Hong Kong Stocks End 5-Week Rally as Tencent, JD.com, SMIC Earnings Loom
AM730 · 1 SOURCESabout 3 hours ago5 MIN
Summary
Hong Kong equities kicked off August on a negative note, with the Hang Seng Index dropping 216 points during the week to snap a five-week consecutive rally . The decline was driven by weak forward guidance from international memory giant SanDisk and a sharp fall in South Korean stocks, which together dampened sentiment across Asia-Pacific semiconductor and memory chip sectors . With no fresh catalysts in sight, market participants adopted a wait-and-see posture heading into a heavy week of corporate earnings .
Key Points
- The Hang Seng Index shed 216 points in the first week of August, ending a five-week upward run that had marked its longest winning streak in months .
- SanDisk's weak forward guidance and a steep decline in South Korean equities dragged down regional semiconductor sentiment, weighing on Hong Kong chip names .
- Tencent Holdings (0700.HK) will report second-quarter results on Wednesday, August 12, with Wall Street forecasting revenue growth of 9-10% year-on-year to approximately RMB 202.2-203.8 billion .
- Adjusted net profit for Tencent is expected to slow to 5-7.9% growth, reaching roughly RMB 66-68 billion, as investors focus on AI capital expenditure and gaming revenue trends .
- JD.com (9618.HK) and its affiliates JD Logistics (2618.HK), JD Health (6618.HK), and JD Industrial (7618.HK) will all report on Thursday, August 13, with外卖 (food delivery) losses seen narrowing .
- Semiconductor foundry SMIC (0981.HK) and Hua Hong Semiconductor (1347.HK) will also report on August 13, with SMIC having guided for second-quarter revenue to surge approximately 15% quarter-on-quarter and 28% year-on-year .
Why It Matters
The clustered earnings calendar will test whether Hong Kong's technology and semiconductor sectors can regain momentum after a soft August open. Investors will scrutinize Tencent's AI spending trajectory for signals about China's tech investment cycle, while SMIC's results will offer a real-time gauge of domestic chip demand amid ongoing U.S. trade restrictions .
The clustered earnings calendar will test whether Hong Kong's technology and semiconductor sectors can regain momentum after a soft August open. Investors will scrutinize Tencent's AI spending trajectory for signals about China's tech investment cycle, while SMIC's results will offer a real-time gauge of domestic chip demand amid ongoing U.S. trade restrictions .