Hong Kong stocks closed (07.28) | Hang Seng Index closed up 0.41%, PCB concept fell sharply across the board, and old gold (06181) led the decline in blue chips
The Zhitong Finance App learned that due to news that Nvidia plans to provide a huge financing guarantee for OpenAI, fear of selling has spread to the Asia-Pacific market. Today, the Hong Kong stock market maintained a volatile trend, and all three major stock indexes turned red. At the close, the Hang Seng Index rose 0.41% or 103.67 points to 25310.85 points, with a full day turnover of HK$25.633 billion; the State-owned Enterprises Index rose 0.85% to 8436.25 points; and the Hang Seng Technology Index rose 0.61% to 4730.61 points.
Cathay Pacific Haitong believes that the geopolitical situation in the Middle East has changed repeatedly and is uncertain, yet the overall context is still interpreted as a scenario of declining risk at the end. After previous market adjustments, micro-trading risks such as profit margins, leveraged capital, and other micro-transaction risks accumulated in the early period have been released to a certain extent. The valuation pressure on some technology and growth assets has been relieved, and the risk-to-return ratio has improved compared to before the adjustment. Currently, the market may still be disturbed by corporate performance verification, AI industry returns, and geopolitical factors. Short-term fluctuations are difficult to completely subside, but the market's sensitivity to negative information is expected to decline marginally.
Blue-chip stock performance
Old-fashioned Gold (06181) led the blue chip decline. At the close, it fell 23.76% to HK$302.2, with a turnover of HK$2,224 billion, dragging down the Hang Seng Index by 9.58 points. Old Shop Gold released a profit forecast. The revenue for the first half of the year is expected to be 22.7 billion yuan to 23.35 billion yuan, up about 60% to 65% year on year; net profit is expected to be about 4.31 billion yuan to 4.36 billion yuan, up about 83% to 85% year on year. Fu Rui said that the old store Gold was profitable, and sales and adjusted net profit grew strongly in the first half of the year. However, the second-quarter results estimated by Yingxi fell far short of the bank and market expectations, and stock prices are expected to be pressured in the short term.
In terms of other blue-chip stocks, NetEase (09999) rose 4.5% to HK$199.6, contributing 20.88 points to the Hang Seng Index; JD Group-SW (09618) rose 4.11% to HK$124.1, contributing 11.91 points to the Hang Seng Index; Ningde Era (03750) fell 4.96% to HK$603.5, dragging down the Hang Seng Index by 20 points; SMIC (00981) fell 2.19% to HK$69.1, dragging down the Hang Seng Index by 9.95 points.
Popular sector aspects
On the market, due to news that Nvidia plans to provide huge financing guarantees for OpenAI, market concerns about the AI infrastructure investment boom have intensified. Global technology stocks have been sold off again, and technology sectors such as storage, PCBs, chips, and optical communications collectively plummeted. The market is facing a critical “long and short game”. There is a high degree of uncertainty about the Federal Reserve's policy path, and colored concept stocks have collectively declined. Recently, positive news has continued in the field of AI applications. Some AI application stocks such as Extreme Perspective and China Software International have continued. On the other hand, the food and beer consumer sectors rose moderately.
1. The PCB concept fell sharply across the board. At the close, Guanghe Technology (01989) fell 16.53% to HK$98.5; Jiantao Laminate (01888) fell 16.03% to HK$33.74; Shenghong Technology (02476) fell 15.01% to HK$193.6; and Jiantao Group (00148) fell 12.04% to HK$42.22.
Nvidia's new round of potentially huge AI infrastructure transactions (alleged to have “circular financing” risks) has raised concerns in the market about excessive financial leverage in the industrial chain. Affected by this news, the US Philadelphia Semiconductor Index weakened sharply overnight, and Nvidia, Asmack, and memory chip leaders collectively plummeted. Panic quickly spread to the Asia-Pacific market, leading a sharp decline in storage, CPO, and PCB after opening. CITIC Securities said that the electronics sector has been drastically adjusted since July, and the valuation of related targets has clearly declined, yet the fundamentals of the industry remain strong. The current stock price adjustment has caused some high-quality stocks to enter a valuation depression. In the future, it is expected that performance implementation will resonate with valuation repair, and we are firmly optimistic about investment opportunities after falling beyond the decline.
2. The colored sector collectively declined. At the close, Ganfeng Lithium (01772) fell 5.05% to HK$36.44; China Baiyin Group (00815) fell 3.33% to HK$0.29; Jiangxi Copper (00358) fell 2.45% to HK$34.24; China Aluminum (02600) fell 2.4% to HK$8.13; and Luoyang Molybdenum (03993) fell 2.02% to HK$16.5.
Recently, the market is facing a critical “long and short game”: on the one hand, the Federal Reserve is about to begin a two-day interest rate meeting, and there is a high degree of uncertainty about the policy path; on the other hand, the situation between the US and Iran has sent a signal of phased easing — Trump said he would suspend military strikes to make room for diplomatic negotiations, and risk aversion in the market has clearly subsided. China Galaxy Securities pointed out that since the second quarter of 2026, due to the escalation of the Middle East conflict and the blockade of the Strait of Hormuz, the sharp rise in oil prices brought inflationary pressure. The market's policy expectations for the Federal Reserve changed from interest rate cuts at the beginning of the year to interest rate hikes. Changes in market liquidity and economic expectations have increased uncertainty about future price trends for non-ferrous metals and the future performance of non-ferrous metals companies.
3. Some AI application stocks rose. At the close, Extreme Vision (06636) rose 15.87% to HK$88; China Software International (00354) rose 4.78% to HK$3.51; NetEase (09999) rose 4.5% to HK$199.6; Shangtang-W (00020) rose 3.7% to HK$1.4; and Kingdee International (00268) rose 2.92% to HK$7.39.
Recently, positive news has continued in the field of AI applications. On the evening of July 27, Dark Side of the Moon announced that it will open source its most capable Kimi K3 model (2.8 trillion parameter MoE model) and support free commercial deployment. Meanwhile, Huawei Shengteng and Alibaba Cloud announced that they have completed adapting the model to domestic computing power. According to Huachuang Securities's latest opinion, it continues to be optimistic about the development of the AI industry. From GLM-5.2 to Kimi K3, the pace of performance improvement of domestic models has exceeded expectations, and has cutting-edge global competitiveness. It is expected that they will get rid of the low price label and pass the high-value scenario of high intelligent price ratio competition. It is recommended to continue to pay attention to the domestic model iteration pace, including the official DeepSEEK-v4 version, Qwen3.8, GLM-5.3, MiniMaxM3 pro, etc.
Popular exotic stocks
Fangyuan Life Services (09978) strengthened throughout the day after resuming trading. By the close, it had risen 291.3% to HK$0.9.
According to Fangyuan Life Service's announcement, the board of directors was informed by Yoncan Co., Ltd. (Yoncan Co., Ltd.) that on July 7, 2026, the offeror entered into a share purchase agreement with (including) the seller (Mansion Green, Aspiring Vision and Huiyu Investment), and the offeror has conditionally agreed to acquire the sale shares (that is, a total of 200 million shares, accounting for about 50.01% of the total number of shares issued on the date of the share purchase agreement). According to Rule 26.1 of the Takeovers Code, upon completion of the acquisition, the offeror will be required to make an unconditional mandatory cash offer for all issued shares (except those that the offeror and those acting in concert with the offeror have agreed to be acquired).
Quantifiers (02685) saw a sharp drop in volume. At the close, it fell 57.06% to HK$5.9.
The quantifier issued an announcement stating that all the conditions contained in the subscription agreement have been met, and the completion was implemented on July 21, 2026 in accordance with the terms and conditions of the subscription agreement. A total of 4,597,700 subscribed shares (equivalent to approximately 0.89% of the total issued share capital of the company immediately before completion and approximately 0.88% of the total issued share capital of the company after the issuance of subscription shares was expanded immediately after completion) have been allocated and issued to the subscribers at the subscription price of HK$13.05 per subscription share. The total proceeds from the subscription process were HK$60 million, while the net proceeds from the subscription were approximately HK$59.7 million.
Extreme Perspective (06636) performed well. At the close, it rose 15.87% to HK$88.
From an extreme perspective, the Group expects to achieve operating revenue of approximately RMB 153.4 million to RMB 165.2 million for the six months ended June 30, 2026 (during the reporting period), an increase of about 160% to 180% over the same period in 2025. The announcement stated that as the Group continues to promote commercialization and standardization capacity building of AI solutions, the efficiency of delivery of products and solutions related to large models continues to improve, leading to an optimization of the revenue structure and an improvement in gross profit levels, further enhancing the Group's overall profitability.