Hong Kong's Hang Seng Index fell 1.4% or 358 points during the morning session to close at 25,274 points. The Hang Seng Tech Index also declined by 1.43%. Trading volume for the morning reached HKD 143.8 billion.
The semiconductor sector was a bright spot amid the broader market weakness. Hua Hong Semi (01347) rose more than 4% after announcing a change in its stock abbreviation to "Hua Hong MacroPower", with expectations for its future production capacity to continue expanding. SICC (02631) gained 3.6%, as overseas SiC (silicon carbide) industry leaders initiated a second round of price hikes; the company is a leader in 8-inch SiC substrate manufacturing.
Innoscience (02577) advanced 4.68% following news that Navitas Semiconductor is betting on an 800V AI power revolution; Innoscience had previously entered the supply chain for Nvidia's HVDC (High-Voltage Direct Current) systems. GigaDevice (03986) bucked the downtrend with a surge of over 9%, driven by a report showing the global NAND flash market size nearly doubled quarter-on-quarter in Q1, with institutions pointing to impending comprehensive price increases for niche memory products.
ZTE (00763) climbed 4.3% after announcing a deep strategic partnership with Tencent (00700), with plans to jointly launch the WorkBuddy AI cloud computer. Dongyue Group (00189) continued its rally, rising more than 6.9% after the US and UK postponed the phase-out process for HFCs, potentially opening up applications for its PTFE material in M10 formulations.
Man Yue Tech (00894) soared over 14%, extending a remarkable rally that has seen its share price surge more than 6.8 times in the past month, partly due to significantly increased demand for MLCCs (Multi-Layer Ceramic Capacitors) from AI servers. Shougang Lanza (02553), on its second day of trading, jumped more than 47% as the company holds a first-mover advantage in the CCUS (Carbon Capture, Utilization, and Storage) sector and has already established four production plants.
Key Market Decliners
Metals and mining stocks faced collective pressure, weighed down by rising energy prices pushing up inflation levels and increasing expectations for Federal Reserve interest rate hikes. CMOC (03993) dropped 5.7%, while MMG (01208) fell 4.4%.
Gold stocks were among the worst performers, as high oil prices stoked inflation expectations and several major banks simultaneously downgraded their gold price forecasts. China Gold International (02099) declined 3.2%, and Zijin Mining (02899) slipped 2.8%.
In a significant single-stock move, Luye Pharma (02186) plunged more than 12% after announcing plans to issue USD 180 million in convertible bonds while simultaneously repurchasing existing bonds.