Chinese broker stocks led the gains. The CSRC chairman proposed expanding the capital space for brokers, and the ROE ceiling of high-quality brokers is expected to be raised.
According to Zhitong Finance, the Hang Seng Index fell by 1.10%, or 285 points, to 25,799 points, and the Hang Seng Tech Index dropped by 0.24%. The trading volume of Hong Kong stocks in the morning session reached HKD 115.4 billion.
Chinese broker stocks led the gains. The chairman of the CSRC mentioned expanding the capital space for brokerages, which could potentially raise the ROE ceiling for high-quality brokers. Hongye Futures (03678) rose by 7.67%; Huatai Securities (06886) increased by 6.09%; Guotai Haitong (02611) gained 5.45%.
Nexteer Automotive (01316) surged over 6% following the release of China’s new national standard for automotive steering systems. Institutions are optimistic about the smooth mass production of steer-by-wire technology.
Institutions are closely watching the progress of domestic substitution. Most chip stocks performed strongly. Huahong Semiconductor (01347) rose over 3%, and SMIC (00981) gained over 3%.
AI and computing power remained strong growth drivers as optical communication concepts performed well against market trends. Yangtze Optical Fiber and Cable (06869) surged over 5%, and Huiju Technology (01729) rose over 4%.
Cambridge Industries Group (06166) climbed over 6% as the global optical module industry accelerates its upgrade to 800G/1.6T, benefiting from sustained growth in AI-driven computing demand.
RoboSense (02498) surged over 4% after securing exclusive designation for a popular model from FAW Toyota.
Tianyu Semiconductor (02658) rebounded over 12% on its second day of listing but remains 20% below its IPO price.
Coal stocks led the declines. Coking coal and coke futures plummeted during the day, with institutions noting that major steel mills have requested price cuts for coke. China Qinfa (00866) fell by 12%; China Coal Energy (01898) dropped by 4%; and China Shenhua (01088) declined by 3%.
Recurrent Energy (02570) plunged over 20%, hitting a record low, as it faced its one-year lock-up expiration today since listing.
Innovent Bio (01801) plunged over 8% on its first day of inclusion in the Hang Seng Index. Multiple large block trades occurred before the market opened, involving more than HKD 1.2 billion.
