Hong Kong stocks fluctuated narrowly, with the technology sector showing structural strength. As of the close, the Hang Seng Index rose by 0.05% to 26406.84 points, with total daily turnover of 288.491 billion Hong Kong dollars; the Hang Seng Technology Index rose by 0.07% to 5106.4 points. In related ETFs, E Fund (02800) rose by 0.15% to 26.54 Hong Kong dollars; Leveraged Bull Ishares (07709) rose by 23.6% to 97 Hong Kong dollars; Leveraged Bull Hengke (07226) rose by 0.19% to 4.15 Hong Kong dollars. Industry Performance The storage chip sector led the market. The South Korea KOSPI index hit a new high, with global storage chip company stocks collectively soaring. The stock prices of SK Hynix and Samsung Electronics hit historic highs, with news of SK Hynix's collaboration with Intel on the development of 2.5D packaging technology further boosting sector sentiment and driving related storage ETFs higher throughout the day. Among them, Leveraged Bull Ishares (07709) rose by 23.6% to close at 97.00 Hong Kong dollars; Leveraged Bull Samsung Electronics (07747) rose by 5.87% to close at 147.1 Hong Kong dollars. CICC International pointed out that the global storage chip industry is currently experiencing the strongest upward cycle since the turn of the century, with the intensity of this cycle higher than in previous cycles. The upward cycle is expected to continue at least until the first quarter of 2027. After long-term consolidation, the supply side is highly concentrated, and the structural demand increase brought by AI has significantly exceeded previous cycles in terms of sustainability and intensity. The semiconductor and chip sector continued its strong momentum. According to reports, ByteDance plans to increase AI infrastructure spending by 25%, which catalyzed market expectations for growth in the semiconductor industry chain, leading to gains for related semiconductor and chip ETFs across the board. Among the top products, the China-Korea Semiconductor ETF Huatai Bairui (513310) hit limit up, closing at 5.634 yuan; the Semiconductor Equipment ETF Guotai (159516) rose by 6.9% to close at 1.1 yuan; the Semiconductor Equipment ETF E Fund (159558) rose by 6.88% to close at 2.58 yuan; the Chip ETF Tianhong (159310) rose by 6.98% to close at 2.834 yuan; the Chip ETF Dongcai (159599) rose by 6.87% to close at 2.814 yuan; the Chip ETF E Fund (516350) rose by 6.7% to close at 1.641 yuan. Everbright Securities research report stated that the AI-driven token economy revolution and the strategic opportunity for domestic substitution have begun. Since 2026, the commercial value of the AI industry has experienced a structural split. The use of domestic computing power in DeepSeekV4 training for the first time marks a strategic opportunity for AI innovation and also represents an important turning point for the industrial self-confirmation of domestic computing power driven by policy. Guoyuan Securities stated that the better-than-expected performance of the Asian semiconductor sector has become a major driver of the market. Japan's rebound is significant due to the AI semiconductor market push, while South Korea's semiconductor industry performance improvement, stable central bank policy, and easing geopolitical risks have significantly increased risk appetite, with the semiconductor industry continuing to receive favorable views from institutional investors. Institutional Views Huatai Bairui, manager of the China-Korea Semiconductor ETF, analyzed that at the industrial level, the rigidity of AI computing power demand and the upward trend in storage chip prices provide solid support for the industry, with the biggest uncertainty still coming from geopolitics. Whether the Strait of Hormuz can resume navigation and whether the situation in the Middle East will escalate again will directly determine the global inflation path and risk asset preferences, with a particularly significant impact on stock markets of export-oriented economies like South Korea. Nanfang Dongying believes that the soaring rise in South Korean technology stocks is not a valuation bubble but real profit growth. The total return of Samsung Electronics and SK Hynix this year has been entirely driven by profit growth, and the seemingly sharp rise still does not fully reflect the profit growth of South Korea's leading technology companies, presenting a situation of "the higher it goes, the cheaper it gets."