Hong Kong's three major stock indexes closed mixed on September 16, with semiconductor stocks staging a powerful rally and optical communication concept stocks gaining strength. Lenovo Group Ltd (HKEX: 0992) jumped more than 8% amid bullish AI-related business momentum.
Ahead of the Federal Reserve's policy meeting, the Hong Kong market exhibited a cautious and wait-and-see stance early in the session. The Hang Seng Index initially opened higher before dipping, then recovered to close up 0.19% at 24,713.78 points. The Hang Seng Tech Index rose 0.79% to 4,325.45 points, while the Hang Seng China Enterprises Index edged up 0.02% to 8,206.37 points.
Sector rotation was clearly visible, with capital flooding into semiconductor and AI hardware supply chains. Optical communication names followed suit, and AI application stocks rebounded. Gold-related shares climbed in tandem with firmer bullion prices. On the downside, Contemporary Amperex Technology Co Ltd (CATL) (SZSE: 300750) slipped nearly 3%, falling below the HK$500 threshold and dampening sentiment across the battery sector. Major tech heavyweights were mostly softer, with Tencent Holdings Ltd (HKEX: 0700), Alibaba Group Holding Ltd (HKEX: 9988), Meituan (HKEX: 3690), Xiaomi Corp (HKEX: 1810) and JD.com Inc (HKEX: 9618) all closing in negative territory.
Where the action was
Hong Kong-listed chipmakers exploded higher on September 16, fueled by reports that Apple has accepted memory chip price increases from Samsung and by Dell's warning that chip supply shortages could worsen. Hua Hong Semiconductor Ltd (HKEX: 1347) surged 5.87%, Montage Technology Co Ltd (SSE: 688008) added 5.46%, Semiconductor Manufacturing International Corp (SMIC) (HKEX: 0981) climbed 4.77%, and Innoscience (HKEX: 0257) gained 4.59%. Biren Technology and Tianshu Zhixin also advanced in tandem.
In the optical communication space, HiLight Semiconductor soared more than 16%, while CIG (Cambridge Industries Group) jumped over 10%.
Recent calls from some US AI giants for a "slowdown" had sparked worries about easing AI capital expenditure. However, former President Donald Trump and Nvidia CEO Jensen Huang have both stepped up to champion the acceleration camp. Huang argued that AI safety does not require special legislation, saying market mechanisms are sufficient, and dismissed "AI doomsday" theories as scientifically unfounded alarmism.
A Citi research report noted that market concerns over reduced AI spending are clearly overdone. The bank believes sustained growth in AI inference demand, coupled with persistent supply tightness, will support further expansion of capital investment across the entire AI ecosystem.
Lenovo jumps on record AI order book
Lenovo Group Ltd (HKEX: 0992) surged more than 8% on September 16 to HK$33.80 per share, bringing its total market capitalization to HK$419.619 billion.
On the news front, Song Chunyu, Vice President of Lenovo and Chief Investment Officer of Lenovo Capital, stated that while global AI investment enthusiasm is running high, the technology is still in its early innings from a technological and industrial cycle perspective, representing just the nascent phase of the fourth industrial revolution.
Lenovo's previously released fiscal first-quarter results showed revenue up 43% year-on-year to US$26.9 billion, a record for a single quarter. Adjusted profit attributable to equity holders surged 176% to US$1.075 billion, with the adjusted net profit margin reaching 4%. The company's AI business is growing rapidly with a robust order pipeline. Its AI server backlog jumped from RMB 140 billion in the prior quarter to RMB 360 billion. AI-related revenue climbed 60% year-on-year to RMB 63.4 billion, also hitting an all-time high.