Hong Kong stocks close (May 11) | Hang Seng Index rises 0.05%, semiconductor industry chain surges, gold and airline stocks under pressure throughout the day

According to Zhitong Finance APP, diplomatic engagement between the US and Iran encountered setbacks, leading to renewed tension. Hong Kong stocks opened lower but rose higher throughout the day, with both the Hang Seng Index and the Hang Seng Tech Index turning positive in the afternoon. At the close, the Hang Seng Index gained 0.05% or 13.13 points to reach 26,406.84, with a total daily turnover of 288.491 billion HKD; the Hang Seng China Enterprises Index dropped 0.05% to 8,884.2 points; the Hang Seng Technology Index rose 0.07% to 5,106.4 points.

Industrial Securities pointed out the importance of focusing on technology, growth, and dividend structural opportunities. Technology: With the continuation of the AI narrative, technology remains the main theme, but note that the current Terrific10 companies' earnings and valuations are generally aligned, further valuation increases may require profit-driven support or more abundant liquidity; Growth: In the context of weak recovery prospects and weakened valuation attractiveness, the effectiveness of growth strategies might remain high; Dividend: In an environment of low-interest-rate asset scarcity combined with stronger company intentions for dividends and buybacks, dividend stocks still hold value as a base allocation.

Blue-chip stock performance

Lenovo Group (00992) $LENOVO GROUP (00992.HK)$ Hitting new highs. At the close, it surged 6.94% to HKD 13.41, with a trading volume of 2.464 billion HKD, contributing 9.34 points to the Hang Seng Index. A previous CLSA report estimated that Lenovo's adjusted net profit for the fourth fiscal quarter ending March this year would exceed market expectations by 20%. The report projected that the server business would turn profitable due to strong demand and successful acquisition of memory and CPU support, while PC shipments were expected to grow 8.7% year-over-year, with stable gross margins for this segment.

Among other blue-chip stocks, Longfor Group (00960) $LONGFOR GROUP (00960.HK)$ Surging 8.42% to HKD 9.92, contributing 3.11 points to the Hang Seng Index; Li Auto-W (02015) $LI AUTO-W (02015.HK)$ Rising 5.42% to HKD 73.85, contributing 8.45 points to the Hang Seng Index; New Oriental-S (09901) $NEW ORIENTAL-S (09901.HK)$ Dropped by 4.97%, closing at HKD 41.26, dragging down the Hang Seng Index by 2.63 points; Alibaba-W (09988) $BABA-W (09988.HK)$ Dropped by 3.67%, closing at HKD 133.9, dragging down the Hang Seng Index by 78.05 points.

In terms of popular sectors

On the market, most large technology stocks came under pressure, with Alibaba dropping 3.67% and Tencent falling 1.48%. The semiconductor, computing power hardware industry chain surged, with storage, PCB concepts, and optical communication concepts leading gains; the implementation of property policies helped sustain a 'small spring' in the real estate market, with mainland property stocks continuing to rise; excavator sales both domestically and internationally maintained rapid growth in April, making construction machinery stocks stand out; commercial aerospace, green energy concepts, and some pharmaceutical stocks were active. On the other hand, with tensions rising between the US and Iran causing oil prices to increase again, gold stocks and airline stocks all fell.

1. The semiconductor sector soared, with storage concepts leading gains.At the close, the Southern Twice Leveraged Hynix (07709) $CSOP SK Hynix Daily (2x) Leveraged Product (07709.HK)$ Surged 23.6%, closing at HKD 97; Novosense (02676) $NOVOSENSE (02676.HK)$ Rose 15.47%, closing at HKD 196.3; Montage Technology (06809) $MONTAGE TECH (06809.HK)$ Climbed 11.45%, closing at HKD 418.6; GigaDevice (03986) gained 7.96%, closing at HKD 529;

Against the backdrop of continued global enthusiasm for chip stocks, the semiconductor sector saw significant gains. In the South Korean market, SK Hynix surged 11%, accumulating a year-to-date gain of 189%; Samsung Electronics jumped 6%, surpassing a market value of 1600 trillion won, both hitting new highs. Last Friday, Eastern Time, the Philadelphia Semiconductor Index surged over 5%, with Western Digital soaring more than 16%, Micron Technology climbing over 15%, and Seagate Technology gaining more than 2%, all three reaching new highs. Goldman Sachs believes that this is not an ordinary inventory recovery cycle but an unprecedented demand surge driven by AI computing power (core stocks), increasingly complex manufacturing and packaging processes for HBM squeezing capacity, and insufficient supply elasticity for general DRAM/NAND, together creating a 'super supply crunch cycle'.

2. Multiple stocks in the PCB concept reached new highs.At the close, Sunway Technology (02476) rose 13.67% to HKD 392.6; Kingboard Group (00148) gained 7.71% to HKD 55.85; and Guanghe Technology (01989) climbed 7.04% to HKD 209.8.

On the evening of May 8, Sunway Technology released the latest investor relations activity record. During the Q&A session, Sunway Technology stated that the company currently has a full order book, with smooth business progress and normal execution of order production and delivery. In addition, a Citi research report indicated an increase of 50% to 61% in Kingboard Group's profit forecast for 2026 to 2028, raising the target price from HKD 48 to HKD 65 due to shortages of glass fiber, copper foil, and copper-clad laminate (CCL) amid the AI infrastructure investment boom. The firm believes that Kingboard Group’s current valuation is unreasonable. For investors who missed the strong rise of Kingboard Laminates in April, Kingboard Group is a good option to catch up, reiterating a 'Buy' rating.

3. Real estate stocks continue to rise.At the close, Ocean Group (03377) surged 11.43% to HKD 0.078; Longfor Group (00960) rose 8.42% to HKD 9.92; and R&F Properties (02777) climbed 8% to HKD 0.405.

Recently, many regions have introduced real estate policies intensively. Shenzhen selectively relaxed purchase restrictions in Futian, Nanshan, and Bao'an Xinan Street, raising the maximum amount for housing provident fund loans to CNY 3.51 million. Guangzhou raised the maximum amount for housing provident fund loans to CNY 3.6 million, offered subsidies for 'selling old and buying new', and eased conditions for commercial-to-public housing loans. Tianjin purchased existing commercial housing for use as affordable housing and provided home purchase subsidies. Wuhan implemented district-based recognition of first-home purchases starting from May 1, lifted household registration restrictions on housing provident fund loans across regions, and granted a 1.5% subsidy for first-home purchases and a 1% subsidy for second-home purchases in new urban areas. According to Guojin Securities, looking ahead, the implementation of property policies will help sustain the 'spring fever' momentum in the real estate market, as evidenced by the warming of key city markets during the May Day holiday.

4. Construction machinery stocks performed notably.At the close, Zoomlion (01157) gained 6.31% to HKD 8.43; Sany Heavy Industry (06031) rose 5.55% to HKD 23.6; and China Longgong (03339) increased by 3.3% to HKD 3.44.

According to data from the China Construction Machinery Industry Association, in April 2026, 28,745 excavators of various types were sold, representing a year-on-year increase of 29.8%. Domestic sales reached 16,920 units, a year-on-year increase of 34.9%, while exports amounted to 11,825 units, a year-on-year increase of 23.2%. Cinda Securities pointed out that both domestic and foreign sales of excavators continued to grow rapidly in April. Recently, manufacturers have successively announced price increases. On May 1, Sany Heavy Machinery announced that effective from May 15, prices for its excavator products would be raised by 5%. On May 8, XCMG Excavator announced that starting from June 1, prices for different models of excavator products would be raised by 3 to 5 percentage points. On the same day, Liugong announced that effective from May 20, prices for its excavator products would be raised by 5%.

5. Gold stocks fell across the board.At the close, Tongguan Gold (00340) dropped 10.65% to HKD 2.77; Chifeng Gold (06693) fell 9.67% to HKD 41.28; and Lingbao Gold (03330) declined 8.71% to HKD 22.86.

Diplomatic engagement between the US and Iran has encountered setbacks, leading to renewed tensions. On the evening of May 10, according to Iranian sources, Iran formally rejected a proposal put forward by the US, stating that accepting it would mean succumbing to excessive demands from US President Trump. Trump subsequently posted on social media, calling Iran's response "completely unacceptable." International oil prices surged over 4% at one point, while spot gold fell below the $4,700 mark. Notably, the US released its April non-farm payroll data, showing an increase of 115,000 jobs, surpassing market expectations. According to the latest forecast from Bank of America, the Federal Reserve will delay interest rate cuts until the second half of 2027, primarily due to persistently high inflation levels and robust employment growth.

Hot-moving Stocks

LD ROBOT (01236) soared on its debut day, closing up 127.62% at HK$60.

LD ROBOT is a global leader in full-stack intelligent robotics based on perception intelligence. The company has built intelligent robotics infrastructure centered around visual perception and empowered various smart robot application scenarios, while also offering visual perception products and complete intelligent robotics solutions. During the public offering stage, LD ROBOT recorded an oversubscription of 670,766 times, making it the second most oversubscribed stock on the Hong Kong Main Board in 2026.

Datang Power (00991) remained strong throughout the trading session, closing up 11.3% at HK$3.35.

A recent action plan released by four government bodies—the National Development and Reform Commission, the National Energy Administration, the Ministry of Industry and Information Technology, and the National Data Bureau—proposed exploring direct power supply for computing facilities from nuclear and hydrogen energy sources. The plan encourages the integration of grid-forming energy storage systems within computing facilities to enhance power stability and provide active support for the electrical grid.

Changfei Fiber Optic Cables (06869) hit a new high, closing up 5.45% at HK$259.4.

In a recent interview, NVIDIA CEO Jensen Huang stated that the next generation of artificial intelligence infrastructure will require extensive optical connections due to rapidly growing computational demands that copper wiring can no longer meet. Additionally, NVIDIA and Corning, a global fiber optics giant, jointly announced a multi-year commercial and technological partnership. This appears to signal that 'optical investments' are shifting from optical modules to backend transmission equipment like 'fiber optics.'

Nobikun (02635) experienced a significant decline, closing down 14.42% at HK$16.86.

The Shanghai and Shenzhen Stock Exchanges previously announced that, according to relevant regulations, Nobikun would be added to the list of eligible securities for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs starting from April 20. Market analysts noted that the stock had already seen notable gains driven by positive expectations before its inclusion. Following its formal addition, investors opted to exit at higher levels to lock in profits, reflecting strong profit-taking demand.

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