The three major Hong Kong stock indices showed a mixed performance in today's session.

At the close, the Hang Seng Index was down 0.37% at 24,565.90, while the Hang Seng Tech Index managed a 0.29% gain. The Hang Seng China Enterprises Index fell by 0.2%.

In terms of sector performance, technology and internet stocks were mixed. Lenovo Group Ltd rose more than 3%, with Tencent Holdings Ltd and Meituan gaining over 1%. Conversely, Bilibili Inc fell more than 2% and Alibaba Group Holding Ltd declined over 1%.

The semiconductor sector bucked the broader market trend, moving notably higher. Tianshu Zhixin Semiconductor Co Ltd surged more than 11%.

Oil and gas stocks were under pressure, with Shandong Molong Petroleum Machinery Co Ltd plunging over 17%.

Innovative drug concept stocks also weakened, as Wuxi Apptec shares dropped more than 3%.

Semiconductors Show Strength

Semiconductor stocks advanced against the market's downward trend, led by a more than 11% jump in Tianshu Zhixin Semiconductor Co Ltd.

A recent research note from a financial institution pointed out that while AI-related assets experienced volatility in the first quarter of 2026, hardware and semiconductor stocks linked to AI significantly outperformed the broader market from the second quarter of 2026 onward. This was driven by the rise of Agentic AI and continued upward revisions in capital expenditure by major cloud service providers.

The institution's statistics indicate that capital expenditure from major overseas cloud service providers is projected to increase by approximately 90% year-on-year in 2026. The report suggests there is further room for upward revisions in capital spending plans from mainland Chinese cloud service providers.

The institution has extended its forecast for the high-growth phase of the AI sector by 12 months, believing this robust momentum will persist at least until the end of 2027.

Energy Sector Under Pressure

Oil and gas stocks faced selling pressure, with Shandong Molong Petroleum Machinery Co Ltd leading the declines, down over 17%.

Market dynamics were influenced by geopolitical developments. Earlier, following mutual attacks between Iran and Israel, market bets on potential disruptions to oil supplies through the Strait of Hormuz pushed crude prices higher during the session.

However, as Iran announced an end to its military retaliation and the US pushed for a ceasefire, geopolitical tensions rapidly cooled. This led to a significant retreat in international crude oil prices from their intraday highs.

Pharmaceuticals Face Headwinds

Innovative drug concept stocks weakened, with Wuxi Apptec shares falling more than 3%.

Wuxi Apptec issued an announcement on the Hong Kong Stock Exchange, stating that the company noted on June 8, 2026 (US time), the US Department of Defense erroneously included Wuxi Apptec in the updated official list of "Chinese Military Companies" identified under Section 1260H.

The company believes that the inclusion of Wuxi Apptec in this updated list, along with the alleged basis for such determination, is clearly erroneous. Wuxi Apptec stated it will take immediate measures to challenge and correct this erroneous determination.