The Hang Seng Index fell 0.93%, dropping 236 points to 25,160 in morning trading, while the Hang Seng Tech Index declined 1.79%. Hong Kong stocks recorded a morning session turnover of HK$135.7 billion.

Memory concept stocks led the gains, driven by SanDisk's long-term financial guidance significantly exceeding market expectations. The surge in AI demand is expected to extend the memory industry's cyclical upswing. CSOP Double Long SK Hynix (07709) rose 9%, CSOP Double Long Samsung Electronics (07747) gained 4%, GigaDevice (03986) increased 2%, and Montage Technology (06809) added 1%.

Mafangshi (02556) surged over 10% after reporting a 4.6-fold increase in first-half net profit year-on-year, with its AI application business emerging as the core growth engine. Xunce (03317) jumped more than 7% to lead the AI application sector, posting a 389% surge in first-half revenue, with the commercialization of its Token economy far exceeding expectations.

Impro Precision (01286) climbed over 7% intraday after the company raised its full-year performance growth guidance, expecting AI-related products to continue their strong growth trajectory. Weilong Delicious (09985) rose more than 7% following its earnings release, with first-half revenue growing 6.7% and a dividend payout ratio reaching 90%.

Bloks (00325) extended its gains by 10%, as its interim net profit grew 30% year-on-year, marking its first dividend payment since listing. Modern Dental (03600) jumped over 12% after forecasting a more than 30% increase in first-half net profit, with strong performance in Europe and Australia.

On the downside, CK Hutchison Holdings (00001) fell over 5% despite a surge in interim net profit driven by the monetization of UK assets, as the company stated it will maintain a cautious strategy in the second half. CK Asset Holdings (01113) dropped 7% even after reporting a 5% rise in first-half core profit, with Bank of America noting that the absence of a special dividend could disappoint the market.

Hua Hong Semiconductor (01347) plunged 11% after reporting record second-quarter revenue, though Goldman Sachs pointed out that its third-quarter revenue guidance fell short of expectations.