On February 19, 2025, the Hong Kong stock market closed with mixed performance. The Hang Seng Index (HSI) edged down 0.14%, while the Hang Seng Tech Index (HSTECH) rose 0.59%.
The semiconductor sector stood out with strong gains. SMIC surged 8.37% to hit a new high, with a trading volume exceeding HK$9.6 billion. Hua Hong Semiconductor also saw a significant increase of nearly 23%. The sector's rally was driven by growing global demand for AI and high-performance computing, with the global semiconductor market expected to grow by over 15% in 2025.
Mengniu Dairy soared 10.36% despite issuing a profit warning, citing a more than 90% drop in annual net profit due to goodwill impairments related to Bellamy's and Modern Dairy. Investors remained optimistic as the company assured stable operating cash flow and unaffected dividend payouts.
In the tech sector, Xiaomi rose 2.17% to a record high, with multiple investment banks raising its target price, citing strong Q4 performance and growth prospects in high-end smartphones and IoT. Meanwhile, Meituan fell 3.01%, and Alibaba dropped 1.74% ahead of its Q3 FY2025 earnings release, which Morgan Stanley views as a key catalyst for assessing China's AI investment trends.
The automotive sector saw mixed performance, with Li Auto rising 1.65% and XPeng gaining 4.02%, while NIO fell 1.69%.
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