Hong Kong Stocks Rally Led by Gold and Tech: Hang Seng and Tech Index Up Over 1%

Hong Kong's major stock indices posted broad gains on Monday (10th). By the close, the Hang Seng Index rose 1.05% to 25,937.49 points; the H-share Index gained 1.06% to 8,621.84 points; and the Hang Seng Tech Index climbed 1.26% to 4,919.46 points.

The gold and precious metals sector performed the strongest, driven by expectations of U.S. interest rate cuts, weakening employment data, and rising risk-aversion sentiment. Among individual stocks, Laofu Gold surged 12.39%, Chow Tai Fook rose over 6%, Long Resources jumped 12.42%, while Zijin Mining and Hanxin Gold also posted significant gains. Market analysts noted that the sector is shifting from being driven solely by gold prices to one where earnings and production volumes are being realized.

Technology and internet stocks also saw broad gains. Lenovo Group rose 3.20%, NIO-SW and JD Health gained nearly 3%, while Alibaba-W, BYD Company, and Xiaomi Group all rose over 2%. AI healthcare concepts performed strongly, with BioMao Biotech-B soaring 11.08% on expectations of substantial revenue and net profit growth, followed by gains in Insilico Medicine and XtalPi Holdings.

On the individual stock front, Guotai Junan International stood out, closing up 36.78%, primarily due to Guotai Haitong's proposal to privatize the company at HK$3 per share. In contrast, optical communication stocks declined collectively, with Zhongji Xuchuang plunging 6.94% and Cambridge Technology down 4.37%, mainly due to rumors of external export restrictions and profit-taking. Storage-related stocks also weakened amid volatility in South Korea’s memory sector.

Looking ahead, CICC believes positive factors in fundamentals, valuations, and the external environment are accumulating. As policy and capital work together to stabilize the market, a steady upward trend may continue. Guotai Haitong noted that China's PPI is mainly driven by international oil prices, expecting possible short-term rebound pressure in August to September, but a potential decline in Q4 due to base effects. The firm warned that domestic demand remains weak and production is slowing, highlighting the risk of demand recovery falling short of expectations.