Hong Kong Stocks: Education Stocks Rise, Tech Stocks Fall

Hong Kong stocks fluctuated within a narrow range on Thursday, with major indices showing mixed performance. By the close, the Hang Seng Index rose slightly by 0.2% to 25858.88 points; the Hang Seng Tech Index fell by 1.25% to 4803.77 points; the HSCI and Red Chip Index rose by 0.25% and 0.47% respectively.

The education sector became the focus of the market today. Benefiting from strong performance of leading companies, New Oriental - S surged by 18.84% throughout the day. According to the financial report, New Oriental's net profit for the fourth quarter of fiscal year 2026 increased by 775.8% year-on-year to $622 million, with annual net revenue reaching $5.661 billion. Institutional analysis believes that the recovery of profitability and strong growth guidance of leading education companies have driven the market to re-evaluate the industry's economic conditions.

In contrast, the AI hardware chain, chip, and optical communication sectors collectively declined. Due to the significant drop of 5.33% in the Philadelphia Semiconductor Index overnight and concerns about "crowded trading" in AI hardware, related stocks were under heavy pressure. Hua Hong Semiconductor fell by 8.26%, and SMIC fell by 7.74%.

In the optical communication sector, Longfly Optical Fiber and Cable fell by more than 10%; today, Zhongji Xuchuang, which officially listed on the Hong Kong Stock Exchange and refreshed the fundraising record for the year, was under pressure at the opening, falling by 2.04% on the first day and breaking the issue price.

The energy and traditional financial sectors performed relatively firmly. Supported by the escalation of the Middle East situation, CNOOC rose by 2.89%. In terms of corporate performance, Standard Chartered's first-half operating income hit a new high, with pre-tax profit reaching $4.8 billion; Fosun International released profit guidance, expecting first-half profit to grow by approximately 127% year-on-year to 172%.

CITIC Securities analysis pointed out that Hong Kong stocks are becoming a major beneficiary of global capital rebalancing. As the crowded trading in the AI hardware chain continues to be cleared, Hong Kong stocks, which have significant valuation advantages and improved micro-structures, are attracting profit-seeking funds to reallocate.