On July 22nd, the Hang Seng Index opened 0.61% lower, while the Hang Seng Tech Index fell by 0.71%.

The semiconductor sector displayed strength, with GIGADEVICE (ASX: 03986) rising over 3%, while Montage Technology and SMIC gained close to 2%.

Brokerage Perspectives on Market Outlook

Looking ahead, Huatai Securities suggests that as covering of hedge positions may be halfway through and short-selling funds are beginning to accumulate again, considering that A-shares and Korean stocks may gradually confirm a bottom and Hong Kong market sentiment indicators are slowly improving, a liquidity-driven rebound could be sustainable on a monthly basis. However, the core factor for a longer-term reversal may still hinge on the quality of fundamental recovery after the earnings season concludes.

Guoyuan International indicates that July and August remain the traditional critical period for peak summer power demand. If the subsequent high-temperature weather persists, residential cooling loads and commercial loads are still expected to rebound. Concurrently, high demand from industrial production, electric vehicle charging and battery swapping, and data centers will continue to provide underlying support. The assessment of the power sector's prosperity should still be based on the main theme of "stable total volume and structural upgrades."

CICC notes that since June, as the semiconductor (core stocks) sector began adjusting, global markets have entered a correction following a steep rally. The firm previously pointed out that the current major cycle has not yet ended, but the contradiction between financing enthusiasm and tight liquidity is becoming increasingly prominent. Coupled with high crowding and high leverage, before liquidity conditions ease, the market will enter a "half-time break" phase.