Hong Kong's stock market rebounded in early trade on August 17, with major indices ending their recent downward trend. The Hang Seng Index opened at 25,303.41 points, up 186.56 points, a gain of 0.74%. The Hang Seng Tech Index started the session at 4,761.20 points, rising 53.58 points, or 1.14%.
Gold-related stocks led the market gains. Laopu Gold Co Ltd (HK: 06181) surged over 4%, while China Gold International Resources Corp Ltd, Zhaojin Mining Industry Co Ltd, Lingbao Gold Group Co Ltd, and Shandong Gold Mining Co Ltd all advanced more than 3%. This upswing follows international gold prices breaking through the $4,400 per ounce mark, with the latest quote reaching $4,473 per ounce. Additionally, ahead of the Qixi Festival, Laopu Gold launched rare discount promotions across its top-tier stores, including Beijing SKP, Shanghai IFC and Plaza 66, Guangzhou Taikoo Hui, Shenzhen Mixc, Wuhan SKP, and Xi'an SKP, as well as online channels. This move is highly unusual for the company, which is often dubbed the "Hermès of the gold world" and typically maintains a no-discount policy.
Among the standout stocks, Sensetime Group Inc (HK: 00020) jumped over 11% in early trading. The company announced last night that it expects to record a profit of approximately RMB 500 million to RMB 700 million for the first half of 2026, compared to a loss of RMB 1.489 billion in the same period of 2025. It also forecast a 60% to 70% reduction in its adjusted net loss for the first half of 2026 versus the first half of 2025, signaling significant progress in its performance turnaround. This marks Sensetime's first profitable period since its listing on the Hong Kong Stock Exchange in 2021. The company attributed the expected improvement to lower losses in its core business segments and gains from the fair value changes of its strategic investments in the AI ecosystem, which have been built over several years.
In other sectors, technology and internet stocks rose broadly. JD.com Inc gained over 3%, and Lenovo Group Ltd climbed more than 2%. Chip stocks opened higher, with Montage Technology Co Ltd adding over 1%. AI application stocks were active, with MiniMax rising more than 2%.
Looking ahead, China Galaxy Securities believes the current Hong Kong market rally is more akin to a valuation recovery after being oversold, rather than the start of a typical bull market. The brokerage suggests the market is in the middle-to-late stage of this rebound, with its risk-reward ratio having declined since the end of June. For existing investors, it recommends using the rally to optimize portfolio holdings or gradually lock in profits. For new capital, the firm advises waiting for clear positive signals regarding sentiment, valuation, liquidity, or fundamentals before entering. Key focus areas include the interim earnings season in late August and the policy expectations surrounding the US Federal Reserve's meeting in September. Whether Hong Kong stocks can transition into a sustainable bull market will depend on a dual improvement in both fundamentals and liquidity. This requires interim reports to validate key signals such as internet profitability and AI application revenue, while changes in US dollar liquidity will directly impact the valuation denominator of Hong Kong stocks.