghai to receive large-model registration, the company demonstrates strong development potential through technological expertise and commercial foresight.

2. Conant Optical (02276) hit a new high, surging 10.52% to HK$60.4 at the close.

Recent reports indicate that Meta Platforms and EssilorLuxottica are discussing doubling the production capacity of AI-powered smart glasses by the end of this year to capture growing demand and stay ahead of competitors. Sources say that as Ray-Ban Meta glasses sales gradually pick up, Meta has suggested increasing annual production capacity to 20 million pairs or more by the end of 2026.

3. Dering Holding (01709) showed a significant rise, closing up 6.76% at HK$2.21.

Dering Securities (Hong Kong) Limited, a subsidiary of Dering Holding, announced that it had received conditional approval from the Hong Kong Securities and Futures Commission on January 15 to upgrade its Type 4 regulated activity license (providing advice on securities), adding digital asset consulting services qualification.

4. The lithium miners' duo fell sharply; by the close, Ganfeng Lithium (01772) dropped 4.94% to HK$63.5, while Tianqi Lithium (09696) declined 2.98% to HK$55.4.

On January 16, the main contract for lithium carbonate futures plunged to a limit-down, breaking below the 150,000 yuan mark. Huatai Futures noted that due to recent continuous regulatory interventions by the Guangzhou Futures Exchange, combined with prices already being at a two-year high, lithium carbonate prices have continued to retreat. The firm pointed out that there is currently significant divergence between bulls and bears, downstream energy storage demand remains strong, and this week saw some destocking. However, the transmission of lithium carbonate prices to the cell end has been poor, and current prices are still at a two-year high. It is expected that prices will continue to fluctuate widely and carry a risk of further correction.

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