HSI opens flat at 25,150 as chip stocks, AI names advance

The Hang Seng Index opened little changed at 25,150, up 7 points, as gains in chip and AI stocks offset a record EU fine on Alibaba's cross-border marketplace.

"We disagree with today's decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made," AliExpress said in an email, after the European Commission imposed a EUR 550 million penalty for failing to curb illegal and counterfeit products under the Digital Services Act.

Alibaba's Hong Kong-listed shares opened 2.65% higher at HKD 119.9, suggesting the fine was anticipated by the market. The Hang Seng Tech Index edged up 3 points to 4,755, while the Hang Seng China Enterprises Index opened flat at 8,381. Among other heavyweights, Tencent Holdings (0700.HK) opened at HKD 478.2, up 0.08%, while Meituan (3690.HK) fell 1.62% to HKD 84.9.

Semiconductor stocks led the advance. Lenovo Group (0992.HK) opened 3.83% higher at HKD 22.24, Semiconductor Manufacturing International Corp (0981.HK) rose 3.01% to HKD 71.85, and Hua Hong Grace (1347.HK) gained 3.99% to HKD 148.6. Montage Technology (6809.HK) opened 4.17% higher and GigaDevice (3986.HK) added 3.47%. AI concept stocks also rebounded, with Z.AI (2513.HK) opening 4.44% higher and MiniMax-W (0100.HK) rising 5.13%.

CK Hutchison Holdings (0001.HK) opened 0.99% higher at HKD 71.2 after responding to market speculation that the listing of AS Watson in London could be delayed until next year, reiterating that its board has not yet made any decision regarding the IPO or its timing.

The EU fine, the largest imposed under the DSA, surpasses earlier penalties of EUR 120 million on X and EUR 200 million on Temu. AliExpress has until Oct. 20 to submit remedial measures, with the commission set to assess compliance in December. The stock's positive open suggests investors view the penalty as manageable relative to Alibaba's broader business, though it adds regulatory pressure on the company's international expansion.

This article is for informational purposes only and does not constitute investment advice.