The Hang Seng Index briefly turned negative in early trading but ended the day up 127 points. Oil prices surged as Middle Eastern tensions escalated and the Strait was blocked again, with resource stocks supporting the broader market. High-dividend ETFs continued to show solid performance—Fubon CSI-SSE-HK High Dividend ETF is worth watching.

Tensions in the Middle East flared up again, as the U.S. and Iran scrapped their previously signed memorandum of understanding and mutually reimposed blockades on the Strait of Hormuz. International oil prices jumped on the news, while gold prices softened in tandem. Meanwhile, the U.S. will release June CPI and core CPI data; markets expect inflationary pressures from Middle East tensions may lead to a modest slowdown in the pace of increase. China will announce its Q2 GDP and a series of June economic indicators tomorrow, with market expectations pointing to growth below the official full-year target. Hong Kong stocks experienced significant volatility today, initially following the broader Asia-Pacific market decline. The Hang Seng Index briefly fell below the 24,000 mark, plunging over 300 points at one point to an intraday low of 23,902. In the afternoon, South Korean equities rebounded strongly, helping narrow Hong Kong’s losses, which then turned into gains that expanded to over 100 points. The Hang Seng Index closed at 24,340, up 127 points or 0.5%, with total turnover of HK$312.9 billion. The Hang Seng China Enterprises Index ended at 8,103, up 37 points or 0.5%. The Hang Seng Tech Index closed at 4,679, gaining just 3 points, or less than 0.1%. Southbound capital recorded net inflows of RMB 11 billion.

South Korean semiconductor-related stocks saw significant volatility today. SK Hynix plunged more than 10% in the morning before stabilizing in the afternoon. Hong Kong-listed stocks followed suit, with AI hardware-related shares attracting strong capital interest in the afternoon session. Kingboard Chemical Holdings stood out notably, with Kingboard Laminates $KB LAMINATES (01888.HK)$ (1888) surging 14.2%, closing at HK$58.30; its parent company, Kingboard Group $KINGBOARD HLDG (00148.HK)$ (0148), also rose 8.84%, closing at HK$64.65. Memory-related stocks followed the upward trend, with Montage Technology $MONTAGE TECH (06809.HK)$ rising 8% to close at HK$358; GigaDevice $GIGADEVICE (03986.HK)$ rose 9.54% to close at HK$689; Yangtze Optical Fibre and Cable $YOFC (06869.HK)$ rose 10.16% to close at HK$153.9; Basic Semiconductor $BASICSEMI (09971.HK)$ (09971) rose 8.76% to close at HK$42.2. Reports indicate its products saw price hikes of up to 25%, and the company is a rare pure-play SiC power device stock. Among semiconductor chip stocks, SMIC $SMIC (00981.HK)$ (0981) was flat for the day, closing at HK$78.35; Hua Hong $HUA HONG GRACE (01347.HK)$ fell 0.46% to close at HK$171.5; Lenovo Group $LENOVO GROUP (00992.HK)$ (00992) edged down 0.6% to close at HK$23.16.

Internet and tech stocks were mixed, with Baidu $BIDU-SW (09888.HK)$ (09888): the listing timeline for its Kunlun AI chip unit remains unclear, and the share price plunged 7.26% to close at HK$106, making it the worst-performing blue-chip stock; related names such as ATMX traded flat today, while Tencent $TENCENT (00700.HK)$ (0700) dipped 0.31% to close at HK$456.2; Meituan $MEITUAN-W (03690.HK)$ (3690) rose 1.6% to close at HK$79.2; Xiaomi Group $XIAOMI-W (01810.HK)$ rose 0.77% to close at HK$26.04.

The Strait of Hormuz was blockaded again, driving resource stocks broadly higher. The aluminum sector stood out the most, with Aluminum Corporation of China $CHALCO (02600.HK)$ (02600) surging 9.59% to close at HK$8.23 after issuing a profit warning; the company forecasts its attributable net profit for the first half of the year to increase by 58% to 73% year-over-year, making it the best-performing blue-chip stock of the day; China Hongqiao $CHINAHONGQIAO (01378.HK)$ (1378) also rose 7.08% to close at HK$23; CMOC Group $CMOC (03993.HK)$ (03993) gained 7.34% to close at HK$15.95. Auto stocks also contributed to the market’s rebound, with Li Auto $LI AUTO-W (02015.HK)$ (2015) up 2.88% to close at HK$48.56; BYD Company $BYD COMPANY (01211.HK)$ (1211) rose 2.62% to close at HK$86.15.

International oil prices returned to the US$80 per barrel level, lifting all three major Chinese oil stocks. PetroChina $PETROCHINA (00857.HK)$ (00857) gained 3.46% to close at HK$9.57; Sinopec $SINOPEC CORP (00386.HK)$ (00386) rose 2.44% to close at HK$4.19; CNOOC $CNOOC (00883.HK)$ (0883) rose 2.43%, closing at HK$22.80. Oilfield services stocks also performed well, with Shandong Molong $SHANDONG MOLONG (00568.HK)$ (0568) gained 15.36%, closing at HK$6.31.

Boosted by gains in resource stocks and some traditional high-dividend sectors today, Fubon CSI 300 High Dividend ETF $Fubon Hang Seng Shanghai-Shenzhen-Hong Kong (Selected Corporations) High Dividend Yield Index ETF (03190.HK)$ (3190) also moved higher, closing at HK$16.00, up HK$0.15 or 0.946%. This ETF focuses on a high-dividend strategy across Shanghai, Shenzhen, and Hong Kong markets, with holdings primarily in mainland Chinese banks, real estate and construction, energy, and telecommunications—sectors traditionally known for stable dividends. Key holdings include Gree Electric Appliances, COSCO SHP SG, and several mainland Chinese bank stocks. The portfolio is well diversified, with individual stock weights generally ranging between 2.6% and 4.6%. Although Hong Kong stocks dropped sharply early in the day due to escalating tensions in the Middle East, rising oil prices lifted energy and resource-related stocks, which outperformed the broader market. Meanwhile, mainland Chinese bank stocks remained relatively stable, helping this high-dividend ETF maintain resilient performance amid overall market volatility. For investors seeking diversified exposure to high-yield assets across the Shanghai, Shenzhen, and Hong Kong markets without having to pick individual stocks, products like 3190 offer a convenient income-focused allocation solution. Given its core holdings in banks, telecoms, and energy firms—sectors typically offering stable dividends but limited price upside—this ETF is better suited for investors prioritizing steady cash flows, with moderate risk tolerance and a defensive investment stance.

@孫子的末代傳人 @中戶變大戶小牛變大牛 @股海GSO

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