HK Stocks Midday: Hang Seng Index Falls 0.49% as Optical Communication Sector Surges Against the Trend
Taylor Wilson
The Hang Seng fell 126 points to 25,882 on August 4, yet optical communications and CRO stocks rallied sharply — money is rotating out of defensives and into tech-growth plays.
The index fell — so where did the money go?
The Hang Seng slid 0.49% to 25,882; the Hang Seng Tech Index dipped only 0.19% — tech clearly held up better.
Morning turnover hit HK$135.2 billion. Capital did not leave; it shifted from blue-chip defensives into growth names.
This means → the market is not losing confidence — it is changing direction, moving money from defense to offense.
Why did optical-communications stocks suddenly lead?
The catalyst: the supply gap for InP — indium phosphide, a key material for high-speed optical chips — widened further, and brokerages turned collectively bullish.
Innolight (03308) rose 16.7%, Cambridge Industries (06166) 16%, Haiguang Xinzheng (01191) 27% — all core optical-communications names.
In plain terms = more AI compute means more data moving between data centers, and that relies on light. The raw material for optical chips is running short, so companies making optical modules benefit directly.
Who else in the compute chain is rallying?
PCBs — printed circuit boards, the "wiring base" inside chips and servers — saw both volume and price gains. Xingji Weizhuang (09630) surged over 18%; Han's Laser CNC (03200) rose over 10%.
GBA Smart Computing (01396) climbed over 11% as compute delivery accelerated and its leasing business entered a profit-release phase.
Xunce Tech (03317) jumped over 14% after Dongbei Securities initiated coverage with a "buy" rating; the company's H1 revenue soared 389% and it turned profitable for the first time.
This means → the compute boom is not just a chip story. Down the chain — PCBs, compute leasing, AI software — stocks are rallying in relay.
What is driving the CRO rally?
CRO stocks — contract research organizations that handle R&D outsourcing for drugmakers — surged after several overseas pharma companies reported strong interim results and raised full-year guidance.
WuXi AppTec (02359) rose 11%, leading the blue chips. GenScript Biotech (01548) gained 11%; Asymchem (06821) added 8%.
This means → overseas pharma orders are recovering, and that feeds directly into earnings expectations for China's top CROs. The market is front-running second-half results.
Who fell — and where is the risk?
Auto stocks weakened broadly: XPeng (09868) dropped 4%, Li Auto (02015) fell 3.6%. July sales divergence intensified, stoking fears that the price war is eroding margins.
China Cinda (01359) slid 5.5% after issuing a profit warning — H1 net profit is expected to fall 60%–70% year-on-year.
In plain terms = the winners are riding supply shortages and earnings delivery; the losers face demand divergence and margin compression. Capital's choice is clear.
Content is for reference only, not financial advice.