The Hang Seng Index declined by 0.17%, shedding 43 points to reach 25,824 points in morning trading. The Hang Seng Tech Index dropped by 0.81%. Morning session turnover on the Hong Kong market amounted to HKD 109 billion.

Storage-related stocks showed strength in the morning session, driven by overnight record highs for US memory stocks and ongoing supply crisis concerns. GigaDevice (03986) rose by 11%, while Montage Tech (06809) gained 6.8%.

AI large model concept stocks advanced. MINIMAX-WP (00100) surged over 12% following its collaboration with Tencent Cloud to stably operate a million-level Agent RL sandbox. Knowledge Atlas (02513) increased by more than 6%.

COSCO SHIP ENGY (01138) climbed over 5% again, as VLCC freight rates remain at extremely high levels, with analysts monitoring strait transit conditions. CF PHARMTECH (02652) rose more than 7%, as its innovative R&D pipeline for high-end respiratory formulations accelerates into a harvest phase.

GDS-SW (09698) jumped over 12% after reporting a 10% year-on-year increase in adjusted EBITDA last year and strong operational data. CHINA EAST EDU (00667) gained over 6% following a 47.5% rise in annual net profit and a final dividend of HKD 0.3.

FIT HON TENG (06088) surged another 16%, buoyed by strong AI demand driving high performance growth, amid reports of Nvidia's new rack potentially utilizing both optical and copper technologies. ZTO EXPRESS-W (02057) rose 7% after reporting an annual adjusted net profit of RMB 9.5 billion and authorizing a new USD 1.5 billion share repurchase plan.

JIAXIN INTL RES (03858) increased over 6%, having turned an annual loss into a profit exceeding HKD 300 million, supported by supply-demand imbalances pushing tungsten prices higher.

Automobile stocks experienced a collective pullback. With rapid price increases for upstream materials like metals and memory chips, car manufacturers may raise prices to offset cost pressures. Li Auto-W (02015) fell 6%, while XPeng-W (09868) dropped over 4%.

Smoore International (06969) declined more than 15% after its annual net profit decreased by approximately 18.5% to RMB 1.062 billion. Kingboard Laminates Holdings (01888) fell over 4% after being subject to a placement of up to 130 million shares by Kingboard Holdings at an 8.7% discount.