Hong Kong's three major stock indices rallied collectively on August 26, with the market showing broad-based strength. As of the midday close, the Hang Seng Index rose 0.68% to 25,685.40 points, the Hang Seng Tech Index climbed 1.58%, and the Hang Seng China Enterprises Index advanced 1.23%.

Internet technology stocks posted widespread gains, with Xiaomi jumping over 4%, while Kuaishou and Meituan each added more than 2%. Chinese brokerage stocks strengthened notably, with CICC surging over 8%. Copper producers led the sector gains, with Jiangxi Copper rising more than 12%. Semiconductor stocks also moved higher, as Hua Hong Semiconductor climbed over 6%.

Chinese brokerage shares gain momentum

Brokerage stocks performed strongly, highlighted by CICC's gain of more than 8%. The surge was fueled by the wave of interim earnings reports, with several securities firms delivering impressive results and generous dividend plans that ignited market sentiment. Data shows that as of August 25, ten listed brokerages had unveiled interim dividend proposals, with total planned cash payouts reaching nearly 17 billion yuan. Major institutions such as CITIC Securities and Guotai Haitong have announced substantial distribution plans—for instance, CITIC Securities proposed a cash dividend of 4.27 yuan per 10 shares, amounting to 6.672 billion yuan in total. Despite robust earnings growth, the brokerage sector's valuation remains at relatively low levels, and this divergence between performance and valuation has attracted attention from institutional investors.

Copper stocks lead gains on record price

Copper-related stocks outperformed, with Jiangxi Copper surging over 12%. Overnight, three-month copper futures on the London Metal Exchange (LME) settled at $14,324.50 per metric ton, setting a record closing high. While the severe market squeeze seen last week has eased somewhat, short-term supply remains tight. Year-to-date, LME copper prices have climbed approximately 16%. Traders are shipping large volumes of copper to the United States, which is further depleting inventories in other regions as mines struggle to keep pace with growing demand.

Semiconductor stocks rise on capex forecast

Chip stocks advanced broadly, with Hua Hong Semiconductor gaining over 6%. Goldman Sachs has issued a fresh projection that China's semiconductor industry capital expenditures will maintain double-digit year-on-year growth through 2030, reaching a scale of $82 billion by that year—a forecast revised up by 79% compared to its estimate from a year ago. Additionally, the combined artificial intelligence capital spending from Alibaba, Tencent, ByteDance, and Baidu is expected to total approximately $102 billion in 2026, which is anticipated to bolster large-scale capacity construction within China's semiconductor sector.