Hong Kong Stock Market Review | Hong Kong Stocks Retreat, 'Meme Stock' Surges Over 500%

On May 5, the Hong Kong stock market experienced significant declines in the morning session but rebounded somewhat in the afternoon. Ultimately, all major indices retreated.

At the close, the Hang Seng Index stood at 25,898.61 points, down 197.27 points or 0.76%.

The Hang Seng Tech Index closed at 4,929.68 points, down 47.02 points or 0.94%.

In terms of market focus, global chip-related stocks in the semiconductor industry collectively surged, and it seems that any stock associated with 'chips' in the Hong Kong stock market could rise. Over the past two trading sessions, CoreTech (HK00365) has become the largest speculative stock in Hong Kong.

Yesterday, CoreTech skyrocketed by 196%, and during today's session, the stock surged as much as 106%, eventually closing more than 66% higher. On April 30, CoreTech closed at HKD 0.26, while today's intraday high reached HKD 1.59, resulting in a cumulative maximum increase of over 511% in just two trading days.

Public information shows that CoreTech’s wholly-owned subsidiary, Ritech, has long been active in the SMT (Surface Mount Technology) and semiconductor equipment manufacturing fields, boasting a complete industrial chain layout and rich industry experience, providing customers with integrated semiconductor and SMT production line equipment solutions.

According to the company’s recently announced 2025 annual report, during the reporting period, CoreTech achieved revenue of HKD 338 million, an increase of 36.62% year-on-year, and net profit attributable to shareholders of HKD 19.2 million, reversing losses from the previous year. The company turned profitable in 2025, primarily due to significant growth in its core businesses: SMT and semiconductor equipment and related businesses, as well as energy business revenue.

Elsewhere in the market, technology and internet stocks mostly declined, with Xiaomi and Meituan falling over 1%, while Baidu rose more than 2%. Lithium battery stocks bucked the trend, with CATL rising over 3%. Auto stocks weakened, with Seres falling over 6%. Gold stocks generally dropped, with Tongguan Gold falling more than 4%. Among newly listed stocks, Tianxing Medical surged over 190% at the open on its first day of trading, but gains narrowed later, closing up over 118%.

Market Outlook:

In its latest research report, Galaxy Securities noted that the narrative around Hong Kong stocks’ value proposition has shifted from 'broad undervaluation' to 'selective undervaluation.' Currently, the overall valuation of Hong Kong stocks is not cheap (PE at the 80th percentile), but sectors such as technology and high-dividend assets like energy still offer structural valuation advantages. Despite ongoing external liquidity pressures, Hong Kong stocks remain attractive for selective defense and left-tail positioning opportunities.

Investment strategies should focus on three main themes: (1) The technology sector, particularly semiconductors and hardware equipment, where AI (artificial intelligence) token export logic continues to hold, with attention to catalysts from new model releases; (2) Innovative pharmaceuticals, where business development overseas remains clear, and with the ASCO (American Society of Clinical Oncology) conference approaching, the window for strategic allocation is still open; (3) High-dividend or dividend-paying assets such as telecommunications services, energy, and utilities, which combine defensive qualities with growth potential, especially benefiting from expanding global power shortages and AI data center construction.

Disclaimer: The content and data provided in this article are for reference only and do not constitute investment advice. Verify before use. Any actions taken based on this information are at your own risk.

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