On August 27, Hong Kong's three major indices opened higher but diverged in early trading. As of press time, the Hang Seng Index stood at 25,588 points, down 0.25% or roughly 64 points, after touching an intraday high of 25,792 points. The Hang Seng China Enterprises Index slipped 0.36% to 8,502 points, while the Hang Seng Tech Index edged up 0.18% to 4,634 points. About 50 minutes into the session, market turnover reached approximately HK$75.7 billion.

AI-related stocks rally across the board; Montage Technology up over 7%

As of press time, Montage Technology (06809.HK) surged over 7% to HK$288.2; TianShu Zhixin (09903.HK) rose over 6% to HK$388.6; Zhipu (02513.HK) gained nearly 6% to HK$1,089; Hua Hong Semiconductor (01347.HK) advanced over 3% to HK$121.5; and SMIC (00981.HK) added 2% to HK$71.1.

On the news front, Nvidia reported Q2 revenue of US$96 billion, doubling year-on-year, and for the first time offered a FY28 annual growth guidance of approximately 70%, far exceeding the market's 44% consensus estimate. Its shares rose nearly 5% after hours. Separately, Zhipu confirmed that the anonymous AI model "Ox Alpha" — which went viral on OpenRouter — is the latest generation of its GLM series, with usage more than double that of DeepSeek, further fuelling the AI sector rally.

Pharma stocks mixed; Hansoh Pharmaceutical skyrockets over 13%

Hansoh Pharmaceutical (03692.HK) soared over 13% to HK$36.1. The company reported interim net profit of RMB4.258 billion, up 35.8% year-on-year; innovative drug revenue reached approximately RMB7.092 billion, up 15.4%, with its contribution rising to 85.4%. The interim dividend was raised 23% to 28.5 HK cents. On the flip side, WuXi XDC (02268.HK) fell over 4% to HK$73.9 after controlling shareholder WuXi AppTec placed approximately 53.5 million shares through Morgan Stanley, cashing out nearly HK$4 billion.

Tech giants mixed; Baidu gains nearly 6%

Baidu (09888.HK) jumped nearly 6% to HK$96.2, buoyed by expectations of Stock Connect inclusion following its conversion to dual-primary listing. Tencent (00700.HK) inched up 0.8% to HK$449. Alibaba (09988.HK), Meituan (03690.HK) and Xiaomi (01810.HK) edged lower, all down less than 2%.

Consumer stocks broadly weaker; Feihe tumbles nearly 10%

China Feihe (06186.HK) slumped nearly 10% to HK$2.96 after reporting interim net profit of RMB837 million, down 16.3% year-on-year, with its interim dividend of 8.28 HK cents slashed by over 30% — the lowest since listing. Mengniu Dairy (02319.HK) fell nearly 6% to HK$17.63. Chow Sang Sang (00116.HK) retreated nearly 5% to HK$15.82 on profit-taking following its results.

Handset supply chain firms advance; Sunny Optical up nearly 3% post-results

Sunny Optical (02382.HK) rose nearly 3% to HK$64.3, after reporting interim profit of RMB1.808 billion, up 9.9% year-on-year. The market is also eyeing Apple's potential September launch of its first foldable iPhone. FIT HON TENG (06088.HK) surged over 5% to HK$5.26, while Q Tech (01478.HK) gained over 3% to HK$5.79.