[ET Net News Agency, 28 July 2026] Nvidia is advancing a new round of artificial intelligence-related transactions, with a potential scale exceeding USD 750 billion, reigniting market concerns over circular financing and fears that industry demand and valuations are being artificially inflated. Talk of an AI bubble is rife once more, dragging down AI concept stocks collectively. Coupled with tech stocks seeing their intraday gains narrow, the Hong Kong stock market opened higher before falling, yet narrowly held onto the 100-day moving line (around 25,176) breached on 27 July. The HSI closed the half-day at 25,178, down 28 points or 0.1%, with main board turnover exceeding HKD 140.5 billion. The Hang Seng China Enterprises Index reported 8,385, up 19 points or 0.2%. The Hang Seng Tech Index reported 4,709, up 7 points or 0.2%.
"Wan Kong Shing: Market resistance at 25,440 points"
External news brought multiple developments. The US and Iran are reportedly conducting diplomatic negotiations to end the conflict, and the external situation seems to show signs of easing. An enterprise with Shanghai state-owned assets backing is reportedly mass-producing DUV lithography machines and will deliver them to a host of Mainland China chip enterprises. Following this, the Federal Reserve will announce its rate decision, and tech giants such as Microsoft and Meta will release their results. Today, Hong Kong stock market trading opened by extending the previous day's gains, seeing a morning high of 25,440 points before gains turned into losses, currently down 28 points. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that the market's early morning gains today were mainly driven by news of China mass-producing lithography machines. The subsequent narrowing of gains reflects that after days of hitting record highs, the HSI lacks further upward momentum, appearing to send a signal of high-level consolidation. It is expected that today's high level around the 25,440 point mark will serve as recent resistance for the HSI.
Wan Kong Shing believes that overall market performance remains relatively strong, though subsequent market trends still depend on whether the Federal Reserve's rate decision proves overly hawkish, and whether the latest earnings performance and capital expenditure of tech giants can meet market expectations. Given that inflationary clouds continue to loom, an interest rate rise by the Federal Reserve cannot be ruled out. In addition, although US-Iran tensions have somewhat eased, the situation in the Red Sea remains unclear. However, Wan Kong Shing added that the US side is expected to maintain restraint on the eve of the rate decision, meaning geopolitical risks will have limited short-term impact, and external conditions have a chance to moderate appropriately.
Wan Kong Shing stated that the broader market will first look to see whether it can hold the 10-day line (around 24,997 points), as the HSI has not clearly fallen below the 10-day line in recent days. If it can continue to hold this indicator firmly, the market's strong pattern will remain unchanged; if it fails to hold, support is seen at 24,800. However, Wan Kong Shing believes that after days of consecutive rises, even a relatively large correction for the HSI would be reasonable.
"SMIC and Hua Hong experience deep corrections, suitable for trading ranges"
China's news of mass-producing domestic lithography machines not only caused the US semiconductor sector to weaken, with Nvidia (US.NVDA) dropping nearly 5% and losing the USD 200 mark, and AMD (US.AMD) falling 5.2%, but also left the Hong Kong stock chip sector similarly weak. SMIC (00981), which benefits from domestic chip deliveries, still fell 1.3% to report at HKD 69.7, while Hua Hong (01347) dropped 6.5% to report at HKD 139. Wan Kong Shing explained that the chip sector has been weak for some time. The core issue lies in market concerns that the sector is already experiencing overcapacity, and China's news of mass-producing DUV lithography machines has further "fuelled the fire" regarding these concerns. Therefore, even though SMIC and Hua Hong benefit from Mainland China chip deliveries and avoid the risk of being "choke-held", downward pressure on their market value remains.
Wan Kong Shing noted that the trends of SMIC and Hua Hong have turned weak and have undergone deep corrections, currently sitting in a downward range. In the future, if tech giants such as Microsoft and Meta exceed earnings expectations, and if the Federal Reserve's rate statement is not overly hawkish, they are expected to have a chance of rebounding for range trading. SMIC's current support level is at its recent low of around HKD 66.25, with an upside target of HKD 90. Short-term operations could involve buying a stake at the current level first, adding another stake near HKD 66.5, with a stop-loss at HKD 64.8. Hua Hong's first support level is seen at HKD 135; if breached, attention should be paid to support at the 100-day line (around HKD 128.6), with an upside target of HKD 150.
"Wan Kong Shing: Market resistance at 25,440 points"
External news brought multiple developments. The US and Iran are reportedly conducting diplomatic negotiations to end the conflict, and the external situation seems to show signs of easing. An enterprise with Shanghai state-owned assets backing is reportedly mass-producing DUV lithography machines and will deliver them to a host of Mainland China chip enterprises. Following this, the Federal Reserve will announce its rate decision, and tech giants such as Microsoft and Meta will release their results. Today, Hong Kong stock market trading opened by extending the previous day's gains, seeing a morning high of 25,440 points before gains turned into losses, currently down 28 points. Wan Kong Shing, the Chief Investment Officer of iFAST Global Markets, told ET Net News Agency that the market's early morning gains today were mainly driven by news of China mass-producing lithography machines. The subsequent narrowing of gains reflects that after days of hitting record highs, the HSI lacks further upward momentum, appearing to send a signal of high-level consolidation. It is expected that today's high level around the 25,440 point mark will serve as recent resistance for the HSI.
Wan Kong Shing believes that overall market performance remains relatively strong, though subsequent market trends still depend on whether the Federal Reserve's rate decision proves overly hawkish, and whether the latest earnings performance and capital expenditure of tech giants can meet market expectations. Given that inflationary clouds continue to loom, an interest rate rise by the Federal Reserve cannot be ruled out. In addition, although US-Iran tensions have somewhat eased, the situation in the Red Sea remains unclear. However, Wan Kong Shing added that the US side is expected to maintain restraint on the eve of the rate decision, meaning geopolitical risks will have limited short-term impact, and external conditions have a chance to moderate appropriately.
Wan Kong Shing stated that the broader market will first look to see whether it can hold the 10-day line (around 24,997 points), as the HSI has not clearly fallen below the 10-day line in recent days. If it can continue to hold this indicator firmly, the market's strong pattern will remain unchanged; if it fails to hold, support is seen at 24,800. However, Wan Kong Shing believes that after days of consecutive rises, even a relatively large correction for the HSI would be reasonable.
"SMIC and Hua Hong experience deep corrections, suitable for trading ranges"
China's news of mass-producing domestic lithography machines not only caused the US semiconductor sector to weaken, with Nvidia (US.NVDA) dropping nearly 5% and losing the USD 200 mark, and AMD (US.AMD) falling 5.2%, but also left the Hong Kong stock chip sector similarly weak. SMIC (00981), which benefits from domestic chip deliveries, still fell 1.3% to report at HKD 69.7, while Hua Hong (01347) dropped 6.5% to report at HKD 139. Wan Kong Shing explained that the chip sector has been weak for some time. The core issue lies in market concerns that the sector is already experiencing overcapacity, and China's news of mass-producing DUV lithography machines has further "fuelled the fire" regarding these concerns. Therefore, even though SMIC and Hua Hong benefit from Mainland China chip deliveries and avoid the risk of being "choke-held", downward pressure on their market value remains.
Wan Kong Shing noted that the trends of SMIC and Hua Hong have turned weak and have undergone deep corrections, currently sitting in a downward range. In the future, if tech giants such as Microsoft and Meta exceed earnings expectations, and if the Federal Reserve's rate statement is not overly hawkish, they are expected to have a chance of rebounding for range trading. SMIC's current support level is at its recent low of around HKD 66.25, with an upside target of HKD 90. Short-term operations could involve buying a stake at the current level first, adding another stake near HKD 66.5, with a stop-loss at HKD 64.8. Hua Hong's first support level is seen at HKD 135; if breached, attention should be paid to support at the 100-day line (around HKD 128.6), with an upside target of HKD 150.
