The Hong Kong market continued its upward momentum today, with the Hang Seng Index surging 2.12% in a gap-up rally. The positive sentiment was primarily fueled by developments in the AI sector. Nvidia CEO Jensen Huang stated on Wednesday that China is poised to win the AI race due to favorable regulations and lower energy costs—his most explicit comment yet on the US-China AI competition. Meanwhile, SK Hynix confirmed completed negotiations with Nvidia for next-gen HBM4 memory supply at prices over 50% higher than HBM3E. Domestic chip substitution logic gained traction, with Hua Hong Semiconductor (01347) posting record Q3 revenue of $635.2 million and guiding Q4 revenue between $650-660 million. Its 12-inch wafer business now contributes 59.3% of total revenue. SMIC (00981) rose over 7%.
In AI applications, XtalPi (02228) announced a strategic collaboration with Eli Lilly for bispecific antibody discovery, gaining 8%. Data center-driven demand boosted Ceres Power's 20% surge after signing a SOFC manufacturing deal with Weichai Power (02338). Wasion Holdings (03393) expanded smart grid operations with new Malaysia production capacity. Aluminum producers like Chalco (02600) and China Hongqiao (01378) jumped over 10% on supply constraints and strong profits. Lithium players Tianqi Lithium (09696) and Ganfeng Lithium (01772) rose 5%+. Tesla's shareholder meeting spotlighted Musk's compensation vote, lifting supply chain stock Sanhua Intelligent (02050) 7%.
Robotics saw catalysts as XPeng (09868) unveiled its next-gen humanoid robot IRON, targeting mass production by 2026. Lens Technology (06613), receiving 10K quadruped robot orders, gained 6%. Johnson Electric (00179) rose nearly 7% after forming robotics JVs. Zijin Gold International (02259) surged 9% with industry-low production costs. Cathay Pacific (00293) advanced 4% on its $6.97B share buyback from Qatar Airways. Hainan Free Trade Port policies boosted China Tourism Group Duty Free (01880) and Meilan Airport (00357).
Sector Spotlight: The 2025 Shenzhen Nuclear Energy Expo will showcase next-gen fission/fusion technologies. Key plays include Tiangong International (00826) and Shanghai Electric (02727).
Stock Pick: KB Laminates (01888) benefits from PCB industry upcycle and CCL price hikes. H1 revenue grew 11% to HK$9.59B with 28% profit growth. Its leadership in high-end materials like HVLP3 copper foil and low-dk glass yarn positions it for sustained growth amid strong AI-driven PCB demand.