Hong Kong Market: Hang Seng Index Slightly Down 0.17% as Lenovo Soars 20% on Strong Earnings to Record High

Hong Kong's stock market traded in a narrow range on Thursday (13th). By the close, the Hang Seng Index had slightly declined by 0.17%, closing at 25,396.51 points; the Hang Seng Tech Index edged up 0.33% to 4,792.39 points; and the H-share Index fell 0.23%. Total market turnover significantly increased to HK$263.71 billion, up from HK$216.78 billion on the previous trading day.

Lenovo Group emerged as the market's focal point, with its share price soaring 20.18% at closing—leading tech stocks and setting a new all-time high, surpassing a market capitalization of HK$430 billion. The surge was primarily driven by strong financial results: first-quarter adjusted net profit jumped 176% year-on-year to $1.075 billion, exceeding the $1 billion mark for the first time. Additionally, its AI server order backlog reached $54 billion, indicating that its hybrid AI strategy has entered a phase of value realization.

In contrast, other large tech stocks showed mixed performance. Tencent Holdings faced post-earnings pressure, closing down 4.46%, with its market cap briefly dipping below HK$4 trillion. Alibaba, Xiaomi, and Meituan also recorded losses. However, semiconductor and optical communication sectors remained relatively resilient, with Cambridge Industries rising 6.61%.

Other sectors saw declines. Gold-related stocks fell collectively, with Lingbao Gold dropping over 9%. Despite U.S. July CPI rising 3.4% year-on-year—meeting expectations—the lack of positive surprises caused gold prices to break below the $4,400 threshold. Mainland property stocks weakened too, with Shimao Group falling over 8%, mainly due to the traditionally slow home sales season in August, as investors remain cautious about a potential recovery in Q4.

Looking ahead, China International Capital Corporation (CICC) noted that while the Hang Seng Index’s valuation has rebounded toward its 10-year average, the Hang Seng Tech Index remains undervalued. The market will increasingly focus on the commercial progress of AI technologies in physical environments and robotics applications.