Hong Kong's three major stock indices opened slightly lower and continued to weaken, with selling pressure intensifying in the afternoon. The Hang Seng Index fell below the 26,000-point mark, while the Tech Index dropped nearly 3%.
At the close, the Hang Seng Index was down 1.56% or 405.11 points at 25,633.21, with a daily turnover of HK$322.921 billion. The Hang Seng China Enterprises Index fell 1.9% to 8,596.59, and the Hang Seng Tech Index declined 2.74% to 5,056.97.
Analysts note that the Hong Kong market faces periodic headwinds to liquidity in the second half of the year. July and September are the two peaks for share lock-up expirations, though the pressure is concentrated in specific sectors. Meanwhile, ongoing IPOs are effectively optimizing the market structure. Once the headwinds subside, the market's perception of value is expected to return. Most Hong Kong sectors are trading at low valuation percentiles, and once international risks and liquidity concerns ease, the market may revert to a fundamental assessment of value.
Blue-Chip Performance
TENCENT HOLDINGS LTD (HKEX: 00700) saw its shares decline. By the close, they were down 3.16% at HK$466.4, with a turnover of HK$22.995 billion, dragging the Hang Seng Index down by 61.39 points. Reports indicate that a company representative stated it is currently impossible to determine when the WeChat AI agent will launch, as its release timeline largely depends on regulatory approval for such intelligent agents. Given WeChat's 1.4 billion user base, the compliance process may be more stringent than for other products.
Among other blue chips, CITIC LTD (HKEX: 00267) rose 2.33% to HK$13.63, contributing 2.85 points to the index. TTI (HKEX: 00669) gained 1.81% to HK$118.4, adding 4.89 points. LI AUTO INC (HKEX: 02015) fell 4.52% to HK$59.1, dragging the index down by 6.24 points. CSPC PHARMACEUTICAL GROUP LTD (HKEX: 01093) dropped 4.23% to HK$7.25, contributing a negative 4.07 points.
Key Sectors in Focus
Across the board, major technology and internet stocks retreated, with Tencent and Alibaba both down over 3%. Buoyed by a surge in overseas optical communication stocks and the commencement of domestic multi-core optical cable production, optical communication concepts defied the broader market downtrend, with YOFC (HKEX: 06869) surging over 10%. Semiconductor stocks were also active, with Huahong up over 2%. The PCB concept was strong, with KB LAMINATES (HKEX: 01888) rising over 9%. A sudden escalation in U.S.-Iran tensions triggered an afternoon rally in oil & gas and coal stocks. Conversely, cryptocurrency-related concepts led the declines, while innovative drugmakers, airlines, and automobile stocks all moved lower.
Top Gainers and Losers by Theme
Optical Communication Concepts Lead Gains
By the close, LUMINERA TECHNOLOGIES LTD (HKEX: 01879) was up 16.83% at HK$708.0. YOFC (HKEX: 06869) gained 10.65% to HK$257.6. CIG (HKEX: 06166) rose 7.14% to HK$144.1. FIT HON TENG LTD (HKEX: 06088) advanced 7.06% to HK$9.71.
Overnight, U.S. optical communication leader Marvell Technology saw its stock surge over 30%. CEO Matt Murphy stated that following explosive growth in demand for computing power and storage, data center connectivity is becoming the next major bottleneck for AI growth. Additionally, NVIDIA announced that its Spectrum-X Ethernet silicon photonics technology is now in full production. The new generation Spectrum-X switches, built on co-packaged optics (CPO) technology, support the horizontal and cross-regional scaling of AI factories using the NVIDIA Vera Rubin platform within data centers.
Separately, according to China Mobile and Hengtong Optic-Electric, the world's first S+C+L triple-band (short-band + conventional communication band + long-band) ultra-low-loss multi-core optical cable line was officially completed and opened in Qingdao, Shandong. Traditional fibers are limited by the number of cores and available bandwidth, creating a clear bottleneck. The new cable enables "triple-band parallel transmission," effectively widening the information highway from a "two-lane road" to a "three-lane road," increasing single-core bandwidth by nearly 50% and single-fiber capacity to over five times that of traditional fiber, sufficiently meeting future demands for AI computing and T-bit level ultra-high-speed transmission.
Oil & Gas and Coal Concepts Rally in Afternoon
By the close, SHANDONG MOLONG (HKEX: 00568) surged 16.61% to HK$6.39. SINOPEC OILFIELD SERVICE CORP (HKEX: 01033) gained 4.23% to HK$0.74. YANCOAL AUSTRALIA LTD (HKEX: 03668) rose 2.04% to HK$38.96.
From late June 2nd to the early hours of June 3rd, U.S.-Iran tensions escalated sharply with ongoing exchanges of fire. Iran's Islamic Revolutionary Guard Corps launched missile and drone attacks on the U.S. Fifth Fleet headquarters in Bahrain and U.S. military bases in Kuwait and other Middle Eastern locations, in retaliation for prior U.S. attacks on an Iranian-linked oil tanker and an airstrike on Iran's Qeshm Island communication station. The U.S. military stated it conducted a "self-defense" airstrike on Qeshm Island, successfully intercepting all incoming weapons and denying any base was hit. Airports in Bahrain, Kuwait, the UAE, and other countries have suspended operations.
Semiconductor Stocks Show Activity
By the close, INNOSCIENCE (HKEX: 02577) rose 7.05% to HK$73.65. GIGADEVICE SEMICONDUCTOR BEIJING CO LTD (HKEX: 03986) gained 3.45% to HK$735.5. NATIONAL CHIP (HKEX: 02701) increased 3.76% to HK$12.7.
On June 2nd, SK Group Chairman Chey Tae-won revealed to media at the Computex exhibition in Taipei that its memory chip company SK Hynix plans to double its wafer production capacity within five years to address the ongoing shortage of memory chips driven by global AI infrastructure buildout. Overall, benefiting from sustained explosive AI demand, segments including memory, MCUs, and optical communication are also driving demand for global semiconductor capacity.
PCB Concept Stocks Broadly Higher
By the close, KB LAMINATES (HKEX: 01888) jumped 9.55% to HK$54.25. KINGBOARD HOLDINGS LTD (HKEX: 00148) gained 3.98% to HK$62.75. GUANGHE TECHNOLOGY CO LTD (HKEX: 01989) rose 5.39% to HK$174.0.
In early June, copper clad laminate (CCL) manufacturers including Kingboard, Shengyi Technology, and Jinan Guoji successively issued price hike notices for the third quarter, with increases generally between 10% and 15%. This marks the second round of comprehensive price hikes in 2026, following an 8% to 10% increase in March. Notably, KB Laminates has experienced seven price increases since 2025, primarily driven by tight supply and rising costs of upstream raw materials.
Notable Stock Movements
SHOUGANG LANZA (HKEX: 02553) debuted on the main board. By the close, it surged 44.25% to HK$21.06. Public information shows the company specializes in the resource utilization of industrial off-gases, converting waste gases from industries like steel and ferroalloys into products like ethanol and microbial protein through biological fermentation. It is the world's first company to achieve large-scale commercial implementation of this technological pathway and has completed the iteration from first-generation carbon reduction to second-generation carbon negativity.
GENSCRIPT BIO (HKEX: 01548) rose on heavy volume. By the close, it was up 10.54% at HK$13.42. The company announced that its associate, Legend Biotech, disclosed preliminary clinical data for its investigational in vivo CD19/CD20 dual-target CAR-T cell therapy, LB2501, in patients with relapsed or refractory B-cell non-Hodgkin lymphoma. The company noted that the preliminary clinical data has shown positive signals and will be presented in the Latest Breakthrough session at the 2026 European Hematology Association (EHA) Annual Meeting.
CGN MINING CO LTD (HKEX: 01164) performed strongly. By the close, it was up 7.01% at HK$3.51. Overnight, U.S. uranium mining stocks rallied. Urenco USA, currently the only commercial uranium enrichment company in production in the U.S., issued an announcement on Tuesday stating it will invest "billions of dollars" to increase its existing low-enriched uranium (LEU) production capacity by 50%. It is reported that the facility, as the only current commercial enrichment production plant in the U.S., has an existing annual capacity of 4.3 million SWU, which can only supply about one-third of U.S. demand.
XI MEI RESOURCES HOLDINGS LTD (HKEX: 09936) saw its shares plunge. By the close, they were down 10.25% at HK$17.95. The company announced a proposed top-up placing to not fewer than six placees of up to 34.1 million shares, representing approximately 8.23% of the enlarged issued share capital, at a price of HK$16.1 per share. This represents a discount of approximately 19.5% to the closing price of HK$20.0 on June 2nd. The net proceeds are estimated to be approximately HK$537.2 million.
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