Hong Kong's three major stock indices posted collective gains during the morning session. By the midday close, the Hang Seng Index had risen 2.07% to 25,070.87 points. The Hang Seng Tech Index climbed 2.91%, and the Hang Seng China Enterprises Index advanced 2.74%.

Market Overview and Leading Sectors

Technology stocks were broadly higher. Alibaba (BABA) surged over 5%, while Bilibili Inc. gained more than 4%. Shares of Meituan, Tencent Holdings Ltd, Kuaishou Technology, and NetEase, Inc. all rose over 3%.

Oil stocks were among the top performers, with CNOOC Ltd jumping more than 5%. This movement follows conflicting statements from the US and Iran regarding traffic through the Strait of Hormuz on July 19th. US officials stated that vessels were still transiting the strait normally, while Iranian authorities claimed traffic had dropped to zero. On the same day, US military forces conducted strikes on Abadan, a key Iranian oil hub, following another round of airstrikes on Iran.

Biotech and Communications Sector Activity

Innovative drug concept stocks saw a rebound, with IMMUNOTECH-B (06978) soaring over 8%. At a State Council Information Office press conference, Tao Qing, spokesperson for the Ministry of Industry and Information Technology, noted that 38 innovative drugs were approved for market in the first half of the year. Of these, 31 were domestically developed, accounting for over 80%. Notably, outbound technology licensing for innovative drugs reached a new high, with total deal value exceeding $100 billion in H1, demonstrating a systematic leap in the innovation quality of China's pharmaceutical industry.

The optical communications sector was also active. Changfei Optical Fiber and Cable Co., Ltd. surged more than 8%. The sector is witnessing an AI computing power-driven upcycle, as evidenced by a series of positive earnings forecasts for the first half of 2026 from companies across the fiber optic cable, optical module, and optical component segments. Profitability has improved broadly, though the gap between industry leaders and smaller players is widening. Despite recent significant pullbacks in share prices for many companies, underlying industry demand remains robust with strong order visibility, indicating the sector's high-growth trajectory and the leading firms' growth logic remain intact.