HK Stock Market Move | Huaqin Co., Ltd. (03296) rose over 9% as leading cloud providers ramp up capital expenditures. Institutions are optimistic about the accelerated phase of domestic computing power substitution.

Huaqin Co., Ltd. (03296) surged over 9%, as of the time of publication, up 9.4% at HK$76.75, with a trading volume of HK$136 million. On the news front, Tencent recently released its Q2 2026 financial results, significantly increasing capital expenditure due to substantial procurement of computing power, with capital expenditure in Q2 soaring to 52.784 billion yuan, a year-on-year increase of 176.3% and a quarter-on-quarter increase of 65.3%. Prior analysis by Open Source Securities pointed out that the demand side continues to validate the essential need for AI computing power, while on the supply side, domestically produced computing power is rapidly penetrating the market. A cyclical effect is already in place among major enterprises, with domestic computing power replacement entering an acceleration phase, and the large-scale deployment of domestic supernodes is being expedited. It is reported that Huaqin Co., Ltd. has built a full-stack product portfolio including AI servers, general servers, switches, storage servers, and supernodes, establishing a core supplier status among major CSP customers. The company's supernode products began small-scale shipments in Q2 and will enter a stage of large-scale delivery starting in Q3, with revenue from supernode products alone expected to surpass 10 billion yuan for the whole year, maintaining high-speed growth in the following two years as well.