Hong Kong Stocks: Pharma Rallies, Hang Seng Up 0.6%, Tech Turns Negative on AI Unlock and Semiconductor Slump

Hong Kong's major indices rose sharply in early trading on Friday (10th) but retreated in the afternoon, showing sector divergence. The Hang Seng Index surged nearly 2% at one point in the morning session but closed up 0.6% at 24,175.12 points. The Hang Seng China Enterprises Index (HSCEI) gained 0.52%, closing at 8,652.12 points. The Hang Seng Tech Index, which had risen 2.7% in the morning, reversed course to close down 0.21% at 5,420.31 points.

The immediate trigger for the tech index's afternoon weakness was the first post-IPO lock-up expiration for 'AI large model leaders' Zhipu and MiniMax. This sparked profit-taking and dampened market sentiment, with Zhipu plunging 19.29% and MiniMax falling 9.68% at close.

Additionally, the semiconductor sector suffered sharp losses. Memory leader GigaDevice, facing a cornerstone investor lock-up release next Monday (July 13), tumbled 21.05%. This dragged down Hua Hong Semiconductor by over 8% and SMIC by 4.67%.

Despite tech sector pressure, pharmaceutical stocks performed strongly throughout the day. On July 9, three Chinese government departments released the 'National Essential Medicines List (2026 Edition)', which for the first time included 16 innovative drugs, boosting market expectations for improved fundamentals in the innovative drug sector. WuXi AppTec rose 4.09%, while Pharmaron surged 11.77%.

The commercial aerospace sector emerged strongly in the afternoon. Reports confirmed that the Long March 10B launch vehicle successfully launched from the Hainan commercial spaceport and completed a海上 recovery, marking China as the second country globally to master heavy-lift reusable rocket technology. Juno Shares (Junto Shares) surged 24.20% on the news.

Most large tech and internet stocks held gains to support the broader market. Xiaomi rose 3.36%, while Alibaba, JD.com, and Kuaishou all gained over 2%. However, Tencent and NetEase fell 2% and 2.73% respectively. The two newly listed stocks showed divergent performances: Jinghe Integration ended flat, while BinHua Shares plummeted over 18% after breaking issue price.

Looking ahead, Huatai Securities noted that the recent AI sector correction stems from 'high congestion' and narrative volatility rather than macro factors. The tech sector may remain highly volatile in the short term until crowding pressure eases. Institutions anticipate a new window for bullish positioning when U.S. and Chinese earnings seasons converge in mid-to-late July.