Post-Market Hong Kong Stocks: July Closes with Over 13% Rise in Hang Seng Index, AI and Memory Chips Perform Strongly on Friday

Hong Kong's stock market officially concluded trading for July 2026. On the last trading day of July, the Hang Seng Index turned red in the late session, rising 0.10%, and closed at 25,884.43 points. The Hang Seng Tech Index once rose by 1.4% intraday but later retreated from its highs, finally closing up 0.53% at 4,829.22 points. The H-Shares Index performed relatively weakly, closing down 0.38% at 8,612.15 points.

Major indices performed brightly for the month, with the Hang Seng Index rising over 13% for the month, the H-Shares Index also rising over 13%, and the Hang Seng Tech Index rising nearly 8% for the month.

On Friday's trading, the memory chip sector became the market focus, showing a "violent rebound" situation. Stimulated by the surge in overseas chip stocks, Southbound 2x leveraged Hynix surged over 67%, and Southbound 2x leveraged Samsung also surged over 49%. In addition, the PCB concept and optical communication sectors performed strongly, with Grandway Technology rising over 20%, and Lenovo Group rising nearly 10%.

However, the performance of large tech stocks was clearly divided. Alibaba rose 4.65%, and Baidu Group rose over 3%; in contrast, Xiaomi Group was heavily affected by the decline in new consumption concepts, falling over 7%, and JD.com also fell over 1%. Traditional sectors such as banking, real estate, oil, and beer stocks collectively retreated, with AB InBev Asia Pacific falling over 6%, and the "ABCDE" five major banks falling one after another after hitting new highs.

Regarding the outlook for Hong Kong stocks, the market generally holds an optimistic attitude. The Politburo meeting released strong signals of stabilizing growth, expanding domestic demand, and boosting market confidence. Analysis pointed out that the meeting emphasized increasing the intensity of counter-cyclical adjustment, which will help alleviate investors' concerns about market volatility and support overall market sentiment.

In terms of industry allocation, CITIC Securities believes that the fundamentals of the semiconductor equipment, domestic computing, and storage industry chain are strong, and some high-quality stocks have entered the "valuation trough," which is expected to welcome a dual recovery of performance and valuation. In addition, future policy priorities will focus on frontier fields such as 6G, computing networks, and embodied intelligence, which are expected to drive the expansion of trillion-level industrial markets. With the implementation of consumption-promoting policies, sectors benefiting from expanded domestic demand, as well as financial sectors with defensive attributes, are still worth noting.