Today, the Hong Kong stock market opened low and continued to fall, with all three major indexes falling collectively towards the end of the day. Global chip and semiconductor heavyweight stocks surged, with related semiconductor, Nasdaq, storage, and South Korea tracking ETFs all showing strength. By the closing bell, the Hang Seng Index dropped by 1.06% to 25328.23 points, with a total turnover of 3207.58 billion Hong Kong dollars; the Hang Seng Technology Index fell by 0.79% to 4907.57 points. In terms of Hong Kong ETFs, among the top products in terms of scale, Yu Fook Fund (02800) fell by 1.01% to 25.56 Hong Kong dollars; Southern Double Long Hailishi (07709) rose by 22.01% to 132.5 Hong Kong dollars; Hang Seng China Enterprises (02828) fell by 1.38% to 86.94 Hong Kong dollars. Industry Performance 1. U.S. chip stocks surged, combined with the triggering of a circuit breaker in the South Korean stock market, leading to a rise in semiconductor and Nasdaq ETFs. By the closing bell, the China-Korea Semiconductor ETF Huatai Bairui (513310) rose by 5.69% to 6.498 yuan; the Asia-Pacific Select ETF Southern (159687) rose by 5.07% to 1.927 yuan; the E Fund Asia Semiconductor ETF (03486) rose by 3.02% to 23.22 Hong Kong dollars; the Nasdaq ETF GF (159941) rose by 2.17% to 1.649 yuan at the closing bell. Overnight, the U.S. chip semiconductor sector collectively surged, with the S&P 500 and Nasdaq hitting new highs, and UBS significantly raised its target price for Micron Technology. At the same time, the KOSPI index in South Korea soared today, triggering a circuit breaker, SK Hailishi's market value exceeded 1 trillion U.S. dollars, and the labor agreement of Samsung Electronics was approved temporarily easing strike risks. With multiple positive factors resonating, related semiconductor and Nasdaq ETFs all showed strength. In the domestic market, Xinda Securities stated that AI investment is driving strong demand for the semiconductor industry chain, leading Chinese storage leader Changxin Technology to achieve explosive growth in performance. With its A-share initial public offering under review and Changjiang Storage starting IPO counseling, the semiconductor equipment sector is expected to see significant catalysts. It is suggested to focus on downstream expansion and domestic substitution in the semiconductor equipment sector. 2. Risk mitigation for Samsung combined with a new high for KOSPI, South Korea and storage ETFs showed strength throughout the day. By the closing bell, the Southern Double Long Hailishi (07709) rose by 22.01% to 132.5 Hong Kong dollars; the Southern Double Long Samsung Electronics (07747) rose by 6.48% to 167.6 Hong Kong dollars; TR Korea (02848) rose by 4.09% to 1997 Hong Kong dollars. According to CCTV News, the internal voting results of Samsung Electronics were announced on May 27th, with 73.7% approval for the interim agreement reached by both labor and management, temporarily easing the risk of a major strike at Samsung Electronics. On the same day, the KOSPI index in South Korea saw an increase of up to 5% triggering a circuit breaker again, with SK Hailishi's market value exceeding 1 trillion U.S. dollars. Hua Tai Securities analysts believe that the recent surge in the South Korean stock market was ignited by AI demand. A few technology giants such as Samsung Electronics and SK Hailishi have a significant weight in the KOSPI index. The surge in AI demand is driving the explosion of storage chips, with better-than-expected performance in the first quarter of 2026 by Samsung Electronics and SK Hailishi, which are important factors driving the sharp rise of the South Korean stock market. Institutional Views Zhongxin Securities pointed out that due to factors such as downward revision of earnings expectations, disturbance caused by Middle East conflicts, and funds being attracted to overseas AI infrastructure momentum trading, the valuation of Hong Kong stocks has returned to a fairly reasonable level. Looking ahead to the second half of the year, a "constructive strategic stability" in Sino-U.S. relations will boost investor sentiment in Hong Kong stocks; under the backdrop of the first year of the "Twelfth Five-Year Plan", the technology sector is expected to see the realization of Token economy scaling and the acceleration of humanoid robot industrialization; the stabilization of residential property and the "return" of equity market wealth effect may drive domestic consumption recovery, creating a positive cycle. Zhongxin Securities stated that after the first-quarter reports, the negative factors in the fundamental situation of Hong Kong stocks have been largely priced in. After four significant outflows starting from the fourth quarter of 2025, foreign funds have shown signs of flowing back from mid-May 2026; and after external disturbances, there is also the possibility of an accelerated allocation of Hong Kong stocks by Southbound funds. The overall optimism for Hong Kong stocks is maintained in the second half of the year, but it is also pointed out that there may be disturbance in liquidity due to the peak of unlocking in the third quarter.