Hong Kong Market: Hang Seng Index Drops 0.7%, Semiconductor Sector Defies Trend with Strong Gains

Hong Kong's major indices showed divergent performance on Thursday (9th). The Hang Seng Index initially rose but retreated in the afternoon, closing down 0.70% at 24,030.18 points. The Hang Seng Tech Index edged up 0.01% to 4,731.56, while the H-share Index fell 1.08%. Total market turnover surged to HK$377.25 billion.

The semiconductor and memory sectors emerged as the day's top performers, rallying collectively. Semiconductor Manufacturing International Corporation (SMIC) jumped 10.22%, Hua Hong Semiconductor rose over 8%, and Lenovo Group gained 7.7%. Memory-related stocks were even stronger: GigaDevice surged 21.75%, and Montage Technology climbed 19.4%. The rally was driven by the convergence of AI computing demand and expectations for domestic semiconductor substitution, further amplified by ChangXin Memory Technologies launching its largest A-share IPO since 2026, triggering asset revaluation across the semiconductor supply chain.

In contrast, airline and automotive stocks underperformed. Escalating geopolitical tensions prompted the EU to advise airlines to avoid Middle Eastern airspace, while oil prices spiked 7% on war risks, sharply increasing carriers' operating costs. As a result, Air China dropped nearly 7%. Auto stocks were pressured by a 23.2% year-on-year decline in June's passenger vehicle retail sales, with NIO and Geely Automobile both falling over 4%. Additionally, tea beverage概念股 such as Guming and Mixue Group declined collectively due to intensified competition in a saturated market.

On the IPO and individual stock front, Qiyunshan Foods surged 162.5% on its debut. However, RIGOL Precision plunged 37.4% on its first day in the Stock Connect program, and MINIMAX-W dropped about 18% on its first day of share unlock.

Looking ahead, Huatai Securities expects July’s Hong Kong market to shift from extreme structural trends toward a more balanced 'offense-defense' posture. Capital is expected to continue focusing on sectors showing signs of recovery and earnings visibility. Express logistics within transportation, which have strong mid-year report visibility, and highway stocks with defensive appeal due to high dividend yields, are worth watching.

Guolian Minsheng Securities noted that ChangXin’s IPO will act as a catalyst for order realization across the domestic semiconductor supply chain. The semiconductor industry’s expansion wave will sequentially unfold across equipment, components, and materials. Huatai Securities highlighted glass substrate development, viewing it as a key material for next-generation AI hardware, particularly in advanced packaging, with substantial long-term market potential.