Hong Kong's three major stock indices showed a mixed performance in the morning session. At the midday close, the Hang Seng Index had declined by 0.11% to 24,148.53 points, while the Hang Seng Tech Index fell by 0.81%. The Hang Seng China Enterprises Index managed a slight gain of 0.12%.

Across the market, technology and internet stocks were predominantly lower, with JD.com rising over 1%, while Meituan dropped more than 2%. Lenovo and Bilibili also saw declines exceeding 1%. In contrast, oil sector stocks showed strength, with PetroChina advancing over 1%. Shares related to the PCB (Printed Circuit Board) concept faced significant pressure, with KB LAMINATES tumbling more than 15%. The semiconductor sector was among the worst performers, with GigaDevice Semiconductor plunging over 10%.

Oil Stocks Show Resilience

Oil-related shares were active during the session, with PetroChina gaining over 1%. This movement followed an escalation in tensions between the US and Iran over the weekend, with conflicting statements from both sides regarding navigation rights in the Strait of Hormuz. Iran claimed it would "indefinitely close" the strait, while US forces stated the waterway "remains navigable." This geopolitical development drove international oil prices significantly higher, with Brent crude futures briefly rising as much as 4% intraday.

PCB Sector Under Pressure

Stocks in the PCB (Printed Circuit Board) sector experienced a notable sell-off, led by KB LAMINATES which fell more than 15%. The decline was fueled by recent market speculation suggesting a potential delay in the shipment of the Rubin Ultra product until 2028. However, on July 11th local time, Morgan Stanley released notes from a non-deal roadshow with NVIDIA's management. NVIDIA CEO Jensen Huang, alongside CFO Colette Kress and other executives, met with institutional investors. During the discussions, Huang stated that the company's quarterly revenue is approaching $100 billion and that its growth rate continues to accelerate. He also denied rumors of a Rubin Ultra delay, confirming that shipments are on schedule for next year.

Semiconductor Sector Leads Declines

The semiconductor sector was a key laggard in the market, with GigaDevice Semiconductor dropping over 10%. South Korean brokerage KIS projected that SK Hynix's second-quarter operating profit would reach 60.4 trillion won, representing a 61% increase from the previous quarter and a surge of 556% year-over-year. Despite this strong growth, the estimate was approximately 8% below the market consensus forecast of 65 trillion won. The lower-than-expected projection is primarily attributed to SK Hynix's higher proportion of revenue coming from HBM (High Bandwidth Memory) compared to its peers, which has resulted in its average selling price increases lagging behind the broader market average.