The Hang Seng Index fell 1.13% during the morning session, shedding 268 points to reach 23,500. The Hang Seng Tech Index also declined, dropping 2.21%. Trading volume for Hong Kong stocks in the morning session reached HK$176.9 billion.

SMARTCHIP MICROELECTRONICS TECHNOLOGY GROUP LTD (02166) surged over 23% after announcing plans to raise approximately HK$291 million through a discounted share placement. The funds are intended for expanding its memory and optoelectronic product businesses.

NATIONAL CHIP (02701) gained more than 17%. The increase comes amid a general rise in prices for MCU (Microcontroller Unit) products, and the company is reportedly continuing to track advancements in CPO (Co-Packaged Optics) technology.

Insilico Medicine Hong Kong Ltd (03696) rose another 9% following news of an AI-driven drug discovery collaboration with SK Bioscience. The potential total value of the deal exceeds US$2.5 billion.

Shandong Xinhua Pharmaceutical Company Limited (00719) advanced over 11% after its Class 1 innovative drug, LXH-2103, received approval for clinical trials.

Sihuan Pharmaceutical Holdings Group Ltd. (02005) climbed more than 6%. Its subsidiary recently entered into a cooperation agreement with Opterion to introduce the innovative kidney disease drug OPT101.

China COSCO Shipping Energy Transportation Co., Ltd. (01138) continued its rise, adding over 5%. VLCC (Very Large Crude Carrier) spot rates on the Middle East route have reportedly surged above US$70,000 per day.

Top Education Group Ltd (01752) saw volatile trading, initially soaring over 106% before paring gains to a more than 40% increase by midday. The company attributed the movement to an increase in student enrollment, with tuition fees constituting over 90% of its revenue.

Shenzhen Senior Technology Material Co., Ltd. (06067) made its market debut, jumping over 30% in early trading. The company has ranked second globally in lithium-ion battery separator shipments for six consecutive years.

JW (Cayman) Therapeutics Co. Ltd (06132) had a difficult first day of trading, plunging 46% by the midday break. Its total market capitalization fell below HK$3.5 billion. The company currently has no products approved for commercial sale.

Key Sector Moves

Copper-related stocks were among the worst performers. Market sentiment was pressured by the high probability of the Cobre Panama mine restarting and ongoing attention to potential US copper tariff policies. China Molybdenum Co., Ltd. (03993) dropped 8.7%, while Jiangxi Copper Company Limited (00358) fell 7.8%.

Gold stocks extended their losses as spot gold briefly dipped below $2,150 per ounce. Analysts from Bank of America and Deutsche Bank both anticipate the US Federal Reserve will implement interest rate hikes this year. Zijin Mining Group Company Limited (02259) declined 5.9%, and Chifeng Jilong Gold Mining Co., Ltd. (06693) was down 4.3%.

Jiangsu Aosaikang Pharmaceutical Co., Ltd. (02617) plummeted 58%. The decline coincides with the one-year anniversary of its listing, triggering the end of a lock-up period for certain shares. The company has also conducted three share placements to raise funds this year.