The Zhitong Finance App learned that the three major indices of Hong Kong stocks had mixed trends. The Hengke Index surged higher this morning and then turned down, and the Hang Seng Index turned red at the end of the session. At the close, the Hang Seng Index rose 0.16% or 38.6 points to 24213.72 points, with a full-day turnover of HK$309.515 billion; the Hang Seng State-owned Enterprises Index rose 0.33% to 8065.97 points; and the Hang Seng Technology Index fell 0.96% to 4676.43 points.
Huatai Securities pointed out that it is recommended to focus on fundamental factors at the moment, especially considering that disturbances such as recent geopolitical warming and stronger US bond interest rates still exist, profit visibility rather than valuation may be the core factor dominating the quarterly market. In terms of allocation, the short-term focus is on industries where profit expectations have improved, and the short selling ratio is still at a historically high level, such as non-banking, transportation, power utilities, electronics, communications, etc., as well as alpha opportunities before and after the performance period of innovative drugs and AI software.
Blue-chip stock performance
China's Hongqiao (01378) led the blue chip increase. At the close, it rose 3.57% to HK$21.48, with a turnover of HK$1.43 billion, contributing 3.97 points to the Hang Seng Index. China Hongqiao issued an announcement stating that net profit for the first half of 2026 is expected to increase by about 39% year on year, mainly due to the increase in sales prices of the Group's aluminum alloy products compared to the same period in 2025. Detailed financial results will be disclosed in the interim results announcement and are expected to be announced before the end of August 2026.
In terms of other blue-chip stocks, Longhu Group (00960) rose 3.28% to HK$6.3, contributing 0.79 points to the Hang Seng Index; China Resources Brewery (00291) rose 3.24% to HK$22.92, contributing 1.8 points to the Hang Seng Index; China Life Insurance (02628) fell 3.17% to HK$27.52, dragging down the Hang Seng Index by 10.26 points; and Xinyi Glass (00868) fell 2.93% to HK$8.28, dragging down the Hang Seng Index by 0.85 points.
Popular sector aspects
On the market, large tech stocks had mixed ups and downs. JD rose nearly 3%, Kuaishou rose more than 1%, and Tencent fell 0.56%. Korean stocks fell to the point of collapse twice today. SK Hynix plummeted by more than 15% to record the biggest drop. The storage concept fell one after another, with AI hardware such as PCB and optical communication falling one after another; commercial aerospace concepts pulled back, Junda shares fell by more than 18%; the US and Iran situation escalated, aviation stocks and gold stocks were under pressure, and oil and gas equipment stocks showed active performance. In addition, some food and beverage stocks, pharmaceutical stocks, and domestic bank stocks rose.
1. The storage concept dropped the most. At the close, Southern doubles as long as Hynix (07709) fell 33% to HK$59.9; Southern doubled, Samsung Electronics (07747) fell 20.09% to HK$89.14; GigaYi Innovation (03986) fell 15.29% to HK$629; and Lanqi Technology (06809) fell 5.19% to HK$332.2.
On July 13, the South Korean stock market collapsed twice, and the two major memory chip giants fell sharply. SK Hynix closed down 15.37%, the biggest drop in record; Samsung Electronics fell more than 10%. KIS, a local brokerage firm in South Korea, released a forecast report on SK Hynix's second quarter report and lowered its second quarter performance forecast. Among them, the operating profit margin was estimated at 65%, down 8 percentage points from the previous month. The reason for the month-on-month decline in profit margins is that compared to the overall market, high-bandwidth memory (HBM) shipments account for a high share of current high-bandwidth memory (HBM) shipments, and the average unit sales price (ASP) of products is lower than the market average. It is worth noting that due to limited supply, the prices of key components such as memory chips and semiconductors are being pushed up. Goldman Sachs economist Megan Peters wrote that the US may be hit the hardest by inflation.
2. Oil and gas stocks were active. At the close, Baiqin Oil Services (02178) rose 16.47% to HK$0.198; Shandong Molong (00568) rose 11.18% to HK$5.47; and CNOOC Oil Services (02883) rose 2.93% to HK$6.68.
The escalation of the US-Iran conflict boosted oil prices, and WTI crude oil futures once surged by more than 5%. On the 12th local time, the US military launched another attack on Iran's southern province of Hormozgan, Bushehr province, and southwestern Khuzestan province on the grounds of “Iran's attack on merchant ships.” This is the fourth round of attacks launched by the US military against Iran in a week. In response to US military action, in the early morning of the 13th local time, drones and missiles launched from different regions within Iran launched large-scale attacks on US military targets in the Gulf region. Last weekend, Iran claimed that the Strait of Hormuz would be “closed indefinitely” from now on, but the US Central Command said the channel is still open to all ships.
3. The concept of traditional Chinese medicine is on the rise. At the close, Luye Pharmaceutical (02186) rose 8.33% to HK$2.08; Shenwei Pharmaceutical (02877) rose 3.13% to HK$7.91; and China Traditional Chinese Medicine (00570) rose 2.1% to HK$1.46.
Recently, the State Council agreed in principle to the “Fifteenth Five-Year Plan” for the Revitalization and Development of Traditional Chinese Medicine, which lays out a top-level road map for the collaborative development of traditional Chinese medicine business, industry, and culture over the next five years. Furthermore, recently, the “National Catalogue of Essential Medicines (2026 Edition)” was issued, and the new catalogue will be implemented on September 1. According to reports, this adjustment is the first comprehensive update since the 2018 edition of the catalogue. A total of 794 types of drugs (including 476 chemicals/biopharmaceuticals) have been included, and 116 new varieties (68 types of chemicals/biological drugs) have been added. For the first time, the catalogue uses innovative drugs as the selection direction in the selection mechanism, and includes 4 new domestically produced first-class innovative drugs (including 3 chemicals/biopharmaceuticals).
Popular exotic stocks
True Health Medical-B (02697) reached a record high. At the close, it was up 31.61% to HK$478.8.
True Health Medical's core product is a percutaneous puncture surgical robot. A total of four models (THS1, TH-S, TH-SPRO and TH-SA) have all obtained three types of registration certificates from the State Drug Administration and approved for lung and abdominal puncture. At the same time, the company is expanding the indications for TH-S1 to retroperitoneal lesions. According to Insight Consulting, measured by revenue from percutaneous puncture robots in 2025, the company ranked first in China, with a market share of 28.0%.
Basic Semiconductors (09971) has been strong throughout the day. At the close, it was up 10.29% to HK$38.8.
Basic semiconductors were announced. Since 2026, with the rapid development of emerging applications such as artificial intelligence and new energy vehicles around the world, leading to continued growth in market demand, the relationship between supply and demand in the industry has maintained a tight balance. After a comprehensive assessment of the market environment, cost changes and overall business strategy, the Group will adjust the sales prices of some products moderately starting from the third quarter of 2026, and the price increase of some products is expected to not exceed 25%.
Eight horse tea leaves (06980) are very pleasant. At the close, it was up 7.65% to HK$20.4.
The Bama Tea Industry is making a profit. Revenue is expected to increase by no less than 30% in the six months ending June 30, 2026; net profit to mother will increase by no less than 60% year on year. The significant year-on-year increase in net profit to the mother was mainly due to the expansion and growth of franchise channels, online channels and major customer channels, which led to an increase in revenue and profitability of these channels.
Insili Intelligence (03696) continues to move higher. At the close, it was up 4.95% to HK$44.94.
Insili Intelligence announced another AI-driven drug discovery collaboration with Kangzhe Pharmaceuticals in the field of central nervous system. The collaboration targets the indications of a huge market and is based on innovative mechanisms of action (MoA) identified by PandaOmics. According to the cooperation agreement, Insili Smart is expected to receive a total milestone payment of up to about 1.2 billion yuan and net sales share.
Changfei Optical Fiber Cable (06869) AH shares have plummeted. At the close, it was down 12.58% to HK$139.7.
The sharp rise in optical fiber prices and the existence of a gap between supply and demand in the industry are driving many companies to launch plans to expand production of optical rods and optical fibers. On the evening of July 10, both Fenghuo Communications and Lingyi Intelligent Manufacturing issued announcements. The former plans to raise no more than 2,913 billion yuan for projects such as intelligent optical fiber manufacturing, while the latter plans to participate in the restructuring of Fortis Jiashan and enter the optical fiber communication circuit.
GAC Group (02238) issued a profit warning. At the close, it was down 6.85% to HK$2.04.
The GAC Group expects a net loss of 4.06 billion yuan to 4.57 billion yuan in the first half of 2026, an increase of 60% to 80% over the previous year. Split by quarter, the net loss for the second quarter is expected to be 3.404 billion yuan to 3,914 billion yuan. The net loss for the first quarter was 656 million yuan, and the month-on-month loss margin for the second quarter increased further.