In a turbulent trading session, the Hang Seng Index experienced a decline of 1.32%, losing 347 points to settle at 26,046 points. The Hang Seng Tech Index exhibited a sharper drop of 1.66%, while the overall turnover in the Hong Kong stock market reached HKD 126.1 billion during the morning session.
Despite the broader market pullback, optical communication stocks emerged as notable performers. The CPO optical module sector in the A-share market was characterized by robust activity, bolstered by better-than-expected first quarter earnings from industry player Yi Zhongtian. Cambridge Technology (06166) was a standout, soaring by 33%. Similarly, Tianyu Semiconductor (02658) saw a gain of over 7%, driven by strong demand for AI chips; the company recently began operations at its new production base in Dongguan Eco-Park.
Yuegang Bay Holdings (01396) surged more than 8%, attributing its growth to the burgeoning AI computing power business, which is anticipated to be a significant driver for the company’s future value. Chizheng Technology (09911) recorded an increase of over 6% as its flagship products, SUGO and TopTop, continue to make inroads in global markets. Wuyi Vision (06651) also rallied by over 7%, accumulating gains exceeding 60% for the week, alongside news that the founder boosted his holdings by 7.65 million shares through an Employee Stock Ownership Plan (ESOP).
Kingboard Laminates (01888) climbed by more than 6%, reaching new heights as major copper-clad laminate manufacturers announced price increases, suggesting that margins are expected to improve. Guanghe Technology (01989) rose over 4%, driven by strong demand for AI that has led to price and volume increases in printed circuit boards (PCBs); high-end PCBs for AI servers are particularly acting as a growth engine for the company.
A noteworthy development came from China Broadcast Data (00471), which skyrocketed more than 35% after signing a memorandum of understanding with SolsticeX to collaborate in the aerospace and satellite sectors. Pacific Shipping (02343) also enjoyed a boost of over 6%, as the average daily revenue from its core dry bulk vessels under time charter equivalent contracts increased by more than 10% in the first quarter.
However, not all sectors experienced gains. The market witnessed a decline in pork-related stocks, reflecting wider concerns. The ongoing drop in pork prices has outstripped most market expectations, pushing the industry into a deep losses phase. Muyuan Shares (02714) dropped 4.6%, while COFCO Joycome (01610) fell by 3.5%.
Gold stocks also faced downward pressure, linked to rising inflation due to ongoing conflicts in the Middle East and hawkish remarks from Federal Reserve Governor Milan. Zijin Gold International (02259) fell by 4.4%, and Lingbao Gold (03330) succumbed to a 3.6% drop.
In a significant debut, Qunhe Technology (00068), classified among the ‘Hangzhou’s Six Little Dragons’, surged 135% at midday, marking a notable entry as a global leader in spatial intelligence services. Meanwhile, Jushuitan (06687) faced a more challenging outlook, plunging by 7.79% as it approaches a share lock-up expiration next Tuesday, compounded by a net loss report of 1.655 billion yuan last year after a downturn from profitability.
