Hong Kong stocks close (08.19) | Hang Seng Index rises 0.09% AI hardware and robotics concept stocks plummet Xiaomi Corporation-W rises nearly 5% against the trend

According to Zhitong Finance APP, long-term bond yields in multiple countries have surged, suppressing market risk appetite. The market is awaiting the upcoming release of the Federal Reserve's minutes from the July monetary policy meeting. The three major indices of the Hong Kong stock market showed mixed performance. By the close, the Hang Seng Index rose 0.09% or 23.92 points to 25,495.07 points, with a total turnover of HKD 253.175 billion; the Hang Seng China Enterprises Index rose 0.21% to 8,471.21 points; the Hang Seng Tech Index fell 1.21% to 4,682.05 points.

Huatai Securities believes that the current valuation of Hong Kong stocks has been restored to a neutral level. With no substantial changes in long-term profit expectations, the current equity risk premium (ERP) is less than 1% away from the low point since 2025. From a global perspective, the valuation of the Hang Seng Index is close to levels supported by global liquidity indicators. Looking ahead, further valuation increases will require advancements in AI for Hong Kong companies and rising profit realization expectations, or stronger domestic demand policies and recovery expectations.

Blue Chip Performance

Xiaomi Corporation-W (01810) rose against the trend. By the close, it was up 4.81% to HKD 27.44, with a turnover of HKD 9.342 billion, contributing 34.93 points. Xiaomi achieved total revenue of RMB 108.9 billion in the second quarter, a quarter-on-quarter increase of 9.9%; adjusted net profit was RMB 6.2 billion, a quarter-on-quarter increase of 2.4%. The average selling price (ASP) of smartphones reached a record high, with a gross margin of 8.5%, better than market expectations. Xiaomi's president, Lu Weibing, stated that the company will launch flagship smartphones in the second half of the year, and the Xiaomi Automotive Pengcheng series will also officially launch, with confidence in the performance for the second half of the year.

In other blue chip stocks, HK & CHINA GAS (00003) rose 7.37% to HKD 7.285, contributing 8.63 points to the Hang Seng Index; New Oriental EDU & Tech (09901) rose 4.17% to HKD 42.98, contributing 2.02 points; China Unicom (00762) fell 12.36% to HKD 5.495, dragging down the index by 7.24 points; CHINA RES BEER (00291) fell 4.96% to HKD 21.06, dragging down the index by 2.78 points.

Popular Sectors

On the market, large tech stocks showed mixed results, with Xiaomi rising nearly 5% after earnings, Tencent up over 1%, while Alibaba fell nearly 2%. Under pressure from the long bond storm, AI hardware stocks such as optical communication and semiconductors collectively plummeted; Zhuque-3 achieved land recovery of the rocket, and commercial aerospace stocks opened high before diving; the siphoning effect of Yushu's listing became apparent, with significant corrections in robotics concepts; biopharmaceuticals, non-ferrous metals, and aviation stocks all fell. On the other hand, domestic banks, shipping stocks, and coal stocks rose against the trend.

AI hardware stocks all plummeted. By the close, Hua Hong Semiconductor (01347) fell 11.79% to HKD 113.7; Cambridge Technology (06166) fell 11.73% to HKD 89.15; Changfei Optical Fiber and Cable (06869) fell 10.19% to HKD 131.3; Zhongji Xuchuang (03308) fell 10.06% to HKD 1,100.

Driven by inflation, fiscal deficits, and a wave of AI financing, long-term sovereign bonds in the United States, Germany, France, the United Kingdom, and Japan have been sold off, with the yield on 30-year U.S. Treasuries soaring to its highest level since 2007, putting pressure on long-duration, high-valuation growth and tech stocks In addition, OpenAI revealed that its revenue only grew to USD 6.7 billion in the three months ending in June, compared to USD 5.7 billion in the first quarter, while Q2 losses further widened. The market is concerned about the slowdown in revenue growth from downstream large models and the widening losses, which may lead downstream customers to reduce their procurement expectations for servers, optical communications, and storage chips.

Most robotics concepts have retreated. As of the close, Estun Automation (02715) fell 14.2% to HKD 17.76; Yujian (02432) dropped 11.21% to HKD 24.72; and Sanhua Intelligent Control (02050) decreased 5.78% to HKD 26.74.

Yushu Technology officially landed on the Sci-Tech Innovation Board today, opening at HKD 1,100 per share, a staggering 629% increase from the issue price of HKD 150.80. During the session, the increase once exceeded 700%. Market analysis suggests that the giant tech IPO will attract a large amount of institutional funds to withdraw from existing robotics concept stocks and reallocate to the new shares, leading to increased differentiation within the sector. However, in the medium to long term, Yushu's listing on the A-share market signifies a shift in the technology weighting of China's capital market from mobile internet to embodied intelligence, which will draw more long-term funds into the humanoid robotics sector.

Commercial aerospace concepts opened high but closed low. As of the close, Junda Co., Ltd. (02865) fell 8.73% to HKD 17.45; Goldwind Technology (02208) dropped 8.33% to HKD 10.02.

The Zhuque-3 Remote II launch vehicle was successfully launched from the Dongfeng Commercial Aerospace Innovation Experimental Zone, with the first stage of the rocket landing successfully at the Zhuque-3 landing site in Minqin County, Gansu Province, as per the planned procedure. It is worth mentioning that this mission marks China's first successful implementation of a controlled recovery of a reusable rocket's first stage on land, following the successful recovery of the first stage of the Long March 10 B launch vehicle at sea on July 10, marking a significant breakthrough in China's reusable rocket technology.

Domestic bank stocks rose against the trend. As of the close, Chongqing Rural Commercial Bank (03618) rose 2.86% to HKD 6.48; CITIC Bank (00998) increased 2.2% to HKD 7.675; and Agricultural Bank of China (01288) gained 2.13% to HKD 6.22.

The latest data from the Financial Regulatory Bureau shows that at the end of Q2 this year, the net interest margin of commercial banks was 1.41%, recovering by 1 basis point from the low at the end of Q1. Looking at a longer time frame, this also marks the first quarter-on-quarter positive growth in the net interest margin of commercial banks since Q1 2022, after more than four years. Additionally, Huachuang Securities pointed out that the characteristics of high dividends and low valuations remain the fundamental attributes of bank stocks, especially in the context of declining risk-free interest rates, which will continue to attract stable funds to bank stocks.

Popular Active Stocks

iFlytek Medical Technology (02506) remained strong throughout the day. As of the close, it rose 12.47% to HKD 71.25 iFlytek Medical achieved revenue of 446 million yuan in the first half of the year, a year-on-year increase of 49.4%, significantly exceeding market expectations; gross profit was 236 million yuan, a year-on-year increase of 53.5%, with a gross margin of 52.9%, up 1.4 percentage points year-on-year. In terms of specific business, the AI diagnostic assistant contributed revenue of 202 million yuan, a year-on-year increase of 47.5%, accounting for 45.2% of total revenue, maintaining a solid foundation.

HK & CHINA GAS ( 00003 ) rose after earnings . As of the close, it increased 7.37%, reporting 7.285 HKD.

HK & CHINA GAS announced its mid-term results for 2026, with a turnover of HKD 29.526 billion, a year-on-year increase of 7.31%; growth businesses made breakthrough progress, with operating profit tripling year-on-year; profit attributable to shareholders increased by 23% year-on-year to HKD 3.64 billion, with basic earnings per share of HKD 0.195, and an interim dividend of HKD 0.12 per share.

China Unicom (00762 ) stock price plummeted . As of the close, it fell 12.36%, reporting 5.495 HKD.

China Unicom achieved operating revenue of 201.364 billion yuan in the first half of the year, a year-on-year increase of 0.6%; net profit attributable to shareholders of listed companies was 4.139 billion yuan, a year-on-year decrease of 34.8%, a decrease of about 2.2 billion yuan compared to the same period last year. The company's profit fluctuations during the reporting period were due to multiple factors, with changes in the pace of labor cost investment being a significant reason, in addition to value-added tax.

Huaneng International ( 00902 ) was under pressure all day . As of the close, it fell 5.36%, reporting 5.385 HKD.

Huaneng International achieved revenue of 106.909 billion yuan in the first half of the year, a year-on-year decrease of 4.57%; net profit attributable to shareholders of listed companies was 6.586 billion yuan, a year-on-year decrease of 28.89%. It was calculated that the company's net profit in the second quarter was 2.102 billion, a decrease of 53% compared to 4.484 billion in the first quarter.

CHINA RES BEER ( 00291 ) plummeted in the afternoon . As of the close, it fell 4.96%, reporting 21.06 HKD.

CHINA RES BEER achieved a turnover of 24.24 billion yuan in the first half of the year, a year-on-year increase of 1.24%; profit attributable to shareholders was 5.169 billion yuan, a year-on-year decrease of 10.71%; basic earnings per share were 1.59 yuan. An interim dividend of RMB 0.446 per share was declared, compared to RMB 0.464 in the same period last year