--- title: "Hong Kong Stock Market Review: The Market Only Believes in Performance" type: "News" locale: "en" url: "https://longbridge.com/en/news/295785847.md" description: "The Hong Kong stock market review shows that the market is focused on performance. Lenovo rose over 20% due to better-than-expected ISG profit margins and a significant increase in orders; Tencent fell sharply due to the impact of profits and free cash flow pricing. Macro-wise, the CPI's mild decline alleviates concerns about interest rate hikes, while strong demand for AI infrastructure supports storage prices. Funds are clearly leaning towards directions supported by performance growth, and the decline in the non-ferrous gold sector reflects the market's correction of profit reassessment at high gold prices" datetime: "2026-08-13T11:00:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295785847.md) - [en](https://longbridge.com/en/news/295785847.md) - [zh-HK](https://longbridge.com/zh-HK/news/295785847.md) --- # Hong Kong Stock Market Review: The Market Only Believes in Performance The CPI is mild, reducing market concerns about a short-term rate hike; combined with strong performance from AI infrastructure companies, both liquidity and fundamentals are improving simultaneously, and overnight, AI upstream has regained strength. Among them, Lenovo surged over 20% today due to better-than-expected earnings, mainly because the improvement in the ISG profit margin was exceptionally fast. Over the past few quarters, the ISG profit margin improved from -0.2% to 3.6%, and in the latest quarter, it further rose to 9.1%. The company's original target was to reach 5% in the medium term and 7% in the long term, gradually aligning with overseas peers like Dell, but it has already significantly exceeded its targets ahead of schedule. Equally important is the order backlog, which increased from $21 billion last quarter to $54 billion, a quarter-on-quarter increase of 157%. Since the beginning of this year, several companies in the AI server supply chain have seen a surge in quarterly orders, indicating that the demand for AI infrastructure has not significantly weakened due to recent market concerns about CapEx ROI, and from another perspective, it at least adds support for maintaining high storage prices. Of course, the market does not expect storage prices to peak next quarter, but rather next year, and currently, the industry is essentially unable to self-verify. Ultimately, it returns to the need for AI downstream to explore scenarios beyond coding to resolve these concerns. Meanwhile, Tencent's significant drop reflects the market's initial pricing of profits and free cash flow (FCF). In fact, in the worst-case scenario, computing power can be rented out to break even, similar to Meta. The recent performance of Neoclouds in the U.S. stock market also confirms the demand for computing power. However, referring to China Mobile, its computing power service revenue reached 52.9 billion yuan in the first half of the year, a year-on-year increase of 14.0%; data center revenue was 19 billion yuan, a year-on-year increase of 13.2%, with AIDC revenue growing by 486% year-on-year. Intelligent computing service revenue was 5.3 billion yuan, with a growth rate of 130%, contributing 46.1% of the incremental computing power service revenue. The actual growth performance is more convincing than mentioning Workbuddy ranking first or HY3 OpenRouter in the top three, which is likely to be more credible to the market. Another characteristic of today's funds is a clear preference for directions supported by performance growth, while the decline in sectors like non-ferrous metals and gold serves as a counterexample. Although gold prices have fallen sharply, they are still flat or above for the year. However, for gold stocks, the issue is that the market has previously revalued future profits based on high gold prices. If the central price of gold declines subsequently, even if the current financial reports remain strong, the market will also trade in anticipation of a slowdown in future profit growth. If some companies still have high inventory or costs that need to be revalued, profit elasticity may further decline. In this context, for gold stocks to return to previous highs or even set new highs, it requires not only that gold prices do not plummet but also that gold prices re-enter an upward trend, or that corporate profit expectations are raised again. This is somewhat similar to storage, but the latter at least has supply and demand to determine it. Regardless, the movements of Lenovo and Tencent once again reflect that the market is currently rewarding "whether future profits can continue to be revised upward," and the subsequent performance of tech stocks will likely follow this logic ### Related Stocks - [LNVGY.US](https://longbridge.com/en/quote/LNVGY.US.md) - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [UGL.US](https://longbridge.com/en/quote/UGL.US.md) - [IAU.US](https://longbridge.com/en/quote/IAU.US.md) - [00992.HK](https://longbridge.com/en/quote/00992.HK.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [00HSI.HK](https://longbridge.com/en/quote/00HSI.HK.md) - [GLD.US](https://longbridge.com/en/quote/GLD.US.md) - [07500.HK](https://longbridge.com/en/quote/07500.HK.md) - [07200.HK](https://longbridge.com/en/quote/07200.HK.md) - [03115.HK](https://longbridge.com/en/quote/03115.HK.md) - [02800.HK](https://longbridge.com/en/quote/02800.HK.md) - [07300.HK](https://longbridge.com/en/quote/07300.HK.md) - [516650.CN](https://longbridge.com/en/quote/516650.CN.md) - [DELL.US](https://longbridge.com/en/quote/DELL.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [00941.HK](https://longbridge.com/en/quote/00941.HK.md) - [600941.CN](https://longbridge.com/en/quote/600941.CN.md) - [80992.HK](https://longbridge.com/en/quote/80992.HK.md) - [80700.HK](https://longbridge.com/en/quote/80700.HK.md) - [HTCD.SG](https://longbridge.com/en/quote/HTCD.SG.md) - [HCMD.SG](https://longbridge.com/en/quote/HCMD.SG.md) - [80941.HK](https://longbridge.com/en/quote/80941.HK.md) ## Related News & Research - [Another AI lab is burning through cash as Tencent earnings rise](https://longbridge.com/en/news/295641594.md) - [PRECIOUS-Gold climbs to nine-week high on buying momentum as inflation data looms](https://longbridge.com/en/news/295440174.md) - [Lenovo Group: Record revenue and net income driven by surging AI-related growth across all segments](https://longbridge.com/en/news/295755276.md) - [Lenovo profits soar past expectations on AI computers, servers and services](https://longbridge.com/en/news/295757788.md) - [Lenovo’s $26.9B quarter hints at AI’s next spending wave](https://longbridge.com/en/news/295794115.md)