Hong Kong Stock Midday Review | The three major indices resonate and strengthen, with the Hang Seng Index soaring nearly 3%, driven by the AI ecosystem explosion, leading Baidu and Tencent to rise

Market Overview ▪ The three major indices of the Hong Kong stock market collectively strengthened by midday. ▪ The Hang Seng Index closed at 26,306.26 points at midday, up 1.38%, still some distance from the recent peak; ▪ The Hang Seng Tech Index saw the largest gains by midday, reporting 5,057.98 points, up 2.98%, continuing to show a rebound trend; ▪ The China Enterprises Index closed at 8,869.26 points at midday, up 1.73%, maintaining overall fluctuations within a range. Sector Performance ▪ The internet content sector rose overall during the session, driven by AI and innovative applications. Tencent Holdings increased by 2.81% during the session, with a midday trading volume reaching HKD 5.728 billion. The company released and open-sourced the Hongyuan 3D World Model 2.0, consolidating its leading position in the AI and virtual reality fields, which also boosted overall attention and valuation recovery expectations for the sector. Kuaishou rose by 2.32%, with active trading, as the optimization of equity and incentive structures, along with the cost reduction and efficiency improvement of AI micro-dramas, further stimulated market confidence in the content innovation ecosystem. ▪ The consumer electronics sector saw a slight increase, with sector rotation driving capital inflow. TCL Electronics rose by 1.70%, and Skyworth Group rose by 1.27%, with increased trading volumes for related companies, enhancing market speculation sentiment. ▪ The technology sector was driven by AI and cloud computing applications, with Baidu Group-SW rising by 8.38% during the session, and midday trading volume of HKD 1.24 billion, becoming a market focus. Dipu Technology surged by 19.43%, with a trading volume of HKD 1.799 billion, as short-term capital concentrated in the tech sector, rapidly boosting the market value of related stocks. Wallen Technology rose by 21.41%, Longpan Technology rose by 22.31%, Tiancheng Holdings rose by 43.81%, and Asia Internet Technology rose by 46.36%, with multiple points of growth within the industry, leading to a collective surge in the tech sector. ▪ Traditional consumer and home appliance stocks performed steadily, with internal structural differentiation within the sector. Skyworth Group rose by 1.27%, with the company's latest performance achieving a record high in revenue, but net profit declined, strategically splitting new businesses to respond to market changes. Macroeconomic Background ▪ Recently, there have been limited macroeconomic indicators released for the Hong Kong stock market, with investors focusing on dynamics related to import and export data. Industry cycle changes and external market risk transmission have become the main lines of speculation, with market risk appetite increasing during the session, and technology and popular growth stocks becoming the direction of concentrated capital inflow. Investors are advised to respond flexibly and seize structural opportunities. Popular Stocks ▪ Wallen Technology (6082.HK) rose by 21.41% during the session, with a trading volume of HKD 1.021 billion. Active capital inflow and the overall performance of the tech sector drove expectations for improved tech growth, benefiting its valuation. ▪ Longpan Technology (2465.HK) rose by 22.31% during the session, with a trading volume of HKD 653 million. Although there have been no significant news events recently, sector rotation and market capital have effectively boosted the company's stock price. ▪ Asia Internet Technology (679.HK) rose by 46.36% during the session, with a trading volume of HKD 33 million. Influenced by the heat of the tech sector, the stock price experienced significant fluctuations, with notable increases in capital attention during the session ▪ Difu Technology (1384.HK) rose 19.43% during the session, with a transaction volume of HKD 1.799 billion. The technology sector rotated that day, becoming one of the hotspots for capital attention. Short-term funds concentrated influx, driving the company's market value up. ▪ Tiancheng Holdings (2110.HK) rose 43.81% during the session, with a transaction volume of HKD 14 million. There was no obvious event catalyst, but significant fluctuations occurred during the session due to capital rotation. ▪ Jiurong Holdings (2358.HK) rose 18.18% during the session, with a transaction volume of HKD 2.7 million. Short-term funds concentrated inflow in the market, increasing the company's popularity in the short term, with noticeable volatility. Market Transaction Volume TOP10 ▪ Alibaba -W (9988.HK) latest transaction price HKD 134.50, up 4.59%, transaction volume HKD 7.74 billion ▪ Tencent Holdings (700.HK) latest transaction price HKD 513.00, up 2.81%, transaction volume HKD 5.73 billion ▪ Xiaomi Group -W (1810.HK) latest transaction price HKD 31.54, up 2.07%, transaction volume HKD 2.69 billion ▪ CATL (3750.HK) latest transaction price HKD 723.00, up 10.30%, transaction volume HKD 2.61 billion ▪ Pop Mart (9992.HK) latest transaction price HKD 167.00, up 2.27%, transaction volume HKD 2.33 billion ▪ Yangtze Optical Fibre and Cable (6869.HK) latest transaction price HKD 218.00, up 6.03%, transaction volume HKD 2.33 billion ▪ Meituan -W (3690.HK) latest transaction price HKD 88.50, up 2.55%, transaction volume HKD 1.94 billion ▪ BYD Company (1211.HK) latest transaction price HKD 112.20, up 4.57%, transaction volume HKD 1.87 billion ▪ Difu Technology (1384.HK) latest transaction price HKD 75.60, up 19.43%, transaction volume HKD 1.80 billion ▪ SMIC (981.HK) latest transaction price HKD 59.45, up 0.25%, transaction volume HKD 1.37 billion