I'm LongbridgeAI, I can summarize articles.Hang Seng was little changed while the Hang Seng TECH Index fell 1.39%. Xiaomi rallied over 6% after Barclays called its AI strategy "severely undervalued," Baidu slumped nearly 13%, and Hua Hong Semiconductor sank over 13%.
Hong Kong's three major indexes diverged in midday trading on August 19. The Hang Seng Index was nearly flat at 25,471.74 points, with turnover of approximately HK$174.8 billion. The Hang Seng TECH Index fell 1.39% to 4,673.54 points, while the HSCEI edged up 0.30% to 8,478.56 points.
On the stock front, Xiaomi surged over 6% after Barclays highlighted its undervalued AI strategy, while Baidu led tech losers with a nearly 13% plunge. The semiconductor sector suffered a broad sell-off — Hua Hong Semiconductor tumbled over 13% and SMIC dropped nearly 6%. Mainland banks and insurers bucked the trend, with ICBC and Bank of China both rising close to 2%.
Xiaomi Jumps Over 6% as Barclays Says AI Strategy "Severely Undervalued"
As of the latest update, Xiaomi Corp-W (01810.HK) surged over 6% to HK$27.76, with turnover exceeding HK$7.2 billion, making it one of the most actively traded stocks in the session. Meituan-W (03690.HK) gained over 2% to HK$87.60, while Tencent Holdings (00700.HK) rose over 1% to HK$448.40.
In a newly released report, Barclays argued that Xiaomi's AI strategy is "severely undervalued" by the market — its hardware ecosystem spanning smartphones, home appliances and electric vehicles is building a differentiated AI matrix, yet this strategic value is barely priced into the stock. The bank maintained an Overweight rating with a target price of US$30, implying an 82% upside from current levels. Separately, Xiaomi's EV deliveries have exceeded expectations and its smartphone average selling price hit a record high.
Baidu Plunges Nearly 13%; Semiconductor Stocks Tumble Across the Board
As of the latest update, Baidu Group-SW (09888.HK) slumped nearly 13% to HK$88.20, with turnover of over HK$2.2 billion. In the semiconductor sector, Hua Hong Semiconductor (01347.HK) sank over 13% to HK$111.70 on turnover of more than HK$7.2 billion, while SMIC (00981.HK) dropped nearly 6% to HK$71.35 with turnover surpassing HK$7.8 billion.
Risk-off sentiment swept across Asia-Pacific markets, with Samsung Electronics and SK Hynix both plunging over 7% in Seoul, where the KOSPI tumbled roughly 6% to lead regional losses. In A-shares, the semiconductor and AI hardware supply chain underwent a sharp correction, led by PCB, CPO and memory-related names. Additionally, Cerebras Systems unveiled its new CS-4 computer, claiming AI generation speeds several times faster than Nvidia's hardware, intensifying the competitive dynamics in AI hardware.
Mainland Banks and Insurers Buck the Trend; ICBC and Bank of China Rise Nearly 2%
As of the latest update, Industrial and Commercial Bank of China (01398.HK) rose nearly 2% to HK$7.40; Bank of China (03988.HK) gained nearly 2% to HK$5.42; China Merchants Bank (03968.HK) advanced nearly 2% to HK$48.80. Among insurers, Ping An Insurance (02318.HK) edged higher to HK$54.05, while China Life Insurance (02628.HK) inched up to HK$26.98.
Banking stocks were also active in the A-share market, standing out as one of the few sectors in positive territory. Invesco strategists noted that persistently rising long-term US interest rates are reducing the need for further Federal Reserve rate hikes, with the bond market effectively tightening financial conditions.
Elsewhere, gold and resources stocks broadly declined — Zijin Mining Group (02899.HK) fell over 2% and CMOC Group (03993.HK) dropped nearly 4%. The new energy vehicle sector saw mild adjustments, with XPeng-W (09868.HK) down over 3% and BYD Company (01211.HK) slightly lower. CNOOC (00883.HK) edged up to HK$24.56.