THE HONG KONG ECONOMIC TIMES COMMUNICATIONS AGENCY, 13th - The turnover of Hong Kong stocks has remained low. Although the market turnover rose to the HK$200 billion level in the latter part of last week due to northbound funds, it fell back below the HK$200 billion level at the start of the new week yesterday. Overseas markets performed weakly overnight. Oil prices rose due to instability in the Middle East, clearly reducing risk appetite for tech stocks. This morning, global AI hardware stocks collectively weakened, dragging down related sectors in Hong Kong. The Hang Seng Index was under pressure early in the session and even briefly fell below 24,000. However, after testing below 24,000, funds flowed back in to buy the dip. The index turned positive in the afternoon session and closed at its highest level of the day at 24,345, up 74 points or 0.3%. Total board turnover was nearly HK$187.6 billion. The Hang Seng China Enterprises Index closed at 8,174, up 6 points or less than 0.1%. The Hang Seng Tech Index closed at 4,136, down 32 points or 0.8%.
Although today's turnover in Hong Kong stocks remains below the HK$200 billion benchmark, it increased by nearly HK$25 billion compared to yesterday. Moreover, the Hang Seng Index declined first and then rose, closing at its highest level of the day, forming a hammer pattern on the daily chart, indicating a short-term positive trend. However, it should be noted that inflation data from both China and the United States will be released this week, which will simultaneously affect economic outlook forecasts for both overseas and domestic markets. The market still has a high chance of being volatile, as economic data trends are difficult to predict. It is therefore not advisable to heavily bet on favorable patterns. Cautious investors may wait for the data release before seizing opportunities.
*Longxin's surprise announcement at Korean semiconductor conference hits Korean stocks*
Overnight, US tech stocks weakened, with the Philadelphia Semiconductor Index down 2.7% and Micron (US.MU) down nearly 4%. AI infrastructure stocks were sold off across the board; Yangtze Optical Fibre and Cable (06869) fell 3.5% to HK$150.6; Zhongji旭創 (03308) fell 1.4% to HK$890; Sanhuan Group (06951) fell 0.9% to HK$103.4; Kingboard Laminate (01888) fell 4.5% to HK$44.7; Sunway Technology (02476) fell 1.1% to HK$172.8.
Chip stocks declined across the board; Hua Hong (01347) fell 5.3% to HK$85.1; SMIC (00981) fell 1.2% to HK$55.55; Montage Technology (06809) fell 5.1% to HK$241.8; Zhaoyi Innovation (03986) fell 4.1% to HK$360.2; TianShu Zhi Xin (09903) fell 3.5% to HK$84.9; Biren Technology (06082) fell 5.6% to HK$28.24.
Additionally, ChangXin Memory Technologies announced a key breakthrough in its 4F^2 DRAM architecture, reducing the storage cell area by about 33% compared to the current mainstream 6F^2 architecture, allowing more storage cells to be integrated per wafer and increasing storage density. The news was released just before the Korean semiconductor exhibition opens tomorrow, prompting the market to sell off Korean memory chip stocks in advance. The Korean KOSPI index plunged nearly 5.5% for the day, SK Hynix dropped over 10%, and Samsung Electronics fell more than 7%. Related Korean stock ETFs were hit across the board; Southern Double Long SK Hynix (07709) fell 18% to HK$26.1; Southern Double Long Samsung (07747) fell 13.6% to HK$57.6; Southern KOSPI (03121) fell 6.9% to HK$5.86; A Southern Korea Covered (03537) fell 6.1% to HK$8.4.
*Kingsoft Software's positive triangular consolidation pattern warrants close attention*
Xiaomi (01810), responding to the sharp rise in memory chip prices, has clearly slowed its AI development progress this year to reduce capital expenditure and counteract the memory price surge. However, Kingsoft, also controlled by Lei Jun of Xiaomi, has long been considered Lei Jun's behind-the-scenes base for AI development. Although Kingsoft rarely releases news, since the second half of this year, Lei Jun has repeatedly and in batches increased his stake in Kingsoft Software (03888). From holding less than 23% at the beginning of June to the latest disclosure at the beginning of this month of an additional 310,000 shares, his latest stake has increased to 27.9%, meaning he has gradually increased his stake by about 5% over four months.
In terms of stock price movement, Kingsoft Software has been rebounding steadily since stabilizing around HK$21 at the beginning of June, roughly coinciding with the start of Lei Jun's steady增持. The stock price was twice capped by the 250-day moving average, in early August and yesterday, but has since remained above the 100-day moving average around HK$24. The price pattern is currently forming a triangular consolidation. If the stock price subsequently breaks above and stabilizes above the 250-day moving average (around HK$26.38), it would confirm a successful triangular breakout. Investors interested in capturing this breakout should consider buying on near-term pullbacks over the next one or two days. If the breakout is successful, the initial target could be HK$32. (hc)
Although today's turnover in Hong Kong stocks remains below the HK$200 billion benchmark, it increased by nearly HK$25 billion compared to yesterday. Moreover, the Hang Seng Index declined first and then rose, closing at its highest level of the day, forming a hammer pattern on the daily chart, indicating a short-term positive trend. However, it should be noted that inflation data from both China and the United States will be released this week, which will simultaneously affect economic outlook forecasts for both overseas and domestic markets. The market still has a high chance of being volatile, as economic data trends are difficult to predict. It is therefore not advisable to heavily bet on favorable patterns. Cautious investors may wait for the data release before seizing opportunities.
*Longxin's surprise announcement at Korean semiconductor conference hits Korean stocks*
Overnight, US tech stocks weakened, with the Philadelphia Semiconductor Index down 2.7% and Micron (US.MU) down nearly 4%. AI infrastructure stocks were sold off across the board; Yangtze Optical Fibre and Cable (06869) fell 3.5% to HK$150.6; Zhongji旭創 (03308) fell 1.4% to HK$890; Sanhuan Group (06951) fell 0.9% to HK$103.4; Kingboard Laminate (01888) fell 4.5% to HK$44.7; Sunway Technology (02476) fell 1.1% to HK$172.8.
Chip stocks declined across the board; Hua Hong (01347) fell 5.3% to HK$85.1; SMIC (00981) fell 1.2% to HK$55.55; Montage Technology (06809) fell 5.1% to HK$241.8; Zhaoyi Innovation (03986) fell 4.1% to HK$360.2; TianShu Zhi Xin (09903) fell 3.5% to HK$84.9; Biren Technology (06082) fell 5.6% to HK$28.24.
Additionally, ChangXin Memory Technologies announced a key breakthrough in its 4F^2 DRAM architecture, reducing the storage cell area by about 33% compared to the current mainstream 6F^2 architecture, allowing more storage cells to be integrated per wafer and increasing storage density. The news was released just before the Korean semiconductor exhibition opens tomorrow, prompting the market to sell off Korean memory chip stocks in advance. The Korean KOSPI index plunged nearly 5.5% for the day, SK Hynix dropped over 10%, and Samsung Electronics fell more than 7%. Related Korean stock ETFs were hit across the board; Southern Double Long SK Hynix (07709) fell 18% to HK$26.1; Southern Double Long Samsung (07747) fell 13.6% to HK$57.6; Southern KOSPI (03121) fell 6.9% to HK$5.86; A Southern Korea Covered (03537) fell 6.1% to HK$8.4.
*Kingsoft Software's positive triangular consolidation pattern warrants close attention*
Xiaomi (01810), responding to the sharp rise in memory chip prices, has clearly slowed its AI development progress this year to reduce capital expenditure and counteract the memory price surge. However, Kingsoft, also controlled by Lei Jun of Xiaomi, has long been considered Lei Jun's behind-the-scenes base for AI development. Although Kingsoft rarely releases news, since the second half of this year, Lei Jun has repeatedly and in batches increased his stake in Kingsoft Software (03888). From holding less than 23% at the beginning of June to the latest disclosure at the beginning of this month of an additional 310,000 shares, his latest stake has increased to 27.9%, meaning he has gradually increased his stake by about 5% over four months.
In terms of stock price movement, Kingsoft Software has been rebounding steadily since stabilizing around HK$21 at the beginning of June, roughly coinciding with the start of Lei Jun's steady增持. The stock price was twice capped by the 250-day moving average, in early August and yesterday, but has since remained above the 100-day moving average around HK$24. The price pattern is currently forming a triangular consolidation. If the stock price subsequently breaks above and stabilizes above the 250-day moving average (around HK$26.38), it would confirm a successful triangular breakout. Investors interested in capturing this breakout should consider buying on near-term pullbacks over the next one or two days. If the breakout is successful, the initial target could be HK$32. (hc)
