Hong Kong stocks closed (08.19) | Hang Seng Index closed up 0.09%, AI hardware and robotics concept stocks fell sharply, Xiaomi Group-W (01810) bucked the market and rose nearly 5%

The Zhitong Finance App learned that interest rates on long-term bonds of many countries are suppressing market risk appetite. The market is waiting for the minutes of the July monetary policy meeting to be released by the Federal Reserve. By the close, the Hang Seng Index rose 0.09% or 23.92 points to 25495.07 points, with a full-day turnover of HK$253.175 billion; the Hang Seng State-owned Enterprises Index rose 0.21% to 8471.21 points; the Hang Seng Technology Index fell 1.21% to 4682.05 points.

Huatai Securities believes that the current valuation of Hong Kong stocks has been restored to a neutral level. With long-term profit expectations not fundamentally changing, the current ERP is less than 1% from the low point since 2025. From a global perspective, the Hang Seng Index's valuation is close to the level supported by global liquidity indicators. Looking ahead, a further increase in valuation will require an increase in AI progress and profit fulfillment expectations of Hong Kong stock companies, or stronger domestic demand policies and repair expectations.

Blue-chip stock performance

Xiaomi Group-W (01810) reversed the market and rose higher. At the close, it rose 4.81% to HK$27.44, with a turnover of HK$9.342 billion. Contributed 34.93 points. Xiaomi achieved total revenue of 108.9 billion yuan in the second quarter, up 9.9% month-on-month; adjusted net profit was 6.2 billion yuan, up 2.4% month-on-month. Mobile ASP reached a record high, with a gross profit margin of 8.5% better than market expectations. Lu Weibing, president of the Xiaomi Group, said that Xiaomi will launch a flagship phone in the second half of the year, and the Xiaomi Pengcheng series will also be officially launched. The company is still confident about the results in the second half of the year.

In terms of other blue-chip stocks, Hong Kong China Gas (00003) rose 7.37% to HK$7.285, contributing 8.63 points to the Hang Seng Index; New Oriental-S (09901) rose 4.17% to HK$42.98, contributing 2.02 points to the Hang Seng Index; China Unicom (00762) fell 12.36% to HK$5.495, dragging down the Hang Seng Index by 7.24 points; China Resources Beer (00291) fell 4.96% to HK$21.06, dragging down the Hang Seng Index by 2.78 points.

Popular sector aspects

On the market, large tech stocks had mixed ups and downs. After Xiaomi's performance, it rose nearly 5%, Tencent rose more than 1%, and Alibaba fell nearly 2%. The long-term debt storm reached its peak, and AI hardware stocks such as optical communications and semiconductors collectively fell; Suzake-3 achieved rocket land recycling, and commercial space stocks dived after opening higher this morning; the siphon effect of Yushu's listing showed a significant correction in the robot concept; biomedicine, non-ferrous metals, and aviation stocks fell one after another. On the other side, domestic bank stocks, shipping stocks, and coal stocks rose against the market.

AI hardware stocks all plummeted. At the close, Huahong Hongli (01347) fell 11.79% to HK$113.7; Cambridge Technology (06166) fell 11.73% to HK$89.15; Changfei Optical Fiber Cable (06869) fell 10.19% to HK$131.3; and Zhongji Xuchuang (03308) fell 10.06% to HK$1,100.

Driven by inflation, fiscal deficits, and a wave of artificial intelligence financing, long-term sovereign bonds from the US, Germany, France, the United Kingdom, and Japan were sold off. The yield on 30-year US bonds soared to the highest level since 2007, putting some pressure on long-term, overvalued growth stocks and technology stocks. In addition, OpenAI revealed that in the three months up to June, its revenue only grew to 6.7 billion US dollars, compared to 5.7 billion US dollars in the first quarter, while Q2 losses expanded further. The market is concerned that the revenue growth rate of large downstream models will slow down and losses will expand, and downstream customers may reduce their procurement expectations for servers, optical communications, and memory chips.

Most robot concepts have been pulled back. At the close, Eston (02715) fell 14.2% to HK$17.76; Vietnam (02432) fell 11.21% to HK$24.72; and Sanhua Intelligent Control (02050) fell 5.78% to HK$26.74.

Yushu Technology officially landed on the Science and Technology Innovation Board today. Its opening report was 1,100 yuan/share, up 629% from the issue price of 150.80 yuan. At one point, the intraday increase was over 700%. Market analysts believe that giant technology IPOs will attract large amounts of institutional capital to withdraw from existing robot concept stocks and transfer positions to new shares, leading to increased segmentation within the sector. However, in the medium to long term, Yu Shu's entry into A-shares means that the technological weight of the Chinese capital market will officially shift from mobile internet to physical intelligence, which will drive more long-term capital to systematically allocate humanoid robot tracks.

The commercial space concept went high and low. At the close, Junda shares (02865) fell 8.73% to HK$17.45; Goldwind Technology (02208) fell 8.33% to HK$10.02.

The Suzake-3 Yao2 carrier rocket was launched at the Dongfeng Commercial Space Innovation Test Zone. The first stage of the rocket successfully landed on the square of the Zhuque-3 landing site in Minqin County, Gansu Province according to the scheduled procedures. It is worth mentioning that this mission is the first time that China has successfully implemented controlled land recycling by reusing the first stage landing leg of the Long March 10B carrier rocket after successfully recycling the first sub-stage marine network system of the Long March 10B carrier rocket on July 10, marking a major breakthrough in China's reusable rocket technology.

Domestic bank stocks rose against the market. At the close, Chongqing Rural Commercial Bank (03618) rose 2.86% to HK$6.48; China CITIC Bank (00998) rose 2.2% to HK$7.675; and Agricultural Bank (01288) rose 2.13% to HK$6.22.

According to the latest data from the General Financial Supervisory Authority, at the end of the second quarter of this year, commercial banks' net interest spreads were 1.41%; up 1 basis point from the low at the end of the first quarter. Looking at the long-term cycle, this is also the first time since the first quarter of 2022 that after a lapse of more than 4 years, commercial bank net interest spreads have increased positively month-on-quarter. Furthermore, Huachuang Securities pointed out that the characteristics of high dividends and undervaluation are still the undertones of bank stocks. In particular, in the context of declining risk-free interest rates, the debt-like nature of bank stocks will continue to attract steady capital.

Popular exotic stocks

iFLYTEK (02506 ) has been strong throughout the day. At the close, it was up 12.47 percent to HK$71.25.

iFLYTEK achieved revenue of 446 million yuan in the first half of the year, up 49.4% year on year, significantly exceeding market expectations; gross profit of 236 million yuan, up 53.5% year on year, and gross profit margin of 52.9%, up 1.4 percentage points year on year. In terms of specific business, AI diagnosis and treatment assistants contributed 202 million yuan in revenue, an increase of 47.5% over the previous year, accounting for 45.2% of total revenue, and continued to stabilize as a basic market.

Hong Kong's China Gas (00003) rose after the results. At the close, it was up 7.37% to HK$7.285.

Hong Kong China Gas announced its 2026 interim results, with turnover of HK$29.526 billion, up 7.31% year on year; breakthrough progress was achieved in growth business, and operating profit for the period surged 3 times year on year; profit attributable to shareholders increased 23% year on year to HK$3.64 billion, with a basic profit of 19.5 HK cents per share and an interim dividend of HK12 cents per share.

China Unicom's (00762 ) stock price fell sharply. At the close, it was down 12.36% to HK$5.495.

China Unicom achieved operating income of 201,364 billion yuan in the first half of the year, up 0.6% year on year; net profit attributable to shareholders of listed companies was 4.139 billion yuan, down 34.8% year on year, down about 2.2 billion yuan from the same period last year. During the reporting period, the phased fluctuations in the company's profits stemmed from multiple factors. In addition to VAT, changes in the pace of labor cost investment were an important reason.

Huaneng International (00902) was under pressure throughout the day. At the close, it was down 5.36% to HK$5.385.

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%. According to calculations, the company's net profit for the second quarter was 2.102 billion yuan, down 53% from 4.484 billion in the first quarter.

Huarun Beer (00291) Afternoon diving. At the close, it fell 4.96% to HK$21.06.

China Resources Beer achieved turnover of 24.24 billion yuan in the first half of the year, up 1.24% year on year; profit attributable to shareholders was 5.169 billion yuan, down 10.71% year on year; basic profit per share was 1.59 yuan. An interim dividend of RMB 0.446 per share was paid, compared to RMB 0.464 for the same period last year.