Markets focused on Powell's speech at the global central bank annual meeting, while technology stocks drove Hong Kong equities higher, with the Hang Seng Tech Index surging nearly 3% today.

At market close, the Hang Seng Index gained 0.93% or 234.53 points to 25,339.14, with total turnover reaching HK$285.584 billion. The Hang Seng China Enterprises Index rose 1.17% to 9,079.93 points, while the Hang Seng Tech Index climbed 2.71% to 5,647.68 points.

For the week, the Hang Seng Index accumulated a 0.27% gain, the China Enterprises Index rose 0.45%, and the Tech Index advanced 1.89%.

Analysts maintain an optimistic outlook for the Hong Kong stock market. Current data shows improving interim earnings for Hong Kong stocks, with the earnings beat ratio reaching a three-year high. Hong Kong stocks with higher "new economy" content may see earnings improvements ahead of A-shares.

**Blue Chip Performance**

SMIC (00981) led blue chip gainers, closing up 10.06% at HK$56.9 with turnover of HK$16.409 billion, contributing 36.87 points to the Hang Seng Index.

DeepSeek officially released its DeepSeek-V3.1 large language model on August 21, utilizing UE8M0 FP8 Scale parameter precision designed for next-generation domestic chips. Securities firms believe this development could accelerate domestic computing power autonomy. The surge in domestic AI chip demand and localization trends for edge computing chips are expected to drive SMIC's performance beyond expectations.

Other blue chip movements included Li Ning (02331) up 8.78% to HK$19.7, contributing 5.73 points to the index; BYD Electronic (00285) gained 6.13% to HK$39.5, adding 2.77 points; while China Petroleum & Chemical Corporation (00386) fell 1.78% to HK$4.41, dragging the index down 3.04 points.

**Sector Highlights**

**1. Chip Stocks Rally** Semiconductor stocks surged collectively. Hua Hong Semiconductor (01347) jumped 17.85% to HK$56; ZTE (00763) rose 15.13% to HK$36.06; SMIC (00981) gained 10.06% to HK$56.9; and Shanghai Fudan Microelectronics (01385) advanced 6.36% to HK$31.76.

DeepSeek's V3.1 model announcement highlighted its use of UE8M0 FP8 Scale parameter precision, specifically designed for upcoming domestic chips. Reports of Nvidia suspending H20 chip production have refocused attention on domestic alternatives.

**2. Aviation Stocks Decline** Airlines led declines with Air China (00753) down 5.13% to HK$5.18; China Eastern Airlines (00670) fell 2.83% to HK$3.09; and China Southern Airlines (01055) dropped 1.77% to HK$3.89.

July operational data from listed carriers showed domestic capacity up 2.3% year-on-year but load factors indicating weaker-than-expected peak season demand.

**3. Earnings-Driven Rallies Continue** Strong interim results drove several stocks higher: MNSO (09896) surged 20.58% to HK$47.1 following Q2 revenue growth of 23.1% to RMB4.97 billion; ROBOSENSE (02498) jumped 13.1% to HK$39.02 after Q2 revenue rose 24.4% to approximately RMB460 million; Li Ning (02331) gained 8.78% on first-half revenue growth of 3.3% to RMB14.817 billion; and Kuaishou (01024) rose 4.39% to HK$74.9 after Q2 revenue increased 13.1% to RMB35 billion.

**Notable Stock Movements**

**XPENG-W (09868)** rallied 13.6% to HK$91.9 after Chairman He Xiaopeng purchased 3.1 million A-class ordinary shares for approximately HK$250 million on August 20-21, his first share purchase in a year.

**NIO-SW (09866)** climbed 11.12% to HK$45.76 following the launch of its new ES8 with pre-sale pricing starting at RMB416,800 for outright purchase or RMB308,800 with battery rental service.

**COSCO SHIPPING Energy Transportation (01138)** gained 7.63% to HK$7.19 amid reports of additional U.S. tariffs on Indian crude oil imports, potentially boosting compliant crude oil demand.

**IFBH (06603)** plummeted 14.08% to HK$34.54 despite reporting 31.49% revenue growth to US$94.464 million for the interim period, as gross margin declined to 33.7% from 38.4% in the prior year.

Technology giants posted broad gains with Kuaishou rising over 4% post-earnings, Alibaba up nearly 2%, and Tencent advancing over 1%. Auto stocks were mostly higher, while infrastructure, solar, and coal stocks weakened alongside aviation shares.