On June 25, Hong Kong's Hang Seng Index and National Index opened 0.1% lower, while the Hang Seng Tech Index rose 0.41%. Tech stocks showed sharp divergence: Alibaba fell over 2%, while memory semiconductor and AI-related stocks gained strength, with Luokang Technology up over 7%, Zhipu AI up 7%, Maxrivertech up nearly 6%, and Fiberhome Telecom up over 5%.
Multiple institutions cautioned on timing. Huatai Securities Chief Economist Yi Huang noted market sentiment remains at panic levels with no signs of improvement. He attributed the decline primarily to short-selling pressure rather than profit-taking, stating a mid-point reversal requires breakthroughs in AI progress and consumption recovery—neither currently present. Galaxy Securities predicted 2026 earnings will maintain structural repairs with AI, resources, and cyclical sectors leading growth, while traditional consumer and real estate sectors await clearer macro signals.
