[ET Net News Agency, 08 June 2026] Affected by the US May non-farm payroll data which far exceeded expectations, market bets on the Federal Reserve raising interest rates before the end of the year surged, ending a historic nine-week winning streak on Wall Street. Foreign technology and chip sectors were massacred, with the Nasdaq plunging over 1,000 points in a single day. Asia-Pacific stock markets were also heavily battered collectively this morning; Korea's stock market triggered a circuit breaker and is currently down 4.7%, Japanese stocks fell 3.6%, and Taiwan stocks also slumped nearly 3.4%. The HSI reported 24,668 at midday, down 293 points or 1.2%, but it has already outperformed major stock markets in the region. The Hang Seng China Enterprises Index reported 8,351, down 85 points or 1%. The Hang Seng Tech Index reported 4,771, down 117 points or 2.4%. Main board turnover of Hong Kong stocks exceeded HKD 196.2 billion at midday, with southbound net inflows approaching HKD 5 billion.
"Nip Chun Pong: Hong Kong stocks will not fully follow the foreign decline, support expected at 24,200"
The three major US stock indexes all slumped last Friday, among which the tech-dominant Nasdaq fell more than 4%, and the Philadelphia Semiconductor Index plunged 10%. Asia-Pacific stock markets fell across the board this morning, with Korean stocks having slumped nearly 9% at most at one point, while Japanese and Taiwan stocks also fell 5% during intraday trading, though the declines have now narrowed. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that the HSI followed the foreign decline today, but the drop was relatively mild, mainly because Hong Kong stocks did not fully follow the rapid gains of foreign stock markets in April and May; plus, the HSI had already fallen for three consecutive days last week, accumulating a drop of over 1,000 points. Even if foreign markets continue to decline, as long as the drop is not too large, it is expected to have a smaller impact on Hong Kong stocks.
Nip Chun Pong said that even if foreign chip stocks continue to correct and drag down global stock markets, heavily-weighted Hong Kong stocks such as Tencent (00700) and Alibaba (09988) are less affected by chip stocks, and given their recent lacklustre share performance, their resilience against declines is relatively strong. As long as the foreign stock market decline is not too large, the HSI is expected to find support at the late-March low of around 24,200 points. Nip Chun Pong believes that the HSI's performance this year has lagged behind major foreign stock markets, and the PE ratios of heavily-weighted stocks are currently stuck at relatively low levels. Once foreign stock markets continue to soften, it cannot be ruled out that some foreign capital will be attracted back to Hong Kong stocks, which is relatively beneficial to the HSI. He continued that although the HSI followed the foreign decline today, the decline has narrowed now, showing a candlestick chart pattern with a white body. If the HSI maintains a white candlestick body at today's close, and can regain 25,000 points in the next two days, the outlook for the HSI can be positive for the remainder of June.
"Chip stocks collapse before Baidu's Kunlun Chip lists, share price lows difficult to determine"
Wall Street chip stocks were sold off last Friday, losing a combined USD 1 trillion in market value in a single day. Nvidia fell 6.2%, Intel dropped 11.3%, ARM plummeted 12.9%, and Micron plunged 13.2%. This dragged down Hong Kong chip stocks as well; SMIC (00981) fell 5% at most during intraday trading, and Hua Hong (01347) once dropped 7%. GigaDevice (03986) fell up to 8%; Montage Tech (06809) fell up to 6%. Nip Chun Pong said that although Hong Kong chip stocks are supported by national policy factors, they belong to the same chip market after all; when foreign chip stocks hit a snag, domestic chip stocks can hardly escape the downturn. Taking SMIC as an example, the stock's low on 30 Mar was HKD 49, and driven by foreign chip stocks, it touched a high of HKD 93 last month, accumulating a rise of about 90% during the period. However, as Hong Kong chip stocks did not fully follow foreign gains earlier, their current declines will similarly not fully match them.
Nip Chun Pong believes that since foreign chip stocks accumulated astonishing gains earlier, the current retracement is reasonable, and the sector's trend is expected to remain weak in the future. But as long as it corrects in an orderly manner, the impact is expected to be minor. However, two new GPU darlings rose against the market today; Iluvatar CoreX (09903) once surged up to 27% against the market, and Biren Tech (06082) also rose up to nearly 14% during intraday trading. Nip Chun Pong pointed out that both stocks are mainly speculating on the concept of inclusion in Stock Connect. Since foreign chip stocks are in a high-level retracement trend, the trend of rising against the market is expected to be unsustainable, and the risk of chasing high prices is high.
Apart from the aforementioned shares, Baidu (09888), which owns Kunlun Chip, also recorded a larger decline today; the stock fell up to nearly 8% this morning, a decline significantly larger than that of the two major tech giants, Tencent and Alibaba. Nip Chun Pong pointed out that Baidu's share price had accumulated a rise of over 40% from April to mid-May, far outperforming Alibaba's 20%-plus, while Tencent even fell instead of rising during the period, part of which was speculation on the concept of Kunlun Chip's listing. The market previously expected Kunlun Chip to list in June, but now that it has entered June, there is still no sign of the listing schedule. Coupled with the weakness of chip stocks, under a double blow, the stock's decline today was also relatively large. However, Nip Chun Pong believes that Baidu's share price is currently still higher than its early-April low, and advises investors to first see if the stock can continue to find support at HKD 115 before considering buying in.
"Nip Chun Pong: Hong Kong stocks will not fully follow the foreign decline, support expected at 24,200"
The three major US stock indexes all slumped last Friday, among which the tech-dominant Nasdaq fell more than 4%, and the Philadelphia Semiconductor Index plunged 10%. Asia-Pacific stock markets fell across the board this morning, with Korean stocks having slumped nearly 9% at most at one point, while Japanese and Taiwan stocks also fell 5% during intraday trading, though the declines have now narrowed. Nip Chun Pong, the Chief Strategist at Solo Securities, told ET Net News Agency that the HSI followed the foreign decline today, but the drop was relatively mild, mainly because Hong Kong stocks did not fully follow the rapid gains of foreign stock markets in April and May; plus, the HSI had already fallen for three consecutive days last week, accumulating a drop of over 1,000 points. Even if foreign markets continue to decline, as long as the drop is not too large, it is expected to have a smaller impact on Hong Kong stocks.
Nip Chun Pong said that even if foreign chip stocks continue to correct and drag down global stock markets, heavily-weighted Hong Kong stocks such as Tencent (00700) and Alibaba (09988) are less affected by chip stocks, and given their recent lacklustre share performance, their resilience against declines is relatively strong. As long as the foreign stock market decline is not too large, the HSI is expected to find support at the late-March low of around 24,200 points. Nip Chun Pong believes that the HSI's performance this year has lagged behind major foreign stock markets, and the PE ratios of heavily-weighted stocks are currently stuck at relatively low levels. Once foreign stock markets continue to soften, it cannot be ruled out that some foreign capital will be attracted back to Hong Kong stocks, which is relatively beneficial to the HSI. He continued that although the HSI followed the foreign decline today, the decline has narrowed now, showing a candlestick chart pattern with a white body. If the HSI maintains a white candlestick body at today's close, and can regain 25,000 points in the next two days, the outlook for the HSI can be positive for the remainder of June.
"Chip stocks collapse before Baidu's Kunlun Chip lists, share price lows difficult to determine"
Wall Street chip stocks were sold off last Friday, losing a combined USD 1 trillion in market value in a single day. Nvidia fell 6.2%, Intel dropped 11.3%, ARM plummeted 12.9%, and Micron plunged 13.2%. This dragged down Hong Kong chip stocks as well; SMIC (00981) fell 5% at most during intraday trading, and Hua Hong (01347) once dropped 7%. GigaDevice (03986) fell up to 8%; Montage Tech (06809) fell up to 6%. Nip Chun Pong said that although Hong Kong chip stocks are supported by national policy factors, they belong to the same chip market after all; when foreign chip stocks hit a snag, domestic chip stocks can hardly escape the downturn. Taking SMIC as an example, the stock's low on 30 Mar was HKD 49, and driven by foreign chip stocks, it touched a high of HKD 93 last month, accumulating a rise of about 90% during the period. However, as Hong Kong chip stocks did not fully follow foreign gains earlier, their current declines will similarly not fully match them.
Nip Chun Pong believes that since foreign chip stocks accumulated astonishing gains earlier, the current retracement is reasonable, and the sector's trend is expected to remain weak in the future. But as long as it corrects in an orderly manner, the impact is expected to be minor. However, two new GPU darlings rose against the market today; Iluvatar CoreX (09903) once surged up to 27% against the market, and Biren Tech (06082) also rose up to nearly 14% during intraday trading. Nip Chun Pong pointed out that both stocks are mainly speculating on the concept of inclusion in Stock Connect. Since foreign chip stocks are in a high-level retracement trend, the trend of rising against the market is expected to be unsustainable, and the risk of chasing high prices is high.
Apart from the aforementioned shares, Baidu (09888), which owns Kunlun Chip, also recorded a larger decline today; the stock fell up to nearly 8% this morning, a decline significantly larger than that of the two major tech giants, Tencent and Alibaba. Nip Chun Pong pointed out that Baidu's share price had accumulated a rise of over 40% from April to mid-May, far outperforming Alibaba's 20%-plus, while Tencent even fell instead of rising during the period, part of which was speculation on the concept of Kunlun Chip's listing. The market previously expected Kunlun Chip to list in June, but now that it has entered June, there is still no sign of the listing schedule. Coupled with the weakness of chip stocks, under a double blow, the stock's decline today was also relatively large. However, Nip Chun Pong believes that Baidu's share price is currently still higher than its early-April low, and advises investors to first see if the stock can continue to find support at HKD 115 before considering buying in.
