Hong Kong stocks experienced a downturn at midday, with the Hang Seng Index falling by 1.17%, dropping 300 points to close at 25,352 points. The Hang Seng Tech Index also declined by 1.17%. Early trading volume in Hong Kong reached 117 billion Hong Kong dollars.

Memory chip-related stocks led the gains. Long-term contract prices for memory chips have spread to second and third-tier manufacturers, and the storage industry continues to maintain a high level of prosperity. Southern Two Times Long Hynix (07709) surged over 13%, while Southern Two Times Long Samsung Electronics (07747) jumped 14%. Montage Technology (06809) rose 6.6%, and GigaDevice Semiconductor (03986) climbed 5.6%.

MINIMAX-W (00100) gained 9.5%, as the commercial value of the video model market is considered significant, with the M3 Pro likely to become a real catalyst.

Zhongji Innolight (03308) rose over 7% after receiving additional investment from JPMorgan Chase. The optical communication giant's performance guidance exceeded expectations.

Yangtze Optical Fibre and Cable (06869) increased by 7.8%, benefiting from the strong upward cycle in the industry. The company holds a key advantage in capturing overseas AI infrastructure demand.

Kingboard Laminates (01888) gained over 6%, as AI demand tightens supply for copper-clad laminates and upstream raw materials. Citigroup expects a new wave of price increases in August.

Haizhi Technology Group (02706) rose over 6%, with institutions suggesting that benchmarking against Palantir could unlock platform-based growth potential.

The AI sector drove a sharp rise in computing power stocks, with the emergence of large models boosting demand for domestically produced computing power. Yuewan Intelligence (01396) rose over 5%.

GDS Holdings (09698) climbed 4.9%, following reports that DayOne has confidentially filed for a US IPO.

Jite Technology-P (07666) rose another 5%, with institutions indicating that AI4S will become the next major scenario after Coding.

WH Group (00288) fell another 4.78%, despite Smithfield Foods reporting a mid-term profit increase of over 17%. The company recently postponed its interim results announcement.

China Tower (00788) dropped 4.48% after its results release. While first-half profit grew by 30%, revenue declined and cash flow turned negative.