Market Overview
▪ The Hong Kong stock market closed mixed at midday, with the three major indices showing a fluctuating and divergent trend;
▪ The Hang Seng Index closed at 26,486.63 points, up 0.30%;
▪ The Hang Seng China Enterprises Index closed at 8,915.86 points, up 0.36%;
▪ The Hang Seng Tech Index closed at 5,086.61 points, down 0.39%.
Sector Performance and Hot Stocks
Kuaishou surges leading blue chips, AI business spin-off releases valuation potential
▪ Kuaishou-W (01024.HK) rose 3.78% to HKD 53.55, with half-day trading volume reaching HKD 6.36 billion. Reports indicate that its self-developed video generation model &#34;KeLing AI&#34; plans to spin off and list independently, which the market believes will help unlock the valuation potential of its AI business.
Optical communication and resource stocks remain active, Nvidia boosts industry chain catalyst
▪ The optical communication sector was boosted by Nvidia's partnership agreement with Corning (GLW.US). Yangtze Optical Fibre and Cable (06869.HK) rose 4.09% to HKD 270.
▪ Resource stocks generally strengthened, with PetroChina (00857.HK) up 4.79%, Jiangxi Copper (00358.HK) up 2.95%, and Zijin Mining (02899.HK) up 2.44%.
Semiconductor sector collectively retreats, market risk aversion rises
▪ Previously leading semiconductor stocks faced collective profit-taking. Hua Hong Semiconductor (01347.HK) fell 3.73% to HKD 129; SMIC (00981.HK) fell 2.81% to HKD 74.45.
▪ Additionally, GigaDevice (03986.HK) fell 4.25%, and Shenghong Technology (02476.HK) fell 4.38%.
Domestic bank stocks steadily rise supporting the market
▪ Domestic bank stocks performed steadily at midday, with Bank of China (03988.HK) up 1.16%, China Construction Bank (00939.HK) up 1.13%, and Industrial and Commercial Bank of China (01398.HK) up 1.0%.
Macroeconomic Background
▪ Tech stock bubble warning: Goldman Sachs partners and some Wall Street bears pointed out that the current AI-driven tech stock surge is highly similar to the period just before the 2000 internet bubble burst, with production signals indicating that the market may need to pause in the short term.
▪ Geopolitical and emotional disturbances: Nvidia (NVDA.US) CEO Jensen Huang's absence from his visit to China has raised market concerns about the semiconductor supply chain and the outlook for the Chinese market.
▪ Inflation data expectations: The U.S. April CPI data, set to be released this week, is expected to rise 3.8% year-on-year. If the data exceeds expectations, it may further disrupt market liquidity expectations.
Top 10 Market Trading Volumes
▪ Tracker Fund of Hong Kong (02800.HK) latest trading price HKD 26.64, up 0.38%, trading volume HKD 6.68 billion
▪ Kuaishou-W (01024.HK) latest trading price HKD 53.55, up 3.78%, trading volume HKD 6.36 billion
▪ Tencent Holdings (00700.HK) latest trading price HKD 462.60, down 0.39%, trading volume HKD 5.72 billion
▪ XL II Southern Hynix (07709.HK) latest transaction price HKD 96.02, down 1.01%, transaction amount HKD 5.07 billion
▪ Alibaba-W (09988.HK) latest transaction price HKD 134.10, up 0.15%, transaction amount HKD 4.33 billion
▪ SMIC (00981.HK) latest transaction price HKD 74.45, down 2.81%, transaction amount HKD 3.94 billion
▪ Southern Hang Seng Technology (03033.HK) latest transaction price HKD 4.978, down 0.40%, transaction amount HKD 3.29 billion
▪ Yangtze Optical Fibre and Cable (06869.HK) latest transaction price HKD 270.00, up 4.09%, transaction amount HKD 3.26 billion
▪ Hua Hong Semiconductor (01347.HK) latest transaction price HKD 129.00, down 3.73%, transaction amount HKD 2.71 billion
▪ XL II Southern Samsung (07747.HK) latest transaction price HKD 139.80, down 4.96%, transaction amount HKD 2.41 billion

01024

06869

On May 12th, the Hong Kong stock market closed at noon, showing a significant structural differentiation pattern. The Hang Seng Index and the Hang Seng China Enterprises Index both rose slightly, while the Hang Seng Tech Index fell slightly due to the drag from heavyweight stocks. Kuaishou surged nearly 4% in half a day, leading the trading volume, stimulated by the news of its subsidiary "Keling AI" planning to spin off and list independently; the optical communication and resource sectors performed actively, with PetroChina leading the blue chips. Meanwhile, influenced by short-selling bubble warnings and sentiment factors, the previously strong semiconductor sector experienced collective profit-taking, with SMIC and Hua Hong Semiconductor leading the declines

- The Hong Kong stock market's major indices showed mixed results, with the Hang Seng Index rising by 0.30% to 26,486.63 points while the Hang Seng Tech Index fell by 0.39% to 5,086.61 points.  
- Kuaishou's stock surged 3.78% after news of its AI division's planned spin-off, and the optical communications sector benefited from a partnership between Nvidia and Corning.  
- Concerns about an impending correction in AI stocks and inflation data due from the U.S. could impact market liquidity and investor sentiment.

Market Pulse

KUAISHOU-W

YOFC

Hang Seng Index

Hang Seng China Enterprises Index

Hang Seng TECH Index

PETROCHINA

ZIJIN MINING

Zijin Mining

HUA HONG SEMI

SMIC

JIANGXI COPPER

JCCL

CNOOC

NVIDIA

Corning

GIGADEVICE

Goldman Sachs

BANK OF CHINA

Bank Of China

ICBC

CHINA RES LAND

TRACKER FUND

TENCENT

XL2CSOPHYNIX

BABA-W

CSOP HS TECH

XL2CSOPSMSN

KUAISHOU-WR

PetroCN HK SDR 1to2

Hua Hong

SMIC HK SDR 5to1

CNOOC-R

NVIDIA Corporation

GS Hldg R

BOC HONG KONG

Bank of China

Tencent

TENCENT-R

Tencent HK SDR 10to1

Tencent Holdings Limited

Alibaba

BABA-WR

Alibaba HK SDR 5to1

Hong Kong Stock Market Mid-Review | The three major indices show structural differentiation, Kuaishou surges due to the positive impact of AI spin-off, and the semiconductor sector collectively retreats