Market Overview
▪ Affected by fluctuations in overseas technology stocks and risk aversion, the three major indices fell sharply;
▪ The Hang Seng Index closed at 26,393.71 points, down 0.87%;
▪ The Hang Seng TECH Index closed at 5,102.79 points, down 0.36%;
▪ The National Enterprises Index closed at 8,889.07 points, down 0.34%.
Sector Performance and Hot Stocks
The semiconductor sector collectively plummeted, with concerns over TSMC's slowing revenue growth
▪ Hua Hong Semiconductor (01347.HK) fell 7.99% to HKD 130.1; SMIC (00981.HK) fell 4.10% to HKD 73.6;
▪ Zhaoyi Innovation (03986.HK) fell 5.19%; Ganfeng Lithium (01772.HK) fell 6.57%;
▪ Overnight, major U.S. chip giants like ARM saw significant declines, dragging down sector sentiment, coupled with TSMC's month-on-month revenue decline in April, raising market concerns about marginal changes in AI chip demand, leading to strong willingness among profit-taking funds to exit.
AI application concepts surged against the trend, with funds shifting from &#34;hardware&#34; to &#34;algorithm monetization&#34;
▪ Meitu (01357.HK) surged 12.71% to HKD 5.32; Kuaishou-W (01024.HK) rose 9.71% to HKD 53.1; Baidu Group-SW (09888.HK) rose 5.61%;
▪ With the implementation of AI generation tools for short videos and the profitability of image AI applications improving, the market's focus on the AI industry chain has shifted towards the application layer, leading to significant trading volumes in related leading stocks.
PCB and optical communication sectors strengthened, deepening global semiconductor industry cooperation
▪ Changfei Fiber Optic Cable (06869.HK) rose 5.67% to HKD 246.0; Kingboard Laminates (01888.HK) rose 5.05%; Cambridge Technology (06166.HK) rose 3.16%;
▪ Sony and TSMC deepened their chip joint venture cooperation, boosting market optimism regarding demand for upstream PCB and optical communication connection devices, with related sectors showing strong resilience.
Risk aversion boosted gold resource stocks, while financial heavyweights performed poorly
▪ Zijin Mining International (02259.HK) rose 2.68%; Luoyang Molybdenum (03993.HK) rose 2.39%; Health 160 (02656.HK) surged nearly 45% on its first day;
▪ Geopolitical tensions combined with continued net inflows into gold ETFs supported the strength of resource stocks; meanwhile, high interest rate expectations from the Federal Reserve and risk aversion caused financial heavyweights like HSBC and AIA to collectively decline.
Macroeconomic Background
▪ Liquidity and interest rate suppression: With the April non-farm payroll data about to be released, the market expects new job additions to remain low but wage growth to be strong, reinforcing expectations that the Federal Reserve will maintain high interest rates this year, directly suppressing financial and large internet heavyweight stocks sensitive to the discount rate of Hong Kong stocks.
▪ Geopolitical tensions disrupt global markets: Direct regional conflicts have caused fluctuations in oil and gold prices, with rising risk aversion prompting funds to shift from growth stocks to safe-haven assets (gold, resources)
▪ Differentiation in industrial investment enthusiasm: Although there has been an adjustment in the hardware sector, giants like NVIDIA continue to sign large AI cloud computing contracts, indicating that the focus of industrial investment is undergoing a structural shift from basic computing power to high-value applications and infrastructure.
Market Transaction Amount TOP10
▪ Yingfu Fund (02800.HK) latest transaction price HKD 26.54, down 0.82%, transaction amount HKD 13.90 billion
▪ Tencent Holdings (00700.HK) latest transaction price HKD 472.80, down 0.96%, transaction amount HKD 10.80 billion
▪ CSOP HS TECH (03033.HK) latest transaction price HKD 4.998, down 0.24%, transaction amount HKD 10.80 billion
▪ Hang Seng China Enterprises (02828.HK) latest transaction price HKD 91.22, down 0.20%, transaction amount HKD 9.20 billion
▪ Kuaishou-W (01024.HK) latest transaction price HKD 53.10, up 9.71%, transaction amount HKD 8.60 billion
▪ SMIC (00981.HK) latest transaction price HKD 73.60, down 4.10%, transaction amount HKD 7.60 billion
▪ Alibaba-W (09988.HK) latest transaction price HKD 139.10, down 1.28%, transaction amount HKD 7.50 billion
▪ Hua Hong Semiconductor (01347.HK) latest transaction price HKD 130.10, down 7.99%, transaction amount HKD 7.00 billion
▪ Pop Mart (09992.HK) latest transaction price HKD 167.90, up 3.51%, transaction amount HKD 7.00 billion
▪ XL II CSOP Hynix (07709.HK) latest transaction price HKD 78.46, up 2.06%, transaction amount HKD 5.20 billion

STECH

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513180

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On May 8th, the Hong Kong stock market weakened under multiple pressures, including a sharp decline in overnight U.S. chip stocks and geopolitical tensions. Although the semiconductor sector and financial heavyweight stocks performed poorly, dragging the Hang Seng Index down by 0.87% to 26,393.71 points, there were significant structural opportunities in the market. The overall market was unusually active, with the Tracker Fund of Hong Kong (02800.HK) leading with a transaction volume of HKD 13.9 billion. Funds showed a clear "high-low switch" trend, flowing from the hardware sector into the revalued AI application sector, driving Meitu Inc. up by 12.71% and Kuaishou-W rising by 9.71%. Additionally, the optical communication sector demonstrated resilience due to deepened industrial cooperation, while gold resource stocks gently rose, supported by geopolitical risk aversion and continued inflows into global ETFs (USD 6.6 billion in April). Overall, the market is in a sensitive period ahead of the U.S. non-farm payroll data release, with funds gathering towards more certain AI applications and safe-haven assets amid a weak market structure

Market Pulse

Hang Seng TECH Index

Hang Seng Index

Dacheng Hang Seng Technology ETF(QDII)

CSOP HS TECH

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

ChinaAMC Hang Seng Technology ETF(QDII)

Hang Seng TECH ETF I

Hang Seng China Enterprises Index

TRACKER FUND

HUA HONG SEMI

Hua Hong

SMIC

MEITU

KUAISHOU-W

BIDU-SW

Baidu

YOFC

GIGADEVICE

GANFENGLITHIUM

Ganfeng Lithium

XL2CSOPSMSN

Taiwan Semiconductor

POP MART

NVIDIA

IREN

KB LAMINATES

Montage Technology

MONTAGE TECH

Sony

Sony Group Corporation

HSBC HOLDINGS

HSBC

HKEX

TENCENT

BABA-W

Alibaba

ZIJIN GOLD INTL

CMOC

ZIJIN MINING

Zijin Mining

CHINAHONGQIAO

JIANGXI COPPER

JCCL

160 HEALTH

HSCEI ETF

XL2CSOPHYNIX

SMIC HK SDR 5to1

KUAISHOU-WR

BIDU-SWR

POP MART HK SDR 20to1

NVIDIA Corporation

HSBC 5xShortSG241213

HSBC Holdings Plc

AIA-R

AIA Group

HKEX-R

Hong Kong Exchanges and Clearing (HKEX)

Tencent

TENCENT-R

Tencent HK SDR 10to1

Tencent Holdings Limited

BABA-WR

Alibaba HK SDR 5to1

Hong Kong stocks closed | Three major indices fluctuated and closed lower, semiconductor sector plummeted, AI applications strengthened against the trend