Hong Kong’s Hang Seng Index climbed 1.37%, gaining 346 points to reach 25,657 points. The Hang Seng Tech Index also advanced by 2.2%. Morning trading volume in Hong Kong stocks totaled 173 billion Hong Kong dollars.

The Ministry of Industry and Information Technology is accelerating the formulation of the "15th Five-Year Plan" for intelligent connected vehicles, which drove automobile stocks to the forefront of gains. Li Auto-W (02015) surged 10%, leading the blue-chip stocks, while Chery Automobile (09973) rose 6.73%.

Intelligent driving concept stocks performed strongly, with the Ministry of Industry and Information Technology speeding up its planning for the sector. Institutions are optimistic about the acceleration of the popularization of intelligent driving. CiDi (03881) gained 8%, and Hesai Group-W (02525) rose 7%.

Southbound capital increased its holdings in Xiaomi through the Stock Connect, pushing Xiaomi Group-W (01810) up over 9%. Alibaba-W (09988) rose another 1.7%, following the release of the Qwen 3.8 model, which is seen as a key step in demonstrating its model iteration capabilities. The company is expected to benefit from the development of its AI cloud business.

Multiple factors drove the new consumption sector's strength. Bloks Group (00325) surged over 17%, and Mixue Group (02097) rose 7.34%. BYD Company (01211) gained nearly 5%, with its humanoid robot set to debut in August and export momentum expected to continue into the third quarter.

China Tobacco International (06055) rose over 7%, as the new duty-free tobacco policy has been implemented, solidifying its exclusive operating advantages. Evergrande Property Services (06666) gained 6% in morning trading, as the process to restart the sale of its controlling stake has been reignited, with potential buyers set to begin due diligence work soon.

Yangtze Optical Fibre and Cable (06869) fell over 8%, following Corning's weaker-than-expected Q3 guidance and a subsequent sharp drop in its stock price. Nanjing Panda Electronics (00553) dropped over 10%, as the company stated it has no mature products related to brain-computer interfaces.

GigaDevice Semiconductor (03986) fell another 10%, as consumer purchasing power has reportedly reached its limit, and the growth rate of DRAM prices in the third quarter is expected to slow. South Korea's KOSDAQ index experienced a sharp drop that triggered a circuit breaker, suspending trading. Samsung Hynix 2x Daily Long (07709) continued its steep decline, falling 25%.