Hang Seng Index rebounds with a 122-point gain after three straight losses; Tencent leads gains as oil and financial stocks strengthen; investors seeking high-dividend stocks may consider E Fund Asia Pacific High Dividend ETF

Global bond markets face intensifying sell-off pressure, with the yield on the U.S. 30-year Treasury hovering near its highest level since 2023. Major banks have warned that if long-term rates continue rising, equities could face their first meaningful correction since bottoming out in late March. U.S. stocks showed mixed performance overnight. However, Middle East tensions eased temporarily, as Trump postponed large-scale military strikes against Iran at the request of Qatar, Saudi Arabia, and the UAE to allow for a diplomatic window, slightly relieving market stress. After three consecutive declines, Hong Kong stocks staged a technical rebound today. The Hang Seng Index closed at 25,797, up 122 points or 0.48%, with total turnover reaching HK$272.1 billion. The Hang Seng Tech Index closed at 4,857, up 12 points or 0.26%. The Hang Seng China Enterprises Index closed at 8,639, up 41 points or 0.49%. Southbound capital recorded a net inflow of nearly RMB 1.3 billion.

Tencent ($TENCENT (00700.HK)$ became the market’s key pillar today. Its Tencent Cloud announced that its Hy3 Preview and DeepSeek-V4-Pro models will end their limited-time free public beta and transition to commercial services on May 27, while also launching an incentive program for developers. Combined with the company’s resumption of share buybacks, this drove its share price up by HK$10.8 or 2.4%, closing at HK$460; Baidu ($BIDU-SW (09888.HK)$ reported strong AI business revenue growth, and its share price rose 1.48% post-earnings to close at HK$136.7; management stated that the market potential of AI agents far exceeds that of token-based billing alone, and AI-driven revenue accounted for more than half of total revenue for the first time; among other tech and internet stocks, Alibaba ($BABA-W (09988.HK)$ rose HK$1.6 or 1.22%, closing at HK$133.3; Meituan ($MEITUAN-W (03690.HK)$ rose HK$0.9 or 1.1%, closing at HK$83.05; Kuaishou ($KUAISHOU-W (01024.HK)$ ) rose HK$0.20 or 0.41%, closing at HK$48.88; Xiaomi ($XIAOMI-W (01810.HK)$ ) dipped slightly by HK$0.02 or 0.07%, closing at HK$30.64. Its high-performance YU7 GT model set a new SUV lap record at the Nürburgring, boosting brand attention; NetEase ($NTES-S (09999.HK)$ ) rose HK$3.10 or 1.77%, closing at HK$178.20; Bilibili ($BILIBILI-W (09626.HK)$ ) gained HK$5.50 or 3.65% ahead of earnings, closing at HK$156.10; Tencent Music ($TME-SW (01698.HK)$ ) completed its acquisition of Himalaya, and its share price rose HK$1.70 or 4.86%, closing at HK$35.94.

Financial stocks were broadly stronger today. Standard Chartered ($STANCHART (02888.HK)$ ) announced a four-year ROTE target and signaled upcoming restructuring and layoffs, which was well received by the market, driving its share price up HK$4.60 or 2.34% to close at HK$201.20; Bank of China (Hong Kong) ($BOC HONG KONG (02388.HK)$ ) rose HK$0.84 or 1.82%, closing at HK$46.96, hitting a record high; HSBC ($HSBC HOLDINGS (00005.HK)$ ) gained HK$2.20 or 1.59%, closing at HK$140.30; Bank of China ($BANK OF CHINA (03988.HK)$ ) rose HK$0.06 or 1.15%, closing at HK$5.27; ICBC ($ICBC (01398.HK)$ ) rose HK$0.08 or 1.17%, closing at HK$6.93; CCB ($CCB (00939.HK)$ ) rose HK$0.09 or 1.03%, closing at HK$8.85.

With a brief easing of tensions in the Middle East, oil prices remain high, and energy stocks were notably strong against the broader market today. CNOOC ($CNOOC (00883.HK)$ ) rose HK$0.80 or 2.99%, closing at HK$27.56, marking the best-performing blue chip of the day; PetroChina ($PETROCHINA (00857.HK)$ ) rose HK$0.13 or 1.18%, closing at HK$11.12.

AI-related stocks saw significant pullbacks across the board today. Zhipu ($KNOWLEDGE ATLAS (02513.HK)$ ), MINIMAX ($MINIMAX-W (00100.HK)$ ) and XunCe ($XUNCE (03317.HK)$ ) all plunged sharply, with Zhipu falling HK$107 or 9.4%, closing at HK$1,030; MINIMAX ($MINIMAX-W (00100.HK)$ ) dropped HK$57.50 or 7.19%, closing at HK$742.50; XunCe ($XUNCE (03317.HK)$ ) fell HK$27 or 9.75%, closing at HK$250; SMIC ($SMIC (00981.HK)$ ) declined for the fifth consecutive day, dropping 0.29% today to close at HK$68.5, though Citi upgraded its rating on the same day, suggesting support for future prices; Hua Hong Semiconductor ($HUA HONG GRACE (01347.HK)$ ) rose HK$0.8 or 0.69%, closing at HK$116.6; Cambridge Technology ($CIG (06166.HK)$ ) turned positive in the afternoon, surging over 13% to close at HK$157, as reports indicated strong demand for the company's high-speed optical module orders and active progress in capacity expansion.

EV stocks continued to be sold off, with Li Auto ($LI AUTO-W (02015.HK)$ ) down HK$2.8 or 4.31%, closing at HK$62.1; Nio ($NIO-SW (09866.HK)$ ) dropped HK$2.26 or 4.75%, closing at HK$45.28; XPeng Motors ($XPENG-W (09868.HK)$ ) fell HK$2.15 or 3.55%, closing at HK$58.5; Leapmotor ($LEAPMOTOR (09863.HK)$ ) declined HK$0.24 or 0.58%, closing at HK$41.44. Reports indicated that Xiaomi Auto’s new vehicle does not use CATL ($CATL (03750.HK)$ ) batteries; CATL fell HK$14.5 or 2.15% today, closing at HK$660. In other stocks, JD Health ($JD HEALTH (06618.HK)$ ) dropped RMB 1.84 or 4.27%, closing at RMB 41.24; Zijin Mining ($ZIJIN MINING (02899.HK)$ ) fell by 1.02 or 2.96%, closing at RMB 33.4.

The three major telecom operators today successively launched AI Token packages. China Telecom ($CHINA TELECOM (00728.HK)$ ), China Mobile ($CHINA MOBILE (00941.HK)$ ) and China Unicom (0762.HK) all announced their entry into the AI computing power services market, marking a strategic shift in telecom operators’ business models from traditional communications to AI computing services. China Telecom ($CHINA TELECOM (00728.HK)$ ) rose RMB 0.04 or 0.71%, closing at RMB 5.68; China Mobile ($CHINA MOBILE (00941.HK)$ ) gained RMB 0.4 or 0.46%, closing at RMB 86.8; China Unicom ($CHINA UNICOM (00762.HK)$ ) increased by RMB 0.06 or 0.76%, closing at RMB 8.

After three consecutive days of losses, the Hang Seng Index saw a technical rebound. Many investors may switch to deploying dividend-paying stocks for defensive positioning. Attention can be given to E Fund High Dividend ETF ($E FUND (HK) MSCI Asia Pacific Select High Dividend Index ETF (03483.HK)$ ), which tracks the MSCI Asia Pacific Select High Dividend Yield Index, primarily investing in high-dividend stocks across the Asia-Pacific region. In addition to focusing on Chinese-listed equities, it also includes stocks from Japan and Australia, offering diversified exposure and greater stability compared to investing in individual stocks. Furthermore, the index’s constituents span various defensive sectors—including financials, industrials, energy, and materials—and feature leading companies such as PetroChina ($PETROCHINA (00857.HK)$ ), ICBC ($ICBC (01398.HK)$ ) and$COSCO SHIP HOLD (01919.HK)$ etc., with an average dividend yield of 6%. The ETF closed at HK$18.39 today, up HK$0.10 or 0.6%, making it more suitable for conservative long-term investors seeking stable dividends.

@孫子的末代傳人

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