[ET Net News Agency, 10 July 2026] Despite the uncertain situation in the Middle East, the market continued to downplay the negative factors of geopolitical politics. With AI concepts being sought after, global stock markets generally rose. The HSI opened 183 points higher this morning and fluctuated in the early session, with the gains narrowing to dozens of points at one point, hitting a low of 24,064. However, technology stocks were sought after, and biotech stocks also surged, driving the HSI higher and higher. The HSI closed up 446 points or 1.9% at 24,476 at midday, with turnover on the Main Board exceeding HKD 188.4 billion. The Hang Seng China Enterprises Index rose 145 points or 1.8% to 8,143. The Hang Seng Tech Index rose 127 points or 2.7% to 4,858.
"Ng Lai Yin: Southbound capital inflows drive rebound in Hong Kong stocks"
The HSI has performed well since July, hovering at the 24,400 level today, successfully holding above the 24,000 major mark, as southbound capital continued to buy. Ng Lai Yin, a securities strategist at Everbright Securities, told ET Net News Agency that the rebound of traditional large-scale technology and internet stocks led the HSI upwards, becoming the strongest support for the market. Furthermore, after entering July, the trend of southbound capital flowing back into Hong Kong stocks has strengthened significantly. Given the heavy decline of Hong Kong stocks in June, a rebound is now occurring. Under the pattern where large technology stocks maintain their strength, this upward momentum has a chance to continue. Currently, the market has temporarily steadied above the 24,000 mark and the 20-day line (around 23,746), and the next step will be to look up to the vicinity of the 50-day line (around 24,907).
Hong Kong stocks are about to welcome the peak period of interim results in August. Regarding concerns that heavyweight stocks might face earnings pressure due to increased investments in various AI projects, Ng stated directly that he has little concern about this, believing that the relevant costs may not be fully reflected in this quarter's results. He reminded that how the market interprets results is often linked to the investment sentiment at that time. He pointed out that the results of technology stocks over the past one or two quarters have met expectations, and although not very brilliant, they were fair. The previous decline in the stock prices of these technology stocks was mainly because the market was primarily speculating on artificial intelligence concepts, and traditional technology companies had a low proportion of AI business at that time, so they were temporarily out of favour with the market.
Ng also pointed out that investors must closely watch the second-quarter GDP data to be released by Mainland China next week. He expects that a slowdown in second-quarter GDP growth compared to the first quarter is inevitable, and the market focus will be on the actual magnitude of the slowdown, and whether it will shake market confidence in Mainland China achieving its full-year growth target of 4.5% to 5%. In addition, Mainland China's domestic demand and export data will also sway market conditions. Ng particularly reminded that the current volatility of external technology stocks has intensified, triggering a significant capital rotation effect in the Hong Kong stock market, and investors should closely monitor the future trend of US tech stocks.
"Favourable policies drive biotech stocks back on an upward track"
Recently, in addition to the market's enthusiasm for AI concept stocks, the performance of biotechnology stocks has also been quite brilliant, with shares related to the biotechnology index all performing well this morning. Ng said that the rise in biotech stocks mainly benefited from Mainland China's release of the "National Essential Medicines List", a document aimed at encouraging the development of innovative medicines and helping to include relevant medicines into the medical insurance scope in the future. Coupled with Mainland China's continuous introduction of policies to support pharmaceutical innovation, this has released a clear positive signal for the entire industry.
Ng pointed out that the biotech sector is currently on a re-ascending track after adjustment, and the sector's trend is expected to remain positive in the next one or two months. However, he stressed that the investment logic of the biotech sector hinges on the fundamentals of individual enterprises. He believes that if an enterprise has achieved profitability, it will provide clear support for the stock price. Furthermore, the success rate of product research and development as well as the prospects of medicine applications are also core considerations, and he suggests that investors should screen based on the quality of individual companies.
Among the many biotech stocks, Ng singled out and favoured medicine research and development platforms, such as WuXi-related shares, including WuXi AppTec (02359), WuXi Bio (02269), and WuXi XDC (02268). In addition, he also favours Innovent Bio (01801), which has a profitable foundation, and BeOne Medicines (06160), which has ideal medicine sales performance. He suggested that investors interested in positioning in BeOne Medicines could observe the stock price trend patiently and absorb it when it falls back to around the HKD 180 level.
"Ng Lai Yin: Southbound capital inflows drive rebound in Hong Kong stocks"
The HSI has performed well since July, hovering at the 24,400 level today, successfully holding above the 24,000 major mark, as southbound capital continued to buy. Ng Lai Yin, a securities strategist at Everbright Securities, told ET Net News Agency that the rebound of traditional large-scale technology and internet stocks led the HSI upwards, becoming the strongest support for the market. Furthermore, after entering July, the trend of southbound capital flowing back into Hong Kong stocks has strengthened significantly. Given the heavy decline of Hong Kong stocks in June, a rebound is now occurring. Under the pattern where large technology stocks maintain their strength, this upward momentum has a chance to continue. Currently, the market has temporarily steadied above the 24,000 mark and the 20-day line (around 23,746), and the next step will be to look up to the vicinity of the 50-day line (around 24,907).
Hong Kong stocks are about to welcome the peak period of interim results in August. Regarding concerns that heavyweight stocks might face earnings pressure due to increased investments in various AI projects, Ng stated directly that he has little concern about this, believing that the relevant costs may not be fully reflected in this quarter's results. He reminded that how the market interprets results is often linked to the investment sentiment at that time. He pointed out that the results of technology stocks over the past one or two quarters have met expectations, and although not very brilliant, they were fair. The previous decline in the stock prices of these technology stocks was mainly because the market was primarily speculating on artificial intelligence concepts, and traditional technology companies had a low proportion of AI business at that time, so they were temporarily out of favour with the market.
Ng also pointed out that investors must closely watch the second-quarter GDP data to be released by Mainland China next week. He expects that a slowdown in second-quarter GDP growth compared to the first quarter is inevitable, and the market focus will be on the actual magnitude of the slowdown, and whether it will shake market confidence in Mainland China achieving its full-year growth target of 4.5% to 5%. In addition, Mainland China's domestic demand and export data will also sway market conditions. Ng particularly reminded that the current volatility of external technology stocks has intensified, triggering a significant capital rotation effect in the Hong Kong stock market, and investors should closely monitor the future trend of US tech stocks.
"Favourable policies drive biotech stocks back on an upward track"
Recently, in addition to the market's enthusiasm for AI concept stocks, the performance of biotechnology stocks has also been quite brilliant, with shares related to the biotechnology index all performing well this morning. Ng said that the rise in biotech stocks mainly benefited from Mainland China's release of the "National Essential Medicines List", a document aimed at encouraging the development of innovative medicines and helping to include relevant medicines into the medical insurance scope in the future. Coupled with Mainland China's continuous introduction of policies to support pharmaceutical innovation, this has released a clear positive signal for the entire industry.
Ng pointed out that the biotech sector is currently on a re-ascending track after adjustment, and the sector's trend is expected to remain positive in the next one or two months. However, he stressed that the investment logic of the biotech sector hinges on the fundamentals of individual enterprises. He believes that if an enterprise has achieved profitability, it will provide clear support for the stock price. Furthermore, the success rate of product research and development as well as the prospects of medicine applications are also core considerations, and he suggests that investors should screen based on the quality of individual companies.
Among the many biotech stocks, Ng singled out and favoured medicine research and development platforms, such as WuXi-related shares, including WuXi AppTec (02359), WuXi Bio (02269), and WuXi XDC (02268). In addition, he also favours Innovent Bio (01801), which has a profitable foundation, and BeOne Medicines (06160), which has ideal medicine sales performance. He suggested that investors interested in positioning in BeOne Medicines could observe the stock price trend patiently and absorb it when it falls back to around the HKD 180 level.
