The U.S. stock market saw the S&P 500 and Nasdaq indices hit new highs overnight due to continuous positive signals, which naturally influenced domestic markets. Hong Kong stocks opened higher today, rising 1.57%. Reports suggest the U.S. and Iran are nearing a "14-point, one-page memorandum" as a preliminary framework to end the conflict between the two nations. Former U.S. President Trump expressed optimism about reaching an agreement, stating that the Iran war is "very likely to end." However, with Iran's lead negotiator Araghchi still visiting China, it remains unclear who the U.S. is negotiating with. Iranian state media accused Western journalists of possibly spreading false information to manipulate markets for profit, but the truth may be less important than market sentiment, as capital markets tend to respond to perceived developments. Attention should also be paid to the Russia-Ukraine situation: Russia’s Defense Ministry announced a temporary ceasefire from May 8 to 9 and urged Ukraine to follow suit. It also warned that if Ukraine attacks Moscow during Victory Day celebrations, Russia would launch large-scale missile strikes on central Kyiv and advised civilians and foreign diplomats to evacuate. Restraint from both sides is crucial, as escalated conflict could pressure global markets.
According to Iranian media, the Islamic Revolutionary Guard Corps Navy has designated two shipping lanes for vessel passage, though unauthorized transit through the Strait of Hormuz remains prohibited. Oil prices declined, leading to weakness in energy-related sectors, including new energy lithium batteries. PetroChina (00857) and Longpan Technology (02465) both fell over 8%. Lower oil prices benefit airlines by reducing operating costs; today, Air China (00753), China Southern Airlines (01055), and China Eastern Airlines (00670) rose around 5%. Gold stocks also strengthened, supported by data from the People’s Bank of China showing gold reserves increased by 260,000 ounces in April, marking the 18th consecutive month of growth since November 2022. Lingbao Gold (03330) and Chifeng Gold (06693), mentioned previously, rose about 7%, while jewelry retailer Saturday福 (06168) surged nearly 19%.
Mainland A-shares have performed strongly recently, with trading volume exceeding 3 trillion yuan for two consecutive days. In contrast, Hong Kong stocks lagged, particularly large caps, which showed signs of activity today. Kuaishou (01024) rose over 7% after its AI feature enabled 4K output, Alibaba (09988) gained nearly 5%, and Tencent (00700) climbed over 3%. The Philadelphia Semiconductor Index recorded its strongest five-week rolling performance since March 2000, surging more than 50% during the period. Tech stocks are advancing due to intense international competition and supply chain integration, with companies like Montage Technology (06809) rising over 11% and Biren Technology (06082) jumping nearly 15% on expectations for high-performance chips. Hua Hong Semiconductor (01347) gained over 8%. In the PCB sector, Kingboard Laminates (01888) announced a 10% price increase for FR-4 copper-clad laminates and PP sheets, pushing its shares up over 8%. In fiber optics, Corning’s partnership with NVIDIA to expand U.S. optical connectivity capacity boosted Changfei Optical Fiber (06869) over 7%.
As hardware gains momentum, application-side developments are also accelerating. With the cost of general AI models plummeting and computing power becoming commoditized, value is shifting toward "scene tokens" that transform affordable compute into high-value outcomes. Maifushi (02556), a leader in AI marketing with a 52% market share in GEO applications, rose nearly 13%. Wu Yishijie (06651), which provides realistic simulation environments for AI, appeared as the sole Chinese company in NVIDIA’s partner list for advanced autonomous driving simulation and gained over 13%. Robotics concepts also advanced after Elon Musk confirmed Optimus robots will begin production in late July or August, with Tesla placing batch orders. Companies like Ubtech (09880) are accelerating humanoid robot deployments in factories, while Woan Robotics (06600) focuses on home use, Geekplus-W (02590) on warehouse logistics, and Yuejiang (02432) on embodied AI products. Geekplus-W (02590) reported robust 2025 revenue of 31.71 billion yuan, up 31.6%, with 75.3% from overseas sales and a 46.6% gross margin. It achieved positive adjusted net profit and strong operating cash flow, aiming to establish fully automated warehouse solutions. Its shares rose over 15%. Other gainers included Estun (02715) and Sanhua Intelligent Controls (02050), up over 6%.
AI unicorn Anthropic announced a major collaboration, leasing all computing capacity from SpaceX’s Colossus1 data center, which previously supported xAI’s Grok training. This partnership advances the concept of orbital data centers. Solar space concept stock Junda (02865), a May top pick, rose over 8%. Additionally, potential U.S.-China leader talks in May may ease restrictions on photovoltaic equipment, boosting stocks like Flat Glass (06865), up over 7%, and Xinyi Solar (00968), up nearly 5%.
The National Health Commission and seven other departments issued implementation opinions on improving the supply of pediatric medications, proposing 16 measures to enhance R&D, clinical use, and distribution. This benefits related Hong Kong stocks such as CMS (00867), SBP Group (01177), United Lab (03933), Hansoh Pharma (03692), and Innovent Bio (01801).
Shenghong Technology (02476) reported strong Q1 2026 results, with revenue up 27.99% and net profit rising 39.95%. As a global leader in AI server PCBs, it holds a 13.8% market share and over 50% in 1.6T optical module PCBs. The company is capable of producing high-layer HDI and multilayer boards with superior yield. Its AI and automotive electronics businesses drive high margins, with AI revenue surging 1,100% in 2025. It is a key supplier for NVIDIA and Google, with ample orders covering 2.3 times its capacity. Expansion in惠州, Thailand, and Vietnam will double total capacity by year-end, supporting continued growth.