Hong Kong's three major indices rose and fell differently, with the technology sector showing relative strength, semiconductor ETFs all rising, and gold ETFs falling. As of the close, the Hang Seng Index fell 0.57% to 25651.12 points, with a total turnover of 262.098 billion Hong Kong dollars; the Hang Seng Technology Index rose 0.34% to 4873.82 points. In terms of Hong Kong ETFs, among the products ranked by size, Ping An Fund (02800) fell 0.46% to 25.86 Hong Kong dollars; South Hang Seng Technology (03033) rose 0.21% to 4.77 Hong Kong dollars; South Double Bull Hair (07709) rose 0.84% to 81.82 Hong Kong dollars. Industry Performance 1. The semiconductor industry chain broke out across the board, with the Sci-Tech 50 Index rising 3.2% to a new historical high. Strong capital market and AI demand for domestic storage chips, related ETFs surged significantly. At the close, PP Sci-Tech 50 (03151) rose 3.55% to 12.82 Hong Kong dollars; Southern Sci-Tech Board 50 (03109) rose 3.52% to 17.66 Hong Kong dollars; Bo Shi Sci-Tech 50 (02832) rose 2.48% to 13.21 Hong Kong dollars. In terms of mainland ETFs, Sci-Tech Semiconductor ETF Huaxia (588170) rose 6.67% to 2.719 yuan; Sci-Tech Semiconductor Equipment ETF Huatai Bairui (588710) rose 6.67% to 2.814 yuan; Semiconductor Equipment ETF Huaxia (562590) rose 5.72% to 2.826 yuan. Guotai Junan Rui Xin Fund stated that with the significant increase in AI computing power demand, semiconductor equipment, the "mother machine" of chip manufacturing, is entering a high prosperity cycle. The impressive performance of several companies in the first quarter reflects strong downstream demand, especially the outbreak of demand for AI servers and high-performance computing chips, driving a wave of expansion in advanced chip production. Judging from the first-quarter report, the overall profitability of the semiconductor equipment sector is improving. Driven by multiple favorable factors such as high growth in AI computing power demand, China's semiconductor industry is progressing beyond market expectations. Optimistic about semiconductor equipment, materials, and wafer manufacturing related sectors. 2. The South Korean market ETF saw significant fluctuations during the day, with attention drawn to the breakdown of negotiations with the Samsung labor union. Related Korean ETFs plunged during the day, with losses narrowing by the close, Southern Double Bull Samsung Electronics (07747) rose 0.36% to 138.85 Hong Kong dollars; Southern Double Bull Hair (07709) rose 0.84% to 81.82 Hong Kong dollars; TR Korea (02848) fell 1.61% to 1710 Hong Kong dollars. According to market reports, on May 20, Samsung Electronics in South Korea announced another breakdown in labor negotiations, leading to a large-scale strike from May 21 to June 7, the largest in the company's history. In addition, South Korea's President Lee Jae-myung called for an "appropriate limit" to be set to collective labor actions at a cabinet meeting. Although Lee did not name Samsung, shortly before he made the statement, the Samsung Korea union leader stated that due to the breakdown in negotiations, the strike would take place on Thursday. Samsung blamed the breakdown in negotiations on the union's "excessive" demands. In addition, South Korea's Minister of Labor will lead the negotiations between Samsung and the union. Samsung and the union will resume negotiations at 4 p.m. local time. 3. International gold prices were under pressure, leading to a general decline in gold ETFs. At the close, Southern Double Bull Gold (07299) fell 3.4% to 26.1 Hong Kong dollars; Value Gold ETF (03081) fell 0.84% to 21.32 Hong Kong dollars. On May 20, gold prices continued to fall, with Shanghai gold falling 1.67% to 983.92 yuan/gram. The strong performance of the US dollar and US Treasury bonds, along with the rising expectations for interest rate hikes, pressured precious metal prices. The global bond market sell-off further escalated, with US bond yields climbing to historically extreme levels. Guo Fengda, chief analyst at Guoxin Futures, analyzed that the deep logic behind this gold price correction is the systemic transmission of geopolitical conflicts through the inflation path to the monetary policies of global central banks, with systematic inflation expectations rising and the Fed and major central banks' monetary policy stance shifting towards a neutral to "hawkish" position, putting pressure on precious metals in the short term. Institutional Views Fang Yi, Chief Strategy Analyst at Guotai Harris Finances, pointed out that for the Hong Kong stock market, despite short-term disturbances from rising interest rates, the risk is relatively manageable at the moment, with the key to market interpretation still lying in the growth trend of the AI industry: the core driving factor of this round of global equity market rally is the progress of the AI industry. Although the marginal tightening of liquidity may disturb the market in the short term, as long as there is no systemic liquidity crisis, the market's medium-term trend still depends on whether earnings can continue to materialize, namely whether the speed of earnings expectations upgrade can outpace the speed of interest rate hikes. Wan Qingyu, Global Strategy Analyst at Industrial Securities, believes that for the Hang Seng Technology Index, after the current retracement, its dynamic PE ratio is relatively low compared to most technology indices, and it is currently at the bottom of the historical range, with limited further downside potential. However, breaking out of the bottom still depends on its own profit improvement, with four key signals worth paying attention to: first, the peak of AI traffic subsidy investment; second, positive progress in the development or commercialization path of leading internet giants; third, sustained recovery in consumption and real estate data; fourth, a rebound in loose expectations for the Fed. ETF Trends On May 20, two ETFs were listed for the first time: 1. N Sci-Tech Enhanced ETF Huabao (589280) debuted, rising 1.85% to 1.045 yuan, with a turnover of 161 million yuan; it tracks the Shanghai Sci-Tech Board Comprehensive Index, covering hard technology sectors such as electronics and computers. 2. Sci-Tech Entrepreneurship 50 ETF Penghua (159012) debuted, rising 1.49% to 1.019 yuan, with a turnover of 113 million yuan; it tracks the CSI Sci-Tech Entrepreneurship 50 Index, covering leading stocks in the Sci-Tech Board and GEM industries.