[Hong Kong Market Close] Mixed performance across the three major indices! Non-ferrous metals sector surges, while AI-related stocks undergo a collective correction

On July 2, the first trading day of July for Hong Kong stocks, the three major indices moved in mixed directions. The Hang Seng Index rose 0.76%, the Hang Seng China Enterprises Index gained 0.72%, and the Hang Seng Tech Index declined 0.4%.

By sector, rare earths, gold miners, and non-ferrous metals all rebounded collectively.。 $JLMAG (06680.HK)$ up 12.03%,$LINGBAO GOLD (03330.HK)$ up 10.41%, $CHIFENG GOLD (06693.HK)$ up 10.53%; Zijin Gold International (02259.HK) rose 6.55%, and Zhaojin Mining (01818.HK) gained 6.1%.

On the news front, Federal Reserve Chair Kevin Warsh stated that inflation expectations have moderated over the past month and reiterated that maintaining price stability remains the core policy objective. This commentary was broadly perceived as neutral to mildly dovish, leading markets to interpret it as signaling limited likelihood of near-term rate hikes. This reduced bets on further tightening and eased upward pressure on real interest rates, indirectly supporting gold prices. On the individual stock front, JL MAG Rare-Earth expects its net profit for the first half of the year to increase by 31.17%–50.84% year-on-year.

Pharmaceutical stocks rallied across the board, with innovative drug concepts, biopharmaceuticals, pharmaceutical outsourcing, and traditional Chinese medicine sectors all posting strong gains.Federal Pharma (03933.HK) rose 9.85%, Simcere Pharmaceutical (02096.HK) gained 9.54%, Junshi Biosciences (01877.HK) advanced 9.13%, CSPC Pharma (01093.HK) climbed 8.32%, Akeso (09926.HK) increased 7.67%, and RemeGen (09995.HK) rose 7.74%.

Guojin Securities noted that as domestic innovative drugmakers continue to enhance the global competitiveness of their clinical pipelines and as national health insurance policies and commercial insurance increasingly favor innovative drugs, many innovative biopharma companies are entering a period of earnings realization. Against the backdrop of strengthening global demand for innovative drug assets, China’s innovative drug sector currently exhibits a divergence between improving fundamentals and declining valuations, potentially offering high upside from a low valuation base. Separately, Junshi Biosciences signed an exclusive licensing agreement with Fosun Pharma and Wanbang for Nokori-ba monoclonal antibody, under which Junshi will receive an upfront payment of RMB 215 million, milestone payments of up to RMB 1.125 billion, and double-digit royalty rates—totaling over RMB 1.34 billion.

Within the broader consumer sector, sub-segments including pork-related stocks, automobiles, education, home appliances, baby products, new consumption concepts, sporting goods, beer, and holiday-themed plays also showed active performance.. Among them, Dekon Group (02419.HK) rose 13.97%, Perfect Medical (01830.HK) gained 10.19%, Muyuan Foods (02714.HK) climbed 9.99%, BYD Company (01211.HK) advanced 8.07%, Smoore International (06969.HK) increased 6.41%, Zhou Hei Ya (01458.HK) rose 5.04%, Xiaomi Group-W (01810.HK) gained 4.44%, while Midea Group (00300.HK) fell 4.12%. In news developments, interim results for the new energy vehicle market in 2026 have been released, showing steady improvement for most automakers, including BYD, Xiaomi, and Leapmotor.

Elsewhere, sectors such as paper stocks, heavy machinery, logistics, and oil & gas also posted gains to varying degrees.

On the downside, AI hardware-related segments—including memory concepts, PCBs, optical communications, semiconductor chips, and power semiconductors—led the declines.. Among them, Guanghe Technology (01989.HK) dropped 24.32%, Cambridge Technology (06166.HK) plunged 24.19%, Biren Technology (06082.HK) fell 21.05%, Kingsemi Microelectronics (09630.HK) tumbled 18.62%, GigaDevice (03986.HK) declined 18.39%, KB Coretec (01888.HK) slid 15.48%, and Han's CNC (03200.HK) lost 10.13%.

News reports indicated that Meta’s plan to monetize its computing capacity has sparked concerns over potential oversupply in AI computing power, triggering a sell-off in semiconductor stocks. Additionally, Samsung and SK Hynix are reportedly seeking price reductions from substrate suppliers in the second half of the year. Analysts noted that if these cuts materialize, they could entirely offset the price increases seen in the first quarter, effectively bringing prices back to their original levels.

The cooling sentiment around AI-related stocks also dragged down power-sector segments, including photovoltaic, wind power, green electricity, and electrical equipment.. Among them, Lens Technology (06613.HK) fell 7.73%, Jolywood (02865.HK) declined 5.98%, and Goldwind Science & Technology (02208.HK) dropped 5.42%.

Author: Bottles

85K Views