Hang Seng Slides 177 Points; SMIC Q2 Profit Surges 261% Against Market Trend
SingTao · 2 SOURCESabout 1 hour ago2 MIN
Summary
The Hang Seng Index opened down 177 points at 25,219 on Friday as heavyweight tech stocks retreated following disappointing earnings from Tencent and JD.com . Despite the broader market weakness, SMIC (Semiconductor Manufacturing International Corp) bucked the trend, surging 4.74% to 70.75 HKD after reporting stellar second-quarter results . US producer price index data for July came in below expectations, easing inflation concerns and pushing Federal Reserve rate hike odds lower . Wall Street responded positively, with the S&P 500 closing at a record high of 7,798 and the Nasdaq gaining 0.81% .
Key Points
- Hang Seng Index opened at 25,219, down 177 points, with major tech stocks including Meituan (-1.37%), Alibaba (-1.31%), and Tencent (-1.13%) all declining
- SMIC reported Q2 revenue of $3.006 billion USD, up 36.1% year-over-year, with net profit of $479 million surging 261.7%
- JD.com announced H1 FY2026 net profit of 122.31 billion yuan, down 28.34% year-over-year, with shares opening at 115 HKD, down 6.5%
- US July PPI rose 4.7% year-over-year, below the expected 4.9%, reducing Fed September rate hike probability to about 35%
- Southbound trading saw net selling of HK$3.667 billion on Thursday, with Tencent, SMIC, and Huali Semiconductor receiving net buys totaling HK$5.616 billion, HK$834 million, and HK$822 million respectively
Why It Matters
The divergence between SMIC's strong performance and the broader tech sector selloff reflects growing confidence in China's semiconductor industry amid US export restrictions, while JD.com's profit decline signals persistent pressures on consumer spending and e-commerce margins in the mainland market . With the 20-day moving average now broken and the 100-day line under threat, Hong Kong equities face technical challenges despite supportive US inflation data .
The divergence between SMIC's strong performance and the broader tech sector selloff reflects growing confidence in China's semiconductor industry amid US export restrictions, while JD.com's profit decline signals persistent pressures on consumer spending and e-commerce margins in the mainland market . With the 20-day moving average now broken and the 100-day line under threat, Hong Kong equities face technical challenges despite supportive US inflation data .