Semiconductor Rally Drives Hong Kong Stocks as Tech Recovery Gains Momentum

Hong Kong’s stock market opened strongly on May 4, with major indices all rising. The Hang Seng Index gained 1.24%, the Hang Seng Tech Index rose 2.16%, and the Hang Seng China Enterprises Index added 1.07%. Internet technology stocks broadly advanced, led by Xiaomi Group up 6.75%, Alibaba up more than 4%, and Baidu up more than 3%. Chip stocks also strengthened, with SMIC rising 1.7% and Hua Hong Semiconductor climbing more than 6%.

Individual stocks delivered eye‑catching gains. Chipset Technology surged 196.15%, while Zhongyuan Jianye and Futong Technology rose more than 60%, and Yellow River Industrial gained nearly 60%. Chipset Technology’s annual report showed 2025 revenue of HKD 338 million, up 36.62% year‑on‑year, with profit attributable to shareholders of HKD 19.197 million. Its subsidiary Nitron Technology has long specialized in SMT and semiconductor equipment manufacturing, offering full‑line solutions. In 2025, it maintained 5.43% growth despite PMI fluctuations, with R&D breakthroughs in 2.5D/3D advanced packaging materials and equipment. Products such as high‑thermal‑conductivity TIM, underfill adhesives and high‑performance packaging equipment for AI chips and HBM demand, along with EVO series precision welding and selective soldering systems, positioned it at the forefront of semiconductors, automotive electronics and medical equipment.

Yellow River Industrial’s surge was linked to its April 29 announcement of a share swap and right of first refusal agreement to acquire 40% of Slencor AI for HKD 24 million. Slencor AI, registered in the British Virgin Islands, engages in AI and related technology investment, including RLHF agent training, AI talent recruitment and AI‑related markets. Yellow River Industrial said the strategic investment will allow participation in Slencor AI’s growth and contribute to long‑term profitability through equity‑method recognition.

Institutions view the Hong Kong market as in recovery. Everbright Securities noted domestic policy support and easing external risks, with the April Politburo meeting emphasizing effective use of macro and incremental policies. The U.S.‑Iran conflict is cooling and U.S. equities are at record highs, supporting Hong Kong’s recovery. Everbright highlighted technology as the key allocation sector, citing low valuations, capital inflows and AI catalysts. Hardware, cloud computing and internet applications are improving, and with earnings recovery and valuation re‑rating, Hong Kong tech offers strong medium‑term value.

BOCOM International said April’s recovery reached a critical point, with May entering a policy‑catalyst period. The U.S.‑Iran ceasefire reduced risk premiums, southbound funds flowed in, and the Hang Seng Index rebounded from lows. Tech narratives returned, with Japan and Korea recovering faster, while Hang Seng Tech’s valuation recovery lagged. Technical resistance remains at 26,000–26,500 points. BOCOM added that China’s fundamentals are improving, with fiscal front‑loading and the MIIT’s “AI + Manufacturing” initiative providing catalysts. However, domestic demand recovery and valuation uplift remain gradual.