Market Overview

▪ Hong Kong stocks closed with the three major indices fluctuating narrowly;

▪ The Hang Seng Index closed at 26,406.84 points, up 0.05%;

▪ The Hang Seng Tech Index closed at 5,106.40 points, up 0.07%;

▪ The Hang Seng China Enterprises Index closed at 8,884.20 points, down 0.05%.

Sector Performance and Hot Stocks

Semiconductor and Memory Chip Supply Chain Surges Across the Board

▪ SICC (02631.HK) surged 25.32% to close at HK$88.35; Montage Technology (06809.HK) rose 12.83%; GigaDevice (03986.HK) rose 8.37%.

▪ SMIC (00981.HK) rose 4.57%, Hua Hong Semiconductor (01347.HK) rose 2.29%, and FIT Hon Teng (06088.HK) rose 8.15%.

▪ The memory segment saw frenzied capital inflows, with CSOP 2X Daily SK Hynix (07709.HK) skyrocketing 24.36% on turnover reaching HK$9.19 billion; CSOP 2X Daily Samsung (07747.HK) rose 5.87%.

PCB Sector Rises in Tandem Driven by High-End Demand

▪ Victory Giant Technology (02476.HK) rose 14.19% to close at HK$394.4; Kingboard Holdings (00148.HK) rose 7.62%; Kingboard Laminates Holdings (01888.HK) rose 1.43%.

Tech Majority Stake Stocks Retreat Collectively Dragged Down by Macro Sentiment

▪ Alibaba-W (09988.HK) fell 3.31% to close at HK$134.4; Baidu Group-SW (09888.HK) fell 3.10%;

▪ Tencent Holdings (00700.HK) fell 1.32% with turnover of HK$11.95 billion; Kuaishou-W (01024.HK) fell 2.46%.

Mainland Property Stocks and New Energy Vehicle Sector Show Active Divergence

▪ Mainland property stocks strengthened, with China Resources Land (01109.HK) rising 4.35% and China Overseas Land & Investment (00688.HK) rising 2.45%.

▪ New energy vehicles diverged, with Li Auto-W (02015.HK) rising 5.28%, BYD Company (01211.HK), favored by major banks, rising 1.75%, while Geely Automobile (00175.HK) fell 1.32%.

▪ Additionally, Lenovo Group (00992.HK), catalyzed by the AI server concept, surged 6.86%.

Macro Background

▪ In terms of industry and computing power, the accelerated mass production of Nvidia's new AI platform, Vera Rubin, coupled with expectations of doubled profits for SK Hynix, has sustained high demand for semiconductors and memory chips for AI training and inference. Meanwhile, expectations that SoftBank intends to enter the AI server field have further promoted the logic of overall valuation reshaping in the AI hardware supply chain.

▪ Regarding macroeconomics and liquidity, the US is set to release key Inflation Expectations data this week. Market concerns that a rebound in April's CPI will significantly delay Federal Reserve rate cut expectations to late 2026 have cast a shadow of tightening liquidity, directly suppressing the market performance of growth-oriented tech Majority Stake stocks.

▪ On the policy and economic front, Hong Kong's Q1 GDP recorded its strongest quarterly growth in nearly five years. Coupled with expectations of improved Sino-US relations brought about by US President Trump's upcoming visit to China, this has provided marginal valuation support for mainland property and traditional economic sectors.

Top 10 Market Turnover

▪ Tracker Fund of Hong Kong (02800.HK) Last traded at HK$26.52, up 0.08%, turnover HK$13.6 billion

▪ Alibaba-W (09988.HK) Last traded at HK$134.40, down 3.31%, turnover HK$12.4 billion

▪ Tencent Holdings (00700.HK) Last traded at HK$465.20, down 1.32%, turnover HK$11.9 billion

▪ Hang Seng China Enterprises Index ETF (02828.HK) Last traded at HK$91.12, up 0.04%, turnover HK$10.3 billion

▪ CSOP 2X Daily SK Hynix (07709.HK) Last traded at HK$97.60, up 24.36%, turnover HK$9.2 billion

▪ SMIC (00981.HK) Last traded at HK$76.70, up 4.57%, turnover HK$8.3 billion

▪ CSOP Hang Seng TECH Index ETF (03033.HK) Last traded at HK$5.00, up 0.04%, turnover HK$6.7 billion

▪ Kuaishou-W (01024.HK) Last traded at HK$51.65, down 2.46%, turnover HK$5.8 billion

▪ Hua Hong Semiconductor (01347.HK) Last traded at HK$133.80, up 2.29%, turnover HK$5.3 billion

▪ Yangtze Optical Fibre and Cable (06869.HK) Last traded at HK$259.20, up 5.37%, turnover HK$4.0 billion