Hong Kong's three major stock indices posted gains on August 7. By the close, the Hang Seng Index rose 0.54%, the Hang Seng Tech Index climbed 0.78%, and the State-owned Enterprises Index added 0.39%.

Tech stocks showed mixed results, with LENOVO GROUP surging over 8% while BILIBILI-W fell more than 1%. PCB concept stocks were strong, with KB LAMINATES advancing over 9%. Biotech stocks rallied sharply, with ZAI LAB jumping more than 18%. AI application stocks were active, with Z.AI rising over 14%, and HEARTCARE-B surged over 64% on its debut day.

Key drivers behind the PCB concept rally

Goldman Sachs believes that AI computing infrastructure is diversifying from GPUs to ASICs, and cloud vendors' self-developed chips will become a major source of demand growth for PCBs and CCLs. AI server upgrades are driving structural changes in PCB and CCL products, with the penetration rate of PCBs over 30 layers, HDI, and high-end M9 materials expected to rise rapidly. Despite ongoing capacity expansion in the supply chain, high-end PCBs and copper-clad laminates still face tight supply-demand dynamics.

Factors fueling the biotech surge

In the first half of 2026, the total value of Chinese innovative drug license-out deals reached approximately $99.7 billion, about double the full-year figure for 2024. Meanwhile, several innovative drug companies released positive first-half results. ZAI LAB raised its full-year operating profit forecast, while HEARTCARE-B and others reported significantly improved performance, leading to a rebound in market allocation toward innovative drugs and valuation recovery opportunities.

Reasons for AI application stock strength

Domestic large-model leader DeepSeek recently announced plans to significantly increase API service prices, with a substantial rise expected and a specific plan to be announced later. As a key force that previously drove industry price reductions, DeepSeek's decision to hike prices has directly sparked strong market expectations for a restructuring of the large-model industry's pricing system and improved commercialization prospects. Market analysts point out that DeepSeek's planned API price increase is a critical signal for the commercialization of domestic large models, with industry competition likely shifting from "low-price market share grabbing" to comprehensive competition in capabilities, scenarios, cost efficiency, and monetization.

HEARTCARE-B's strong debut

On its first trading day, HEARTCARE-B surged over 64%. During the public offering phase, the stock was oversubscribed by 2,513.54 times, with the final number of public offering shares set at 5,759,500, representing about 10% of the total shares offered. A total of approximately 161,100 valid applications were received, with about 40,300 applications processed. The allocation rate for investors applying for one board lot was approximately 8%.