[ET Net News Agency, 26 May 2026] Positive news emerged from the US and Iran over the past weekend, with US President Donald Trump indicating that the agreement was "basically finalised", causing oil prices to plunge immediately. Wall Street was closed the previous evening, and the Hong Kong stock market reacted first. Coupled with a massive outbreak in the concept of domestic chips and a mid-day surge in Lenovo (00992), this counterbalanced the negative news regarding Mainland China's crackdown on cross-border stock trading. The HSI reported 25,742 at the half-day mark, up 136 points or 0.5%, returning above the 250-day moving average (approximately 25,639). The Hang Seng China Enterprises Index reported 8,628, up 77 points or 0.9%. The Hang Seng Tech Index reported 4,981, up 111 points or 2.3%. It is worth noting that trading was fervent this morning, with half-day Main Board turnover nearing HKD 200.4 billion, while the reopened southbound Stock Connect temporarily recorded a net inflow of HKD 2.1 billion.
"Mak Ka Ka: Overhead resistance for HSI at 26,000"
Tensions in the Middle East eased, as the US and Iran have reportedly agreed on a framework for a memorandum of understanding which, if signed, will fully restore shipping in the Strait of Hormuz within 30 days. However, US-listed Chinese firms faced collective selling pressure, with the Nasdaq Golden Dragon China Index closing down over 2% last Friday. On the first day after the long holiday, the Hong Kong stock market showed volatile movements, with the HSI having dropped over a hundred points and also risen over a hundred points. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that despite the positive news from the US and Iran, past negotiations have often been filled with variables; therefore, the market generally adopts a wait-and-see attitude, and the boost to the HSI is limited. Conversely, US and global bond yields are currently on the high side, putting the market on alert. Because the US 10-year bond yield is used to calculate the discount rate, higher bond yields disguise pressure on high-valuation shares, which may affect market investment sentiment. Mak expects the HSI to largely maintain a range-bound fluctuation, with initial support near the 250-day moving average, commonly known as the bull-bear line, and overhead resistance at the 26,000 level.
"Mainland China chip stocks exploded yesterday, H-shares playing catch-up today"
Huawei pointed to a breakthrough in chip technology, stating that the Kirin mobile phone chip, set to debut this autumn, will be the first to adopt logic folding technology, significantly enhancing performance. He Tingbo, director of the company and president of the semiconductor business department, expressed that Huawei has found a new path based on a new law - the "Tau Law" - which replaces "geometric scaling" with "time scaling", achieving a step-by-step leap in mobile phone chip performance. It is expected that by 2031, the transistor density of high-end chips based on this law will reach the equivalent level of a 1.4-nanometre process.
Mak stated that Huawei's technological breakthrough has boosted confidence in the domestic production of chip stocks. As the Hong Kong stock market was closed yesterday, semiconductor industry-related stocks in the Mainland China A-share market took advantage of the momentum to explode, and Hong Kong chip stocks can be considered to be catching up today. Although Hong Kong chip stocks rose significantly today, driven by the positive news of Huawei's technological breakthrough, related shares including GPUs, CPUs, memory chips, and packaging materials are expected to still have room to rise.
SMIC (00981) and Hua Hong (01347) both opened 15% higher this morning, though their gains subsequently narrowed slightly. Mak believes that chip stocks have accumulated relatively large gains recently and their current share prices are on the expensive side. Among them, Hua Hong's share price hit a record high, and SMIC's peak share price today of HKD 93 also approached its historical high of HKD 93.5 set in October last year, meaning it cannot be ruled out that some investors are taking profits at high levels. Mak pointed out that as the chip industry is supported by national policy, it still possesses a certain degree of potential and advantage. Today's retreat from high share price levels is mild and remains a healthy adjustment. It is expected that medium-to-long-term investors may still absorb shares at low levels during corrections; therefore, the downside room for chip stocks is expected to be limited, and it is anticipated that SMIC falling below HKD 78 and Hua Hong falling below HKD 140 will still hold a certain level of attraction.
"Mak Ka Ka: Overhead resistance for HSI at 26,000"
Tensions in the Middle East eased, as the US and Iran have reportedly agreed on a framework for a memorandum of understanding which, if signed, will fully restore shipping in the Strait of Hormuz within 30 days. However, US-listed Chinese firms faced collective selling pressure, with the Nasdaq Golden Dragon China Index closing down over 2% last Friday. On the first day after the long holiday, the Hong Kong stock market showed volatile movements, with the HSI having dropped over a hundred points and also risen over a hundred points. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that despite the positive news from the US and Iran, past negotiations have often been filled with variables; therefore, the market generally adopts a wait-and-see attitude, and the boost to the HSI is limited. Conversely, US and global bond yields are currently on the high side, putting the market on alert. Because the US 10-year bond yield is used to calculate the discount rate, higher bond yields disguise pressure on high-valuation shares, which may affect market investment sentiment. Mak expects the HSI to largely maintain a range-bound fluctuation, with initial support near the 250-day moving average, commonly known as the bull-bear line, and overhead resistance at the 26,000 level.
"Mainland China chip stocks exploded yesterday, H-shares playing catch-up today"
Huawei pointed to a breakthrough in chip technology, stating that the Kirin mobile phone chip, set to debut this autumn, will be the first to adopt logic folding technology, significantly enhancing performance. He Tingbo, director of the company and president of the semiconductor business department, expressed that Huawei has found a new path based on a new law - the "Tau Law" - which replaces "geometric scaling" with "time scaling", achieving a step-by-step leap in mobile phone chip performance. It is expected that by 2031, the transistor density of high-end chips based on this law will reach the equivalent level of a 1.4-nanometre process.
Mak stated that Huawei's technological breakthrough has boosted confidence in the domestic production of chip stocks. As the Hong Kong stock market was closed yesterday, semiconductor industry-related stocks in the Mainland China A-share market took advantage of the momentum to explode, and Hong Kong chip stocks can be considered to be catching up today. Although Hong Kong chip stocks rose significantly today, driven by the positive news of Huawei's technological breakthrough, related shares including GPUs, CPUs, memory chips, and packaging materials are expected to still have room to rise.
SMIC (00981) and Hua Hong (01347) both opened 15% higher this morning, though their gains subsequently narrowed slightly. Mak believes that chip stocks have accumulated relatively large gains recently and their current share prices are on the expensive side. Among them, Hua Hong's share price hit a record high, and SMIC's peak share price today of HKD 93 also approached its historical high of HKD 93.5 set in October last year, meaning it cannot be ruled out that some investors are taking profits at high levels. Mak pointed out that as the chip industry is supported by national policy, it still possesses a certain degree of potential and advantage. Today's retreat from high share price levels is mild and remains a healthy adjustment. It is expected that medium-to-long-term investors may still absorb shares at low levels during corrections; therefore, the downside room for chip stocks is expected to be limited, and it is anticipated that SMIC falling below HKD 78 and Hua Hong falling below HKD 140 will still hold a certain level of attraction.
