At midday, Hong Kong's three major stock indices all recorded gains. By the close of the morning session, the Hang Seng Index had risen 0.83% to 23,542.97, the Hang Seng Tech Index advanced 1.16%, and the Hang Seng China Enterprises Index climbed 1.1%.

Across the market, technology and internet stocks saw broad-based increases, with Kuaishou-W (HKEX: 01024) surging more than 5%. Tencent Holdings Ltd. (HKEX: 00700) gained over 3%, while Meituan (HKEX: 03690), NetEase, Inc. (HKEX: 09999), and Xiaomi Corporation (HKEX: 01810) all rose more than 2%.

Power equipment stocks were among the top performers, with Dongfang Electric Corporation Limited (HKEX: 01072) jumping over 7%.

Innovative drug concept stocks were active, with Sino Biopharmaceutical Ltd. (HKEX: 01177) climbing more than 7%.

Conversely, PCB (Printed Circuit Board) concept shares declined, with KB Laminates Holdings Ltd. (HKEX: 01888) falling more than 9%.

Power Equipment Sector Leads Gains

The power equipment sector was a notable leader in the morning's gains, with Dongfang Electric Corporation Limited (HKEX: 01072) rising over 7%. The sector is benefiting from a confluence of factors, including surging demand for AI computing power and an accelerating global push to upgrade electricity grids, which is propelling the industry into a new phase of growth. A recent report from the International Energy Agency forecasts that global investment in power supply and infrastructure will approach $1.6 trillion by 2026. Of this total, grid investment is expected to reach nearly $550 billion, representing a year-on-year increase of almost 20%.

Innovative Drug Stocks Show Strength

Innovative drug concept stocks were active in the session. Sino Biopharmaceutical Ltd. (HKEX: 01177) saw its shares increase by more than 7%. This movement follows a draft announcement from China's National Medical Products Administration seeking public feedback on optimizing the review and approval process for cell and gene therapy products. The draft proposes supporting clinical value-oriented R&D and innovation in this field and including eligible products in a 30-day fast-track review channel for clinical trials. It is worth noting that the pharmaceutical sector has seen a flurry of policy activity this year. Additionally, data from a pharmaceutical industry source indicates that the total value of Chinese pharmaceutical outbound licensing deals in the first half of 2026 reached $99.7 billion, which is 1.9 times the full-year 2024 figure of $52.2 billion and approximately 73% of the full-year 2025 total of $135.7 billion.

PCB Concept Shares Under Pressure

PCB concept stocks experienced a downturn, with KB Laminates Holdings Ltd. (HKEX: 01888) dropping over 9%. The decline followed reports from semiconductor industry research firm SemiAnalysis, which published a series of articles on social media this morning suggesting that Nvidia's Kyber NVL144 rack architecture may face delays. The firm stated, "Just three months after Jensen Huang showcased Kyber NVL144 at GTC, the product has encountered a significant setback and been delayed by over 12 months, pushing its launch to 2028." The research firm attributed the potential delay to "significant challenges remaining in the manufacturing process for the PCB mid-board."