HSI fell 2.15%
Editor’s Note: As always, we would appreciate any feedback you have. It will help us make this app more useful to you.
This week, the Hong Kong market showed a rise-then-retreat pattern, with both major indexes closing lower. The Hang Seng Index(HSI) declined 2.15% for the week, while the Hang Seng TECH Index(HSTECH) fell 3.1%. After a 1.05% gain on Monday, HSI corrected for four consecutive trading days. Geopolitical risks and rising long-end U.S. Treasury yields suppressed risk appetite. On Thursday, earnings from Tencent Holdings (00700) and a sharp rally in LENOVO GROUP (00992) briefly lifted sentiment, but failed to reverse the downtrend. On Friday, the market continued to drift lower on thinner volume.
At the macro level, multiple pressures overlapped. Geopolitically, U.S.-Iran tensions persisted and the Strait of Hormuz remained volatile. The U.S. defense secretary stated that maritime containment on Iran could be maintained “indefinitely.” Brent crude briefly rose to USD 88.90, lifting inflation expectations and safe-haven demand. In the U.S., July CPI rose 3.4% YoY, in line with expectations, and PPI decelerated from 5.5% to 4.7% YoY. Cooling inflation narrowed expectations for a September Fed rate hike. However, the 30-year U.S. Treasury auction stopped at a 5.216% yield, the highest since 2001, while the 10-year yield approached 5%, continuing to pressure Hong Kong equity valuations. On tariffs, Trump signed a proclamation imposing a 100% tariff on specific imported drones, adding uncertainty to global supply chains.
In mainland China, on August 14 the PBOC rolled over RMB 1 trillion of outright reverse repos and, for the first time, conducted mid-month overnight reverse repos—continuing a “quantity over price” approach and keeping liquidity ample. China’s July CPI rose 0.5% YoY, while PPI growth moderated to 3.5% YoY, leaving room for policy easing under benign inflation. In addition, Hong Kong Chief Executive John Lee said the government aims to release Hong Kong’s first five-year plan in Q3, providing a medium- to long-term policy anchor for markets.
By sector, O’Neil industry data showed that the top three gainers in Hong Kong this week were: Computer-Hardware/Perip(G3580IG.HK), up 18.15% and ranked No.1 out of 197 industries; Telecom-Infrastructure(G4895IG.HK), up 11.19% and ranked No.2; and Elec-Semiconductor Equip(G3674IG.HK), up 7.66% and ranked No.3. All three leaders are tied to different parts of the AI computing-power value chain. Computer-Hardware/Perip benefited from sustained expansion in AI hardware demand; Telecom-Infrastructure benefited from accelerated buildout of compute networks and communication infrastructure; and Elec-Semiconductor Equip extended the logic of improving semiconductor-cycle momentum. Capital clearly concentrated in the tech-hardware theme, with high relative industry-strength rankings. In contrast, nonferrous metals, chemicals, autos, consumer, and energy generally underperformed, highlighting sharp divergence and confirming that structural opportunities remain concentrated in high-growth AI-compute-related industries amid an overall market correction.
U.S. equities posted a “low-then-high” pattern this week, with growth stocks clearly outperforming value. The Dow Jones Indus Actual(0DJIA) fell 0.36% for the week; the Nasdaq Composite(0NDQC) rose 0.42%; and the S & P 500 Index(0S&P5) rose 0.53%. On Thursday, all three major indexes closed higher, and the S & P 500 Index hit another all-time high, just one step away from its one-year high of 7816.7.
Cooling inflation was the key driver of the late-week rebound in U.S. stocks: July CPI slowed to 3.4% YoY and core CPI at 2.5% was in line with expectations; PPI eased to 4.7% YoY and core PPI MoM came in below expectations; initial jobless claims were 209,000, slightly above consensus. Marginal labor-market softening further reduced the need for a September Fed hike. Still, bonds remain the biggest risk point: the 30-year Treasury auction yield of 5.216% was the highest since 2001 and showed signs of weak demand; the 30-year yield briefly rose to 5.27%, a 19-year high. Treasury Secretary Bessent sought to stabilize long-end rates through a policy mix including coordinated yen intervention with Japan and signaling potential adjustment of long-bond supply. On tariffs, the U.S. imposed a 100% tariff on certain imported drones and 25% tariffs on small drones and selected components, effective in phases, disrupting supply chains. Meanwhile, EIA crude inventories surged by 17.423 million barrels in one week, far above expectations; oil fell more than 2% on Thursday, marginally easing inflation pressure. At the industry level, AI compute capex continued to accelerate: NVIDIA, Apollo, BlackRock and others launched a USD 500 billion AI infrastructure financing platform; Anthropic reportedly plans an autumn IPO at a USD 2 trillion valuation; TSMC’s July revenue rose 44.7% YoY to a record monthly high, validating strong compute-cycle momentum. Memory-chip stocks also rebounded sharply on Thursday, with SanDisk up over 13% and guiding to high margins.
A-shares moved lower in a choppy pattern this week, while turnover remained elevated. CSI 300(000300) fell 0.61% for the week. Average daily turnover on the Shanghai Composite was about RMB 2.41 trillion, while money-making effect weakened: more than 4,300 stocks fell on Thursday, and Friday’s volume shrank significantly to 35.91% below the 50-day average. By theme, computing-hardware chains such as CPO, optical fiber, and compute leasing repeatedly strengthened, alongside innovative pharma and power-grid utilities; nonferrous metals, oil & gas, and coal remained under pressure.
Policy support kept building. The PBOC’s Q2 monetary policy implementation report reiterated a moderately accommodative stance, stronger counter-cyclical adjustment, and timely incremental policies. The “15th Five-Year” reform and development plan of the PBOC was released with five core tasks. Industrial policy was rolled out intensively: Shanghai released its “15th Five-Year” plan for software and information services, targeting RMB 4 trillion in industry scale by 2030 and deployment of a 100,000-card-class intelligent computing cluster. On data, July CPI rose 0.5% YoY and core CPI rose 0.9% YoY, leaving room for easing. July NEV sales reached 1.561 million units, up 23.7% YoY, with penetration surpassing 60% for the first time. Onshore RMB strengthened past 6.75 to a three-and-a-half-year high, while 30-year China government bond yields fell below 2.16%, reflecting stronger easing expectations. On flows, a new semiconductor listing surged 740% on debut; Unitree Technology’s IPO subscription count set a STAR Market record; and new fund issuance accelerated, indicating continued active incremental inflows.
The Top 33 portfolio rose 0.54% on average this week, with 18 gainers and 15 decliners among 33 constituents. LENOVO GROUP(00992) led with a 19.57% weekly gain, with an O’Neil score of 69, relative-strength score of 98, industry rank of 1, and latest quarterly revenue growth of 43.09% YoY. TINGYI(00322) rose 18.04%, with industry rank 33. BIOCYTOGEN-B(02315) gained 11.65%, with an O’Neil score of 83 and industry rank 17. The model portfolio rose 0.21% on average this week; constituent MIDEA GROUP(00300) rose 0.21%, with an O’Neil score of 69 and EPS score of 93, showing defensive characteristics in a weak market.
Technically, the Hang Seng Index(HSI) remains weak in the short term: it is below the 5-day (-1.54%), 10-day (-2.09%), and 20-day (-1.49%) moving averages, but still above the 50-day (+2.0%), suggesting the medium-term uptrend is not yet broken. Near term, focus is on support at the 25,000 psychological level. Lower support is near the one-year low of 22,518.0, while resistance is near the one-year high of 28,056.1. In volume terms, HSI weekly turnover fell about 9% from last week, and Friday volume was 14.86% below the 50-day average, with no panic-volume spike and a strong wait-and-see mood. The Hang Seng TECH Index(HSTECH) is 9.22% below its 200-day average, indicating medium- to long-term pressure. Friday volume was 24.86% above its 50-day average, suggesting more concentrated selling pressure in tech stocks, with key support near the one-year low of 4,229.94.
Southbound funds showed a “buy-the-dip” pattern this week, with cumulative net buying of about HKD 1.406 billion from Monday to Thursday. Net buying was HKD 2.021 billion on Monday; net selling of HKD 1.376 billion and HKD 2.906 billion on Tuesday and Wednesday, respectively; and renewed net buying of HKD 3.667 billion on Thursday when HSI traded at lows. Tencent Holdings (00700) alone saw HKD 5.6 billion of bottom-fishing inflow in one day, indicating that mainland investors remain willing to accumulate core Hong Kong tech assets on weakness.
This week’s market revolved around three main themes: “geopolitical risk,” “cooling inflation vs. long-end rate pressure,” and “AI value-chain divergence.” Hong Kong equities corrected under external rate and oil pressure, but the AI compute theme and strong large-cap earnings provided structural support. U.S. equities oscillated between inflation relief and bond-yield pressure, while the S & P 500 Index still closed at a record high. A-share indexes were range-bound, with policy-easing expectations resonating with the technology mainline. Looking ahead, key focuses include developments in the Strait of Hormuz, the direction of U.S. 30-year Treasury yields, earnings delivery during Hong Kong’s reporting season, and implementation progress of Hong Kong’s five-year plan. This content is based on public data and market information and does not constitute investment advice. Markets involve risk; invest prudently.
What do you think? Please email us any questions or comments.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on August 14, 2026