Hang Seng Index Surges 174 Points with Xiaomi Leading Gains, Chip Stocks Rally on Goldman Sachs Outlook
SingTao · 1 SOURCESabout 1 hour ago2 MIN
Summary
The Hang Seng Index climbed 174 points, or 0.68%, to 25,685 in Thursday's midday session with turnover reaching HK$139.9 billion . Xiaomi (1810) led blue-chip gains with a 4.3% rise, while Innovent Biologics (1801) surged 8.4% after reporting a 50.2% year-on-year increase in first-half net profit to RMB 1.25 billion . Goldman Sachs upgraded its global wafer fabrication equipment spending outlook, projecting US$150 billion, US$218 billion, and US$281 billion for 2026-2028 respectively . The semiconductor and optical communication sector outperformed with stocks like Aixin Yuanzhi (600) jumping over 14% and Cambridge Technology (6166) rising 11% . Meanwhile, reports of US-Iran consensus on a ceasefire agreement, including free navigation in the Strait of Hormuz, sent international oil prices tumbling over 4%, dragging down mainland energy stocks .
Key Points
- The Hang Seng Index opened 124 points higher before trimming gains to close the morning session at 25,685, up 174 points (0.68%), with the Tech Index rising 72 points to 4,660
- Alibaba (9988) gained 1.5% as founder Jack Ma reportedly accumulated shares worth over HK$600 million, while chairman Joseph Tsai purchased 1.44 million shares totaling approximately HK$162 million over two days
- Innovent Biologics reported first-half revenue of RMB 8.62 billion, up 44.76% year-on-year, driven by its dual-engine growth strategy and new National Reimbursement Drug List (NRDL) products
- Goldman Sachs forecasts China's wafer fabrication equipment market will reach US$53 billion in 2027, with domestic companies' market share rising from 26% last year to 38% by 2028
- Northbound funds recorded a net sell of HK$6.61 billion on Tuesday, with Meituan (3690), Minmax (100), and WuXi Biologics (2269) being top net buyers
Why It Matters
The semiconductor sector's strong performance reflects growing confidence in China's self-sufficiency push, with domestic chip self-sufficiency rate reaching approximately 70% by volume in June 2024, up from 38% in January 2010 . The oil price decline provides relief for Hong Kong-listed consumer and transportation companies that face high fuel costs, while also reducing imported inflation pressures for the region .
The semiconductor sector's strong performance reflects growing confidence in China's self-sufficiency push, with domestic chip self-sufficiency rate reaching approximately 70% by volume in June 2024, up from 38% in January 2010 . The oil price decline provides relief for Hong Kong-listed consumer and transportation companies that face high fuel costs, while also reducing imported inflation pressures for the region .