Hong Kong stocks oscillated narrowly, with the technology sector showing structural strength. As of the close, the Hang Seng Index rose by 0.05% to 26,406.84 points, with a total daily turnover of 288.91 billion Hong Kong dollars; the Hang Seng Technology Index rose by 0.07% to 5,106.4 points. In related ETFs in Hong Kong stocks, Yin Fu Fund (02800) rose by 0.15% to 26.54 Hong Kong dollars; Leveraged Long Hailishi (07709) rose by 23.6% to 97 Hong Kong dollars; Southbound Leveraged Hengke (07226) rose by 0.19% to 4.15 Hong Kong dollars. Industry Performance The storage chip sector led the market. The South Korean KOSPI index hit a new high again, with global storage chip company stocks collectively surging. The prices of SK Hynix and Samsung Electronics hit historic highs simultaneously. The news of SK Hynix's collaboration with Intel in developing 2.5D packaging technology further boosted the sector's sentiment, leading related storage ETFs to perform strongly throughout the day. Among them, Southbound Leveraged Hailishi (07709) rose by 23.6% to a closing price of 97.00 Hong Kong dollars; Southbound Leveraged Samsung Electronics (07747) rose by 5.87% to a closing price of 147.1 Hong Kong dollars. CICC International pointed out that the global storage chip industry is currently experiencing the strongest upward cycle since the beginning of this century, with a cycle intensity higher than previous cycles, and the upward cycle is expected to last at least until the first quarter of 2027. After a long period of consolidation, the supply side of the industry is highly concentrated. In addition to the structural demand increment brought by AI, the sustainability and intensity of this cycle significantly surpass previous ones. The semiconductor and chip sectors continued their strong momentum. According to reports, ByteDance plans to increase AI infrastructure spending by 25%, which has strengthened the market's expectations for growth in the semiconductor industry chain, leading related semiconductor and chip ETFs to rise across the board. Among the top-performing products, the Chinese and South Korean Semiconductor ETF Huatai Bairui (513310) hit the daily limit, with a closing price of 5.634 yuan; the Semiconductor Equipment ETF Guotai (159516) rose by 6.9% to a closing price of 1.1 yuan; the Semiconductor Equipment ETF E Fund (159558) rose by 6.88% to a closing price of 2.58 yuan; the Chip ETF Tianhong (159310) rose by 6.98% to a closing price of 2.834 yuan; the Chip ETF Dongcai (159599) rose by 6.87% to a closing price of 2.814 yuan; the Chip ETF E Fund (516350) rose by 6.7% to a closing price of 1.641 yuan. Dongwu Securities research report stated that the revolution of Token economy driven by intelligent bodies and the strategic opportunities for domestic substitution have begun. Since 2026, the commercial value of the AI industry has experienced a structural fission. The first use of domestic computing power in training by DeepSeekV4 marks the strategic opportunity period for AI innovation, and is also an important turning point for domestic computing power to move from policy-driven to industry self-verification. Guoyuan Securities stated that the outperformance of the Asian semiconductor sector was a major driver for the market, with Japan experiencing a significant rebound driven by the AI semiconductor market, and South Korea seeing a noticeable increase in risk appetite due to the improving semiconductor performance, stable central bank policies, and easing geopolitical risks, with the semiconductor industry continuing to be favored by institutional investors. Institutional Views The manager of the Huatai Bairui Fund of the Chinese and South Korean Semiconductor ETFs 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 greatest uncertainty still coming from geopolitical issues. Whether the Strait of Hormuz can resume navigation, whether the situation in the Middle East will escalate again, will directly determine the global inflation path and risk asset preference, which will have a significant impact on stock markets of export-oriented economies like South Korea. Nanfang Dongying believes that the skyrocketing gains of South Korean technology stocks are not based on speculative valuation bubbles, but on real profit growth. The total returns of Samsung Electronics and SK Hynix this year have been driven entirely by profit growth. The seemingly sharp gains still do not fully reflect the profit growth of South Korea's leading tech companies, presenting a situation of "the higher it goes, the cheaper it gets".