Hong Kong stocks closed (08.24) | Hang Seng Index closed down 1.89% of optical communication concepts, and Ali (09988) allotted 80 billion all-in AI shares, and the stock price plummeted 8%

The Zhitong Finance App learned that the three major indices of Hong Kong stocks fell under pressure throughout the day. The Hang Seng Index fell below the 26,000 mark, and the Hengke Index plummeted by more than 3%. At the close, the Hang Seng Index fell 1.89% or 492.13 points to 25517.33 points, with a full-day turnover of HK$291.151 billion; the Hang Seng State-owned Enterprises Index fell 1.89% to 8471.36 points; and the Hang Seng Technology Index fell 3.61% to 4594.04 points.

Huatai Securities believes that at the macro level, the upward risk of US bond interest rates still exists, suppressing room for further valuation repair. Microscopic earnings clues are the key to determining whether Hong Kong stocks can break through upward. Standing at the “crossroads”, we continue to suggest a balanced arrangement of the three directions. First, low-volatility dividends are still the bottom position. Second, mid-report or confirm consumer goods at the bottom of the business cycle. Third, the AI chain is under financial pressure, but the logic of the demand boom is still established.

Blue-chip stock performance

Alibaba-W (09988) led the blue chip decline. At the close, it decreased by 8.54% to HK$112.5, with a turnover of HK$40.582 billion. Dragged down 167.18 points. Alibaba announced that it plans to place new shares to non-Americans outside the US, with a total placement amount of HK$80 billion. This is the first time that Alibaba has initiated an IPO since the Hong Kong stock listing in 2019. 100% of the net proceeds will be used to invest in full-stack AI capabilities to strengthen AI infrastructure.

In terms of other blue chips, Sinopec (00386) rose 5.9% to HK$4.665, contributing 9.06 points; Bubble Mart (09992) rose 4.03% to HK$155, contributing 6.81 points to the Hang Seng Index; SMIC (00981) fell 7.93% to HK$66.75, dragging down 36.92 points; and Hanson Pharmaceuticals (03692) fell 6.11% to HK$31.06, dragging down the Hang Seng Index by 4.61 points.

Popular sector aspects

On the market, on the market, large science and network stocks were collectively under pressure. Alibaba placed a huge amount of money on AI, and at one point, the stock price fell by more than 10%. AI hardware stocks such as popular optical communications and storage concepts were the biggest drag, falling 11% after Zhongjixu achieved results; robotics concepts and most pharmaceutical stocks were generally under pressure. On the other side, the Hang Seng Index quarterly inspection results were released, and related stocks surged against the market; coal stocks, aluminum stocks, etc. were active, and many new consumer stocks were bright, and the Michelle Group surged 7.82%.

The Hang Seng Index quarterly inspection results were released, and related stocks showed strong performance. At the close, Deshai-B (02526) rose 37.45% to HK$723; Liangqing Holdings (03774) rose 25.27% to HK$17.5; Haiqing Zhiyuan (01392) rose 18.89% to HK$24.8; and True Healthcare-B (02697) rose 13.62% to HK$759.

After the market on August 21, Hang Seng Index announced the semi-annual index adjustment results. All changes will be implemented after the market closes on September 4 and will take effect on September 7. At that time, the Shanghai and Shenzhen Stock Exchange will adjust the scope of investment targets of Hong Kong Stock Connect accordingly. Among them, Huahong Hongli and Weichai Power will be included in the Hang Seng Index, and the number of constituent stocks will increase from 93 to 95; the total number of constituent stocks in the Hang Seng Composite Index will increase from 534 to 580, and the constituent stocks will include 61 targets including Deshi Biotech, True Health Care, and Haiqing Zhiyuan, excluding 15 targets including JS Global Life, Haichang Ocean Park, and Reshaping Energy.

Some coal stocks reversed the market. At the close, Yi Dazong (01733) rose 4.55% to HK$0.805; Yancoal Australia (03668) rose 4.23% to HK$33.5; China Coal Energy (01898) rose 3.04% to HK$11.53; and Yankuang Energy (01171) rose 1.72% to HK$12.98.

More than 20 coal-related listed companies have issued interim results announcements. 3 are expected to reverse losses, 6 are expected to reduce losses year on year, 6 expect net profit to increase year on year, and the overall good news ratio for the sector is nearly 70%. Cathay Pacific Haitong Securities pointed out that coal mine safety regulations in Shanxi have continued to become stricter since the end of June. A safety accident occurred after the Xiqu coal mine resumed production on August 5, further strengthening the market's expectations that subsequent safety inspections would maintain high pressure, that the pace of coal mine resumption would be limited, and production release would slow down. As the market's awareness of the continuity of this round of safety inspections and its impact on supply deepens, the coal supply and demand pattern is expected to continue to improve.

Optical communication concepts had the highest decline. At the close, Zhongji Innox (03308) fell 11.32% to HK$1,011; Cambridge Technology (06166) fell 6.79% to HK$89.85.

Market analysts believe that the sharp decline in optical modules may be related to changes in expectations brought about by technological iteration. The market is concerned that CPO technology may change the current industrial chain pattern and affect the market position of traditional pluggable optical modules. Recently, researchers from SK Hynix and the University of Virginia and other institutions jointly published a paper in the top scientific journal “Nature Electronics”, which systematically explained the development roadmap of co-packaged optics (CPO) technology in the field of high-performance computing and AI. On the other hand, Nvidia announced that CPO technology has officially entered the large-scale mass production stage, and its partner list has attracted market attention and may have changed funding expectations.

Furthermore, according to CommunicationsDaily, an authoritative media in the US communications field, the US Information Technology Industry Council (ITI) officially expressed opposition to the US Federal Communications Commission (FCC) last week, urging the FCC not to include foreign-made optical modules on the restricted list. However, the market's interpretation of this is that ITI, as a representative of the US technology industry, suggests that the FCC may indeed introduce relevant restrictions, which instead heightens concerns about the export prospects of optical modules.

Popular exotic stocks

Oriental Selection (01797) improved after the results. At the close, it was up 7.72% to HK$21.78.

Oriental Selection announced the 2026 fiscal year results. The company achieved revenue of 5.701 billion yuan, an increase of 29.8% over the previous year. If the revenue impact of the “Walking with Hui” live broadcast room was excluded, the year-on-year increase was 36.3%. Operating profit changed from a loss of 110 million yuan in the previous fiscal year to a profit of 663 million yuan, turning a loss into a profit. Profit during the year was 544 million yuan, an increase of 8684.8% over the 2025 fiscal year of 6.19 million yuan.

Sinopec (00386) performed well. At the close, it was up 5.9% to HK$4.665.

Sinopec released its 2026 interim results report. In the first half of the year, it achieved revenue of 1436.6 billion yuan, an increase of 2% over the previous year; net profit attributable to shareholders of the parent company was 25.6 billion yuan, an increase of 19.3% over the previous year. At the same time, the company pays attention to shareholder returns. The board of directors decided to pay an interim dividend of 0.105 yuan per share, with a cash dividend ratio of 49.5%.

Lizhu Pharmaceuticals (01513) AH shares fell sharply. At the close, it was down 15.73% to HK$21.

In the first half of the year, Livzon Pharmaceuticals achieved operating income of about RMB 5 billion, a year-on-year decrease of 20.28%; net profit attributable to shareholders of the parent company was RMB 932 million, a decrease of 27.23% over the previous year. Looking at the specific business, the sharp decline in the performance of chemical preparations and traditional Chinese medicine formulations has become a major factor dragging down the company's overall revenue.

The stock price of Daikin Heavy Industries (01081 ) fell sharply. At the close, it was down 10.01% to HK$29.5.

Daikin Heavy Industries achieved revenue of 1.35 billion yuan in the second quarter, a year-on-year decrease of 20.9%; net profit to mother was 170 million yuan, a year-on-year decrease of 47.4%, and a year-on-month decrease of 61.8%. The agency pointed out that the company's revenue and profit for the second quarter were mainly hampered by delivery delays and exchange.

Qiutai Technology (01478) Afternoon diving. At the close, it fell 8.92% to HK$6.18.

Qiu Tai Technology announced its 2026 interim results in the afternoon. The group achieved revenue of 9,923 billion yuan during the period, up 12.36% year on year; profit attributable to the company's equity holders was 276 million yuan, a decrease of 10.49% year on year; gross margin was about 6.6%, down about 0.8 percentage points year on year.