[ET Net News Agency, 05 August 2026] US Treasury Secretary Scott Bessent stated that an agreement might be reached with Iran between Tuesday and Wednesday to open the Strait of Hormuz. US stock markets surged in response, with both the Dow Jones and S&P 500 hitting record highs. A collective upward correction in chip stocks also boosted the stock markets of Japan and Korea. However, Hong Kong stocks showed volatile performance, with the HSI closing the half-day at 25,881, up 28 points or 0.1%, lacking the momentum to break through the 26,000 mark while continuing to consolidate above the 250-day moving average (around 25,727). The Hang Seng China Enterprises Index closed at 8,595, up 21 points or 0.2%. The Hang Seng TECH Index closed at 4,938, up 53 points or 1.1%. Main board turnover was nearly HKD 143 billion, with southbound net inflow at less than HKD 100 million for the half-day.
"Mak Ka Ka: Delivering on earnings does not necessarily mean Hong Kong stocks will rise"
With the US and Iran reaching another agreement regarding the Strait of Hormuz, US stocks performed well overnight, driving the Philadelphia Semiconductor Index up by over 6%. Asian stock markets generally performed well this morning, while Hong Kong stocks maintained high-level consolidation, keeping a slight gain by midday. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that after a cumulative rise of 13% from low levels, the momentum of Hong Kong stocks has weakened significantly. External factors, including geopolitics and interest rate expectations, have limited the market's risk premium. Nevertheless, the market continues to seek thematic sectors amid uncertainty, with recent capital rotation into AI, optical communications, new economy, and Mainland China-related value stocks, reflecting a narrow market breadth where capital prefers trading individual stocks over the broader market. Therefore, she expects the HSI to fluctuate within a range of 500 points above and below 26000 during the early part of the earnings season.
Mak Ka Ka is initially optimistic about the Hong Kong stock earnings season, especially given that HSBC's (00005) solid quarterly results yesterday boosted expectations for other Hong Kong stocks. However, she believes the market is filled with optimism, and highly anticipated earnings stocks must successfully meet or even exceed expectations to further boost share prices; otherwise, they are prone to profit-taking retreats, and investors should carefully balance price positioning and portfolio rotation.
"Uncertainty remains over US import ban enforcement, ZJ InnoLight takes advantage of news to pull back"
According to Reuters citing people familiar with the matter, the US is considering banning imports of new models of optical transceivers. Such components are part of fibre optic networks and serve as core hubs for internal transmission within data centres. The US has precisely targeted these transceivers manufactured in Mainland China, initially banning the import of all new models of optical transceivers before subsequently exempting many non-Chinese suppliers, thereby achieving the goal of targeting and suppressing China. The report named ZJ InnoLight (03308), which was recently newly listed as an H-share, stating it would be affected. Following the news, ZJ InnoLight's share price came under pressure, briefly falling through its "golden base" during trading before narrowing its decline, dropping by about 5% by midday, while the performance of other optical communication concept stocks diverged.
Mak Ka Ka pointed out that the main reason ZJ InnoLight was singled out is because the company is an industry leader, accounting for approximately 27% of the global market share in the relevant transceiver industry, so if the measures are implemented, it could indeed reduce its industry market share. However, she noted that the company was already placed on the US "1260H" military-linked list back in June, but has yet to experience any immediate impact. Moreover, the latest news has not yet been confirmed, and even if implemented subsequently, it still faces multiple hurdles in the US Congress, so the actual impact on ZJ InnoLight is temporarily not very large.
Mak Ka Ka emphasised that relevant policy factors do not actually affect ZJ InnoLight's fundamentals, and the company still retains its advantage as an industry leader. When trading, greater emphasis should be placed on fundamental expectations rather than short-term policy news. However, she agreed that some of ZJ InnoLight's customers might reduce procurement of its products due to subsequent policy factors, so the company should promptly disclose its revenue proportion in the US to dispel market doubts. Currently, uncertainties will affect investors' investment appetite for the shares. From a technical perspective, Mak Ka Ka believes that ZJ InnoLight has accumulated a certain rise, and adjusting and pulling back on the news is understandable. Before the company announces countermeasures or clarifies the policy impact, the share price will face a certain amount of downward pressure, and medium-to-long-term investors can wait for lower levels to enter.
"Mak Ka Ka: Delivering on earnings does not necessarily mean Hong Kong stocks will rise"
With the US and Iran reaching another agreement regarding the Strait of Hormuz, US stocks performed well overnight, driving the Philadelphia Semiconductor Index up by over 6%. Asian stock markets generally performed well this morning, while Hong Kong stocks maintained high-level consolidation, keeping a slight gain by midday. Mak Ka Ka, Head of Financial Products Trading and Research Department of SinoPac Securities (Asia), told ET Net News Agency that after a cumulative rise of 13% from low levels, the momentum of Hong Kong stocks has weakened significantly. External factors, including geopolitics and interest rate expectations, have limited the market's risk premium. Nevertheless, the market continues to seek thematic sectors amid uncertainty, with recent capital rotation into AI, optical communications, new economy, and Mainland China-related value stocks, reflecting a narrow market breadth where capital prefers trading individual stocks over the broader market. Therefore, she expects the HSI to fluctuate within a range of 500 points above and below 26000 during the early part of the earnings season.
Mak Ka Ka is initially optimistic about the Hong Kong stock earnings season, especially given that HSBC's (00005) solid quarterly results yesterday boosted expectations for other Hong Kong stocks. However, she believes the market is filled with optimism, and highly anticipated earnings stocks must successfully meet or even exceed expectations to further boost share prices; otherwise, they are prone to profit-taking retreats, and investors should carefully balance price positioning and portfolio rotation.
"Uncertainty remains over US import ban enforcement, ZJ InnoLight takes advantage of news to pull back"
According to Reuters citing people familiar with the matter, the US is considering banning imports of new models of optical transceivers. Such components are part of fibre optic networks and serve as core hubs for internal transmission within data centres. The US has precisely targeted these transceivers manufactured in Mainland China, initially banning the import of all new models of optical transceivers before subsequently exempting many non-Chinese suppliers, thereby achieving the goal of targeting and suppressing China. The report named ZJ InnoLight (03308), which was recently newly listed as an H-share, stating it would be affected. Following the news, ZJ InnoLight's share price came under pressure, briefly falling through its "golden base" during trading before narrowing its decline, dropping by about 5% by midday, while the performance of other optical communication concept stocks diverged.
Mak Ka Ka pointed out that the main reason ZJ InnoLight was singled out is because the company is an industry leader, accounting for approximately 27% of the global market share in the relevant transceiver industry, so if the measures are implemented, it could indeed reduce its industry market share. However, she noted that the company was already placed on the US "1260H" military-linked list back in June, but has yet to experience any immediate impact. Moreover, the latest news has not yet been confirmed, and even if implemented subsequently, it still faces multiple hurdles in the US Congress, so the actual impact on ZJ InnoLight is temporarily not very large.
Mak Ka Ka emphasised that relevant policy factors do not actually affect ZJ InnoLight's fundamentals, and the company still retains its advantage as an industry leader. When trading, greater emphasis should be placed on fundamental expectations rather than short-term policy news. However, she agreed that some of ZJ InnoLight's customers might reduce procurement of its products due to subsequent policy factors, so the company should promptly disclose its revenue proportion in the US to dispel market doubts. Currently, uncertainties will affect investors' investment appetite for the shares. From a technical perspective, Mak Ka Ka believes that ZJ InnoLight has accumulated a certain rise, and adjusting and pulling back on the news is understandable. Before the company announces countermeasures or clarifies the policy impact, the share price will face a certain amount of downward pressure, and medium-to-long-term investors can wait for lower levels to enter.
