The performance of Hong Kong's three major stock indices was mixed on Thursday. The Hang Seng Tech Index initially rose before turning lower in the morning, while the benchmark Hang Seng Index managed to edge into positive territory by the close.

The Hang Seng Index gained 0.16%, or 38.6 points, to finish at 24,213.72, with a total turnover of HK$309.515 billion. The Hang Seng China Enterprises Index rose 0.33% to 8,065.97, while the Hang Seng Tech Index fell 0.96% to 4,676.43.

Key Blue-Chip Movers

CHINAHONGQIAO (01378.HK) led the blue-chip gainers. Its shares closed up 3.57% at HK$21.48, with a turnover of HK$1.43 billion, contributing 3.97 points to the Hang Seng Index. The company issued a profit alert, expecting its net profit for the first half of 2026 to increase by approximately 39% year-on-year, primarily due to higher average selling prices for its aluminum alloy products compared to the same period in 2025. Detailed financial results are scheduled to be announced by the end of August 2026.

Among other blue chips, Longfor Group Holdings Ltd (00960.HK) rose 3.28% to HK$6.30, contributing 0.79 index points. China Resources Beer (Holdings) Company Limited (00291.HK) gained 3.24% to HK$22.92, adding 1.8 points. On the downside, China Life Insurance Company Limited (02628.HK) fell 3.17% to HK$27.52, weighing on the index by 10.26 points. Xinyi Glass Holdings Limited (00868.HK) declined 2.93% to HK$8.28, dragging the index down by 0.85 points.

Sector Performance Overview

Major technology stocks were mixed, with JD.com, Inc. (09618.HK) rising nearly 3% and Kuaishou Technology (01024.HK) gaining over 1%, while Tencent Holdings Limited (00700.HK) dipped 0.56%.

The South Korean stock market triggered circuit breakers twice during the session, with SK Hynix plunging over 15%, its largest drop on record. This dragged down related memory chip concepts in Hong Kong. AI hardware sectors like PCBs and optical communications also declined. The commercial aerospace concept pulled back, with related stocks falling sharply. Escalating tensions between the US and Iran pressured airline and gold stocks but boosted oil and gas equipment shares. Some catering, pharmaceutical, and mainland bank stocks advanced.

Top Declining Sectors

1. Memory Chip Concepts

Memory-related stocks were among the biggest decliners. By the close, CSOP 2X LONG SK HYNIX ETN (07709.HK) plummeted 33% to HK$59.90. CSOP 2X LONG SAMSUNG ELECTRONICS ETN (07747.HK) dropped 20.09% to HK$89.14. GIGADEVICE (03986.HK) fell 15.29% to HK$629.00. Montage Technology Co., Ltd. (06809.HK) declined 5.19% to HK$332.20.

The sell-off followed sharp losses in South Korea's stock market, where SK Hynix closed down 15.37% and Samsung Electronics fell over 10%. A local Korean brokerage, KIS, released a forecast report downgrading its second-quarter earnings expectations for SK Hynix. It projected an operating profit margin of 65%, down 8 percentage points quarter-on-quarter. The decline was attributed to a higher shipment mix of High Bandwidth Memory (HBM) relative to the overall market, leading to a lower average selling price (ASP) than the market average.

Top Gaining Sectors

2. Oil and Gas Stocks

Oil and gas equipment shares were active gainers. Allied Oilfield Services Ltd (02178.HK) surged 16.47% to HK$0.198. SHANDONG MOLONG (00568.HK) jumped 11.18% to HK$5.47. China Oilfield Services Limited (02883.HK) rose 2.93% to HK$6.68.

The rally was fueled by escalating US-Iran tensions, which pushed oil prices higher, with WTI crude futures briefly rising over 5%. On July 12 local time, US forces launched attacks on multiple locations in Iran, citing Iranian attacks on commercial ships. This marked the fourth round of US strikes against Iran within a week. In response, Iran launched a large-scale drone and missile attack on US military targets in the Gulf region in the early hours of July 13. Over the weekend, Iran declared the Strait of Hormuz "indefinitely closed," although the US Central Command stated the waterway remained open to all vessels.

3. Traditional Chinese Medicine (TCM) Concepts

TCM-related stocks moved higher. Luye Pharma Group Ltd. (02186.HK) gained 8.33% to HK$2.08. Shineway Pharmaceutical Group Limited (02877.HK) increased 3.13% to HK$7.91. China Traditional Chinese Medicine Holdings Co. Limited (00570.HK) rose 2.1% to HK$1.46.

The gains followed the State Council's approval in principle of the "15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine," which outlines a top-level roadmap for the coordinated development of TCM over the next five years. Additionally, the new "National Essential Medicine List (2026 Edition)" was recently issued and will take effect on September 1. This is the first comprehensive update since the 2018 edition, listing 794 drugs. For the first time, the selection mechanism included innovative drugs as a direction, incorporating four domestically developed Class 1 innovative drugs.

Notable Stock Movements

True Health Medical-B (02697.HK) hit a new high, closing up 31.61% at HK$478.80. The company's core products are percutaneous surgical robots. All four models have obtained Class III medical device registration certificates from China's NMPA for lung and abdominal punctures. According to Frost & Sullivan, the company ranked first in China by revenue from percutaneous surgical robots in 2025, with a 28.0% market share.

BASICSEMI (09971.HK) remained strong throughout the session, closing up 10.29% at HK$38.80. The company announced that, due to sustained demand growth driven by global AI and new energy vehicle applications in 2026, leading to a tight supply-demand balance, it will moderately adjust the selling prices of some products starting Q3 2026, with expected increases of up to 25%.

Bama Tea (06980.HK) issued a positive profit alert, closing up 7.65% at HK$20.40. The company expects revenue for the six months ending June 30, 2026, to increase by no less than 30% year-on-year, with attributable net profit growing by no less than 60%, driven by expansion in franchise, online, and key account channels.

INSILICO (03696.HK) continued its upward move, gaining 4.95% to close at HK$44.94. The company announced a new AI-driven drug discovery collaboration with CMS Pharma in the central nervous system field, targeting a high-market-value indication. Insilico could receive up to approximately RMB 1.2 billion in milestone payments and royalties on net sales.

Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869.HK) saw its A-shares and H-shares fall, with the H-shares closing down 12.58% at HK$139.70. Significant increases in fiber optic prices and an industry supply-demand gap are prompting multiple companies to initiate capacity expansion plans for preforms and fibers.

Guangzhou Automobile Group Co., Ltd. (02238.HK) issued a profit warning, closing down 6.85% at HK$2.04. The group expects a net loss between RMB 4.06 billion and RMB 4.57 billion for the first half of 2026, representing a year-on-year increase of 60% to 80%. The net loss for the second quarter alone is estimated to be between RMB 3.404 billion and RMB 3.914 billion, widening from a net loss of RMB 656 million in the first quarter.