HK Stock Midday Review: Hang Seng Index Falls 0.98%, Zhipu AI's Market Cap Surpasses HK$1 Trillion
Taylor Wilson
The Hang Seng fell 234 points to 23,690 on June 22, but the headline masked sharp rotation — Zhipu AI surged over 40% intraday, breaching a HK$1 trillion market cap and dominating the session.
The index dropped — so where did the money go?
The Hang Seng slipped 0.98% to 23,690; the Hang Seng Tech index fell 1.35%. Morning turnover hit HK$200.3 billion.
The index was soft, yet turnover stayed high — money didn't leave, it rotated.
This means → today's story is sector rotation, not broad selling: capital exited old leaders and piled into pricing-power plays and AI names.
Zhipu AI exploded higher — what's behind it?
Zhipu (02513) surged over 40% intraday to an all-time high, pushing its market cap past HK$1 trillion before trimming gains to about 17% by midday.
The catalyst: the CEO publicly said China's AI models are closing the gap fast, firing up sentiment.
In plain terms = an AI company's boss stood up and said "we're catching up" — and the market voted with real money, sending the stock to a trillion-dollar valuation in one morning.
Fiber, PCBs, memory chips — how much is "price hike" worth?
Changfei Fiber Optic (06869) jumped over 27% after Japanese supplier Fujikura raised its guidance, reinforcing the view that fiber-optic price hikes are becoming an industry consensus.
Kingboard Holdings (00148) rose over 8% to a fresh all-time high, with year-to-date gains approaching 400% — driven by sustained PCB (printed circuit board — the "backplane" connecting chips inside electronic devices) price increases.
GigaDevice (03986) climbed 11% to another record. Supplier exits plus strong demand keep the pricing momentum alive for NOR/NAND memory chips — the storage chips inside phones and computers.
This reflects one of the strongest threads in Hong Kong stocks right now: supply shrinks + demand holds → prices rise, and capital is hunting along that logic chain.
IPO debut, rare metals, shipping — what else moved?
New listing Haiqing Zhiyuan (01392) soared 250% on its debut. The company ranks first by market share in China's multispectral AI industry.
Longpan Technology (02465) gained over 11%. Lithium iron phosphate — the key cathode material in EV batteries — has doubled in price over the past year, with demand still robust.
Dongjiang Environmental (00895) surged 37% on bismuth telluride — a rare metal material — speculation. COSCO Shipping Energy (01138) rose 7.9% as US-Iran talks boosted expectations for Strait of Hormuz shipping lanes reopening, sending spot freight rates sharply higher.
Why did brokerages rally against the tape?
GF Securities (01776) rose 6.49% and CITIC Securities (06030) gained 6.4%, with mainland brokerages broadly higher through the morning.
The trigger: the Lujiazui Forum released several policy tailwinds, and the market now expects strong interim results across the sector.
This means → brokerages are among the most policy-sensitive stocks in Hong Kong — when the forum signals good news, capital rushes in to front-run earnings.
Why did autos and gold sell off?
Auto stocks fell across the board. Great Wall Motor (02333) dropped over 3% and Li Auto (02015) lost 3%, weighed down by EU plans to impose additional tariffs on Chinese plug-in hybrid imports.
Gold miners led declines. Lingbao Gold (03330) fell 10% and Chifeng Gold (06693) lost 6.47% after hopes for a Fed rate cut this year faded and Goldman Sachs slashed its gold price target.
In plain terms = no rate cut → stronger dollar → gold under pressure → gold stocks follow. Whether the sector stabilizes depends on whether the Fed's policy path takes a new turn.
Content is for reference only, not financial advice.