The Hang Seng Tech Index fell nearly 2% during the session, with major internet companies trending lower. The nonferrous metals sector showed strong activity, while the semiconductor segment experienced a sharp upward surge.

On February 16, Hong Kong stocks opened slightly lower in early trading: the Hang Seng Index dropped 0.25%, the Hang Seng Tech Index declined 0.19%, and the Hang Seng China Enterprises Index fell 0.08%. The market subsequently fluctuated and declined, with the Hang Seng Tech Index at one point falling nearly 2%. As of the time of writing, the losses of the three major indices had narrowed somewhat.

In terms of sector performance, precious metals, semiconductors, and oil & petrochemicals defied the downward trend and showed strength. In contrast, defense & aerospace, discretionary consumption, and hardware equipment sectors were weak. Major internet companies generally moved lower.

Here are the better-performing sectors and individual stocks during the morning session:

The nonferrous metals sector bucked the market trend and strengthened. On February 16, Hong Kong's nonferrous metals sector led the gains. CMOC rose over 7%, Lingbao Gold climbed over 6%, while China Nonferrous Mining, Shandong Gold, Jiangxi Copper, and MMG followed with increases.

In terms of market news, coinciding with Valentine's Day and the Spring Festival holiday, a phase of gold price corrections combined with diverse demand factors—such as holiday gifting, wedding-related purchases, and investment collection—collectively fueled sustained growth in gold consumption.

Additionally, during the morning session, Lao Feng Xiang rose over 6% at the market open.

CATL gained over 3% in early trading.

Previously, Hang Seng Indexes Company announced the quarterly review results for the Hang Seng Index Series as of December 31, 2025. The number of Hang Seng Index constituents will increase from 88 to 90. CATL, CMOC, and Lao Feng Xiang will be newly added, while Zhongsheng Holdings will be removed. These changes will take effect starting March 9.

AI application concept stocks rose in early trading. The semiconductor sector saw a sharp upward surge. On February 16, Hong Kong-listed AI application-related stocks opened higher, with Fubo Group surging over 10% and MINIMAX gaining nearly 6%.

KNOWLEDGE ATLAS continued its recent momentum in early trading, with its share price reaching a high of HK$540 per share, an increase of over 11%.

Regarding recent developments, KNOWLEDGE ATLAS is planning a secondary listing on the STAR Market. The China Securities Regulatory Commission website updated information on the IPO tutoring progress for KNOWLEDGE ATLAS. The latest tutoring filing report indicates the company intends to list on the STAR Market. Concurrently, its IPO tutoring institutions have been changed to two brokerages, shifting from solely China International Capital Corporation Limited to both Guotai Junan Securities and CICC.

Unlike the common path of "A-share listing first, then H-share listing" taken by most companies, KNOWLEDGE ATLAS has opted for "H-share first, then Shanghai." Analysts suggest this strategy could help the company broaden its base of mainland investors and benefit from the higher valuation premiums typically seen in A-shares compared to H-shares.

On the morning of February 16, Hong Kong's semiconductor sector experienced a sharp upward surge. GigaDevice rose over 17% during the session, while Montage Technology climbed over 13%.

In related news, just before the Spring Festival, the domestic memory market underwent a new round of price fluctuations. Recently, spot prices for memory saw a slight correction, with some DDR4 products falling 10% to 20% from their 2025 peaks, though overall prices remain at historically high levels. The NAND flash market shows stronger upward price momentum. Quotes from original manufacturers have doubled since the start of the year, with eMMC embedded storage prices seeing particularly notable increases.