Market Overview
▪ During intraday trading in Hong Kong stocks, the three major indices continued to weaken, while market turnover remained active;
▪ The Hang Seng Index closed at 25,567.790 points, down 1.52%;
▪ The Hang Seng Tech Index closed at 4,833.630 points, down 2.18%;
▪ The Hang Seng China Enterprises Index closed at 8,562.910 points, down 1.47%.
Sector Performance and Hot Stocks
New Energy Vehicle Sector Plunges, Li Auto Leads Decline
▪ Li Auto-W (02015.HK) plunged 11.11% to HK$67.2, with turnover exceeding HK$1.3 billion; Leapmotor (09863.HK) fell 9.91%;
▪ Geely Automobile (00175.HK) dropped 4.90%, and BYD Company (01211.HK) fell 3.73%.
Semiconductor Sector Bucks the Trend as Industry Prosperity Rises
▪ GigaDevice (03986.HK) surged 9.93% to HK$598, with turnover exceeding HK$1.2 billion; Hua Hong Semiconductor (01347.HK) rose 3.45%; Montage Technology (06809.HK) gained 3.83%; SMIC (00981.HK) edged up 0.28%.
▪ PCB leader Shenghong Technology (02476.HK) rose 8.82%. The company was recently added to the Stock Connect list and is regarded as a core supplier to NVIDIA.
AI Concept Stocks Active Against the Trend, Edge Computing and World Models in Demand
▪ 51World (06651.HK) skyrocketed 17.50% to HK$58.75. The company received public backing from Justin Sun for the physical AI track, with its &#34;physical intuition&#34; world model expected to drive strong revenue growth;
▪ Zhipu AI (02513.HK) rose 7.88%, and Xunce (03317.HK) gained 4.07%.
Tech Giants and Real Estate Stocks Under Pressure
▪ Alibaba-W (09988.HK) fell 2.04%, Kuaishou-W (01024.HK) dropped 2.51%, Tencent Holdings (00700.HK) declined 1.14%, and Meituan-W (03690.HK) fell 1.09%.
▪ Real estate stocks weakened, with China Resources Land (01109.HK) down 4.88% and Sun Hung Kai Properties (00016.HK) falling 3.79%.
Macro Background
▪ Declining Macro Data: China's total retail sales of consumer goods for January-April grew by 1.9% year-on-year, announced today, a significant decline from the previous figure, raising market concerns about the pace of recovery in discretionary consumption sectors such as automobiles.
▪ Geopolitical Tensions and Overseas Disruptions: Escalating tensions between the US and Iran pushed up international oil prices, not only increasing concerns about potential substitution costs for new energy vehicles but also triggering comprehensive risk-aversion sentiment in the Asia-Pacific market (the Korea Composite Stock Price Index plunged over 4.5% intraday, and spot gold fell below the $4,500 mark).
▪ AI Industry Catalysts: The Google I/O 2026 Developer Conference is about to open, with market expectations for the release of major products such as Gemini 3.0 and AI glasses, boosting short-term speculative sentiment for edge AI; meanwhile, TSMC's advancement of Co-Packaged Optics (CPO) solutions and strong demand for AI copper-clad laminates provided solid performance and logical support for the semiconductor hardware sector.
Top 10 Market Turnover
▪ Tracker Fund of Hong Kong (02800.HK) Latest price HK$25.82, down 1.15%, turnover HK$3.9 billion
▪ Tencent Holdings (00700.HK) Latest price HK$451.20, down 1.14%, turnover HK$3.5 billion
▪ Alibaba-W (09988.HK) Latest price HK$129.60, down 2.04%, turnover HK$3.1 billion
▪ SMIC (00981.HK) Latest price HK$71.35, up 0.28%, turnover HK$2.3 billion
▪ CSOP Two Times Leveraged SK Hynix (07709.HK) Latest price HK$92.28, up 1.50%, turnover HK$2.2 billion
▪ Li Auto-W (02015.HK) Latest price HK$67.20, down 11.11%, turnover HK$1.3 billion
▪ Hua Hong Semiconductor (01347.HK) Latest price HK$119.90, up 3.45%, turnover HK$1.3 billion
▪ GigaDevice (03986.HK) Latest price HK$598.00, up 9.93%, turnover HK$1.2 billion
▪ Yangtze Optical Fibre and Cable (06869.HK) Latest price HK$230.80, up 3.50%, turnover HK$1.2 billion
▪ Xiaomi Corporation-W (01810.HK) Latest price HK$30.20, down 1.63%, turnover HK$1.1 billion

02015

06651

During intraday trading on May 18, Hong Kong stocks opened lower and continued to decline due to escalating geopolitical tensions and a sharp drop in US stocks overnight, with the Hang Seng Tech Index plunging over 2%. Declining domestic macro consumption data put pressure on automotive consumption expectations, leading to a severe slump in the new energy vehicle sector, with Li Auto plummeting over 11%; large-cap tech stocks and real estate shares generally weakened. On the other hand, driven by rising prosperity in the industrial chain and expectations from overseas tech conferences, semiconductor stocks and AI application concept stocks bucked the trend, with GigaDevice surging nearly 10% and 51World soaring over 17%

- The Hong Kong stock market experienced a decline, with the Hang Seng Index dropping 1.52% to 25,567.79 points.  
- Major electric vehicle stocks, like Li Auto, fell significantly, while the semiconductor sector showed resilience, with stocks like Zhaoyi Innovation rising nearly 10%.  
- Macroeconomic data indicated a slowdown in retail sales, raising concerns over recovery prospects, while geopolitical tensions affected overall market sentiment.

Market Pulse

LI AUTO-W

51WORLD

Hong Kong Stocks Intraday: Three Major Indices Continue to Weaken, New Energy Vehicles Suffer Heavy Losses, Semiconductors and AI Concepts Buck the Trend