Hong Kong Market Close: Hang Seng Index Falls 0.7% as Semiconductor and Computing Power Stocks Buck the Trend
Alina Collins
Hong Kong's three benchmark indices closed lower on July 9, with the Hang Seng down 0.7% at 24,030 — yet CXMT's record ¥29.5 billion STAR Market IPO lit up the entire chip sector and Goldman Sachs issued a buy call on China's AI chain, signaling that money is rotating hard into computing hardware even as the broad market falls.
Why did one IPO filing lift the entire chip sector?
CXMT (ChangXin Memory Technologies) published its STAR Market IPO prospectus on July 9, planning to issue 6.688 billion shares and raise ¥29.5 billion — the largest STAR Market IPO fundraise ever. This means → the market read this capital commitment as a signal that China's memory-chip capex supercycle is starting.
The news pulled Hong Kong chip stocks up across the board: GigaDevice surged 21.75%, SMIC rose 10.22% (HK$18.65 billion in turnover, contributing 49.73 points to the Hang Seng alone), and Hua Hong gained 8.44%.
Guolian Minsheng Securities sees AI demand driving a global semiconductor upcycle, with memory-chain "inflation and capacity expansion reinforcing each other." Guojin Securities added that domestic foundries have moved from "demand validation" into the "earnings delivery" phase. In plain terms = orders were the proof-of-concept; now the revenue is actually showing up.
Why is Goldman calling a buy on China AI right now?
Goldman Sachs released a report the same day recommending clients buy its proprietary "GS China AI Value Chain" basket, spanning power, semiconductors, AI infrastructure, models, and applications.
The core logic: since late 2022, global AI-related stocks have created $34 trillion in market value. China's AI-related market cap sits at roughly $4 trillion — Goldman calls this "significantly underweight" relative to China's actual position in the global AI industry.
This means → Goldman is not betting on a single stock but on a valuation catch-up across the entire chain — power to chips to apps, bought as one package. Separately, TSMC plans to raise 3nm pricing by up to 15% in H2, with a further 5%–10% possible next year. This reflects the fact that pricing power in global computing hardware still sits upstream.
Within tech, who is winning and who is losing?
Large-cap tech diverged: Tencent fell nearly 2%, Alibaba edged up 0.47%. Lenovo jumped 7.71% after IDC data showed its Q2 global PC shipments hit 16.6 million units, a 24.4% market share — a record for any second quarter.
Zhipu AI rose 11.34% to HK$2,032. The company announced a HK$31.41 billion placement the same day, earmarking funds for foundation-model R&D, compute infrastructure, and commercialization. In plain terms = Zhipu's stock was rising and it seized the moment to lock in a massive fundraise — cash first, questions later.
Insilico Medicine gained 7.68% on a profit alert: H1 revenue is expected at $102.5–106.5 million, up roughly 272.7%–287.3% year-on-year, with net profit of $33.5–39.5 million — a swing from loss to profit. This reflects the AI-drug sector crossing from cash-burn into an earnings inflection point.
Why did gold stocks and airline stocks fall at the same time?
Gold stocks dropped across the board: Shandong Gold fell 4.69%, Zijin Gold International lost 4.41%, China Gold International slid 3.11%. The Fed's June minutes showed some officials saw a case for rate hikes; the 10-year Treasury yield rose more than 20 basis points from last Friday's close, and the 30-year yield held above 5% for a third straight session. This means → the higher Treasury yields go, the greater the opportunity cost of holding gold — and the heavier the pressure on bullion and gold miners.
Airlines were under pressure all day: Air China fell 6.78%, China Eastern dropped 5.63%, Cathay Pacific lost 3.59%. The EU Aviation Safety Agency advised operators to avoid Iranian, Iraqi, and Lebanese airspace; Iran announced plans for large-scale strikes on US military bases, and oil prices surged 7%.
In plain terms = oil prices up plus longer flight routes means airlines face a double hit on fuel bills and operating costs — two blades cutting into margins at once.
Seven IPOs debuted on the same day — how wide was the gap?
The Hong Kong Exchange saw seven new listings on a single day, a 2025 record. Performance was sharply split: Qiyunshan Food soared 162.5% (topping 200% intraday), Rokae Robotics rose 15.21%, and Sanan Group gained 4.69%.
But this year's largest HKEX IPO, Luxshare Precision, broke its issue price at the open and closed down 1.55% at HK$62.3. Rigol Technologies fell 37.36% — the steepest loss of the group.
This reflects a defining feature of the current Hong Kong IPO market: small-cap names get bid up on speculative momentum while large-caps struggle under rich pricing and diluted fund flows.
What is the outlook from here?
CITIC Securities notes that Hong Kong's outstanding short interest as a share of market cap has surged to a historical high. As internal and external headwinds ease, that short ratio has significant room to unwind — supporting a continued rebound.
Whether semiconductors can keep leading, however, depends on two things still ahead: CXMT's actual market pricing after listing and interim earnings data. In plain terms = sentiment has run ahead; fundamentals haven't fully caught up — the next cards haven't been turned yet.
Total daily turnover reached HK$377.25 billion. The Hang Seng Tech Index finished virtually flat at +0.01%, closing at 4,731.56 — tech is sitting right on the bull-bear equilibrium line, with direction still undecided.
Content is for reference only, not financial advice.