Semiconductors and other sectors, a huge surge! Some stocks have risen nearly 200%!

The first trading day of May, the Hong Kong stock market opened with a strong start.

On May 4th, the Hong Kong stock market opened normally, with major indices such as the Hang Seng Index and Hang Seng Tech Index all closing higher. Among them, the Hang Seng Index rose by 1.24%, the Hang Seng Tech Index increased by 2.16%, and the Hang Seng China Enterprises Index gained 1.07%.

Semiconductors, AI, and other sectors perform strongly

On May 4th, internet technology stocks generally rose, with Xiaomi Group performing particularly well, up by 6.75%; Alibaba rose over 4%, Baidu Group increased over 3%. Chip stocks also gained, with SMIC rising 1.7%, and Hua Hong Semiconductor up over 6%.

The optical communication sector remains strong, with Long Fiber Optical (601869) cable stocks up over 12%, and Cambridge Technology (603083) up over 16%.

The AI large model sector is also not to be outdone, with Zhipu surpassing 10%, and MINIMAX exceeding 12%.

In individual stocks, several stocks saw astonishing gains, with XinCheng Technology soaring by 196.15%, Zhongyuan Jianye and Futong Technology rising over 60%, and Yellow River Industrial up nearly 60%.

XinCheng Technology released its annual report on April 29th, showing that in 2025, the company’s operating revenue was approximately HKD 338 million, a year-on-year increase of 36.62%; the net profit attributable to shareholders was HKD 19.2M. According to the report, XinCheng Technology’s wholly owned subsidiary, Nichidō Intelligent Equipment Technology (Shenzhen) Co., Ltd. (“Nichidō Technology”), has been deeply engaged in SMT and semiconductor equipment manufacturing for many years, with a complete industrial chain layout and rich industry experience, providing customers with semiconductor and SMT line integration solutions. In 2025, the main business segment maintained steady growth of 5.43% amid fluctuations in manufacturing PMI, with continuous value realization from independent R&D and patent layout. In technological R&D, the company successfully broke through core material and equipment bottlenecks for 2.5D/3D advanced packaging, launching high thermal conductivity TIM, underfill glue, and high-performance packaging equipment tailored for AI chips and HBM needs. Through EVO series precision welding, offline, and mini-select welding systems, it continues to lead high-growth tracks such as semiconductors, automotive electronics, and medical devices.

Notably, Yellow River Industrial once saw a rise of over 100% today. The company announced a share swap and preemptive purchase agreement signed on April 29th, acquiring a 40% stake in Slencor AI from a trading counterparty for HKD 24 million. Slencor AI is a company incorporated in the British Virgin Islands. Its subsidiaries are engaged in AI and related technology investments and businesses, including AI agent training services such as reinforcement learning based on human feedback (RLHF), recruitment of AI-related experts, and AI-related markets.

Yellow River Industrial stated that this strategic investment will enable the group to participate in Slencor AI’s future growth and development, and it is expected that, through equity method accounting for its share of Slencor AI’s performance, it will contribute to the group’s long-term profitability.

Institutions: The Hong Kong stock market is overall in a recovery phase

It is worth noting that this year, the Hang Seng Index has been volatile, while the Hang Seng Tech Index has already fallen nearly 10%. What do institutions think about the current Hong Kong stock market?

Everbright Securities pointed out that the Hong Kong stock market is still in a recovery channel. On one hand, domestic policies continue to intensify, releasing positive signals. The Central Political Bureau meeting in April emphasized the need to make good use of existing macro policies and to effectively leverage incremental policies, aiming for high-quality, certain development to cope with external uncertainties. On the other hand, external disturbances are gradually weakening. The US-Iran conflict is showing signs of de-escalation, and US stocks have recently continued to fluctuate upward, reaching new historical highs. Under the combined influence of positive internal and external factors, the Hong Kong stock market is expected to continue its recovery.

Everbright Securities believes that, in terms of allocation, focus should be on the technology sector. Currently, Hong Kong tech stocks are at low valuation levels, with negative news exhausted, capital flowing back, and AI catalyzing a fourfold resonance window, highlighting their investment value. The AI industry chain continues to be catalyzed, with sectors such as hardware, cloud computing, and internet applications experiencing upward trends. With expectations of performance recovery and valuation re-rating, Hong Kong tech stocks have a good mid-term allocation value and are a high-quality layout direction within the current technology theme.

JiaoYin International believes that the April recovery phase has reached a critical point, and May will enter a period of intensive policy catalysis. In April, the US and Iran reached a phased ceasefire agreement, geopolitical tensions normalized, risk premiums declined, and southbound funds continued to flow in against the trend, leading the Hang Seng Index to recover from lows at the end of the quarter. The technology sector narrative returned that month, and Japanese and Korean stocks recovered relatively faster, while the valuation recovery of the Hang Seng Tech Index lagged behind. The Hang Seng Index faces technical resistance in the 26,000–26,500 point range that still needs to be broken through.

JiaoYin International also pointed out that the marginal improvement of China’s fundamentals may provide support for low levels of the Hong Kong stock market in May. The fiscal effects of the “14th Five-Year Plan” are gradually emerging, with the Ministry of Industry and Information Technology’s “AI + Manufacturing” special action continuing to advance, and industry-catalyzing signals from policies. However, the pace of domestic demand recovery and fundamental improvement’s impact on valuation uplift remains gradual rather than rapid.

(Edited by: Wang Zhiqiang HF013)

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