On August 4, 2026, after consolidating at the end of July, the Hong Kong stock market showed strong upward momentum in the first trading week of August. The Hang Seng Index approached the 22,000-point mark during the session, hitting a high of 21,985 points, a near three-month high. At the close, the HSI was at 21,956 points, up 1.12%; the Hang Seng Tech Index performed even better, surging 2.34% to close at 4,820 points. Total market turnover exceeded HK$240 billion, with active trading and a significant return of profit-making effects.

Dual Drivers of New Energy Exports and AI Computing Power Accelerate Sector Rotation

From the market performance, today's rise in Hong Kong stocks was not an isolated move by a single sector but featured a dual-driver pattern of "new energy exports" and "AI computing infrastructure." On one hand, as the global energy transition deepens, China's new energy industry chain is accelerating its overseas market penetration through technological iteration and cost advantages. Today, the Hong Kong new energy sector saw a collective breakout, with solid-state battery and photovoltaic energy storage stocks leading the gains.

On the other hand, sustained demand for AI computing power has driven a comprehensive recovery in upstream data center infrastructure and downstream applications. Market analysis indicates that as global tech giants further implement capital expenditures in the second half of the year, Hong Kong-listed tech leaders covering data center construction, server manufacturing, and AI chip design are entering a period of earnings realization. This fundamentally driven rally is more sustainable than pure concept speculation.

Two Main Sectors Shine:

  • New Energy and Solid-State Battery Sector: Stimulated by large overseas orders and expectations of next-generation solid-state battery mass production, multiple leading companies saw their stock prices hit new highs, with net capital inflows ranking among the top sectors.
  • AI Computing Power and Data Center Sector: Catalyzed by rising computing power leasing prices, Hong Kong IDC operators and AI server OEMs received intensive institutional research, with related stocks showing signs of capital accumulation.

August Ushers in IPO Super Cycle, New Stock Market Enthusiasm Reignited

Beyond the secondary market, signals from the primary market are equally encouraging. Entering August, HKEX welcomed its busiest IPO wave since 2026. According to public data, multiple industry-leading companies launched their IPO processes this week, with total expected fundraising exceeding HK$30 billion.

Notably, this IPO wave includes solid-state battery unicorns and AI computing chip startups. The collective listing of these companies not only injects fresh blood into the Hong Kong stock market but also further enriches the investment target matrix for the tech and new energy sectors. Institutional investors generally believe that the return of high-quality innovative enterprises to list in Hong Kong will reshape the valuation system of the Hong Kong tech sector and attract more global long-term capital allocation.

Southbound Funds Continue Buying, Mainland Capital Pricing Power Further Strengthened

Capital flow is the core foundation supporting this round of Hong Kong stock rebound. Today, southbound funds continued to show net buying, with a total net purchase of HK$8.5 billion. From the perspective of capital flow preferences, high-dividend defensive assets and high-growth tech stocks exhibited a "dual-track" allocation pattern. This indicates that mainland capital, while locking in dividend yields, has not given up on pursuing growth assets.

Industry analysis suggests that since 2026, the pricing power of southbound funds in the Hong Kong stock market has been further consolidated. With the optimization of the Stock Connect threshold and the gradual implementation of the RMB counter mechanism, the channel for mainland capital inflows into Hong Kong stocks has become smoother. Against the backdrop of ongoing uncertainty in the overseas macro environment, the sustained "buying spree" by mainland capital has built a solid bottom support for Hong Kong stocks, enabling the market to show greater resilience in the face of external shocks.

Technical Analysis and Market Outlook: Breaking Key Level Requires Volume Support

From a technical analysis perspective, after successfully holding the 21,500-point support level, the Hang Seng Index broke above the upper band of the previous descending channel. The 22,000-point mark is now the focal point of contention between bulls and bears. If total market turnover can be sustained above HK$250 billion in the coming trading days, the probability of the HSI effectively breaking through 22,000 points and challenging the 22,500-point area is relatively high.

The Agu Wall Street macro strategy team noted that the Hong Kong stock market is currently transitioning from valuation repair to earnings-driven growth. Although some popular sectors face short-term profit-taking pressure, in the medium to long term, under the triple resonance of policy support, corporate earnings recovery, and improved liquidity, the allocation value of Hong Kong stocks remains prominent. Investors are advised to avoid blindly chasing highs in their operations, focusing instead on industry leaders with better-than-expected interim results and sustainable dividend capacity, as well as the new energy and AI computing power tracks representing the direction of new quality productive forces.

Overall, the Hong Kong stock market in August has demonstrated its unique appeal with a strong start. Against the backdrop of an IPO boom and capital flow resonance, Hong Kong stocks are gradually emerging from the previous gloom, and a structural slow bull market is worth looking forward to. Investors should closely follow industry trends and seek opportunities to accumulate quality assets at low prices amid volatility.