Hong Kong's stock market declined for a third consecutive day, with the Hang Seng Index falling below the 25,000-point mark today.
South Korean equities experienced a "Black Friday," leading to significant drops in related ETFs; meanwhile, the robotics sector bucked the downtrend and rose, driven by multiple recent industry catalysts.
At the close, the Hang Seng Index was down 1.15% at 24,961.95 points, with a full-day turnover of HK$342.805 billion.
The Hang Seng Tech Index fell 1.75% to 4,888.39 points.
Among major Hong Kong-listed ETFs by size, Tracker Fund (02800) closed down 1.02% at HK$25.28.
CSOP 2X Long SK Hynix Daily (07709) tumbled 19.32% to HK$106.9, while CSOP 2X Long Samsung Daily (07747) dropped 13.45% to HK$185.9.
Sector Performance Overview
1. South Korean stocks faced a "Black Friday," causing sharp declines in related ETFs.
By the close, CSOP 2X Long SK Hynix Daily (07709) had plunged 19.32% to HK$106.9.
CSOP 2X Long Samsung Daily (07747) fell 13.45% to HK$185.9.
TR Korea ETF (02848) was down 7.24% at HK$1,888.5, and CSOP HK-Korea Tech ETF (03431) decreased by 4.46% to HK$11.14.
As of June 5th, influenced by Broadcom's disappointing earnings guidance and a research report from SemiAnalysis founder predicting a significant memory configuration reduction for NVIDIA's Rubin platform, shares of Samsung Electronics and SK Hynix both plummeted over 7% in early trading.
The South Korean KOSPI index plunged as much as 6.4% intraday, triggering a circuit breaker mechanism.
The previous day, South Korean financial authorities issued strong signals to stabilize the market.
Finance Minister Choo Kyung-ho stated that immediate measures would be taken if necessary to address excessive volatility in the foreign exchange market, and that risks in the stock and bond markets were being monitored, expressing concern over leveraged stock trading to prevent "herd behavior" from amplifying market swings.
According to data from the Korea Exchange, driven by AI-fueled chip demand, Samsung Electronics and SK Hynix account for 54% of the weighting in the KOSPI index and approximately half of the index's average daily trading volume in May.
Nearly three-quarters of the benchmark index's gains this year have come from these two companies.
Leveraged single-stock ETFs linked to Samsung and SK Hynix have exacerbated concerns.
Exchange data shows that in the first five trading days after their listing on May 27th, the four most active single-stock ETFs accounted for 21% of South Korea's total ETF trading volume.
Robotics Sector Defies Market Downturn
2. The robotics sector rose against the broader market trend, supported by multiple recent industry catalysts.
At the close, Invesco Robotics ETF (159559) gained 5.47% to 1.465 yuan.
Fullgoal Robotics ETF (159272) advanced 5.38% to 0.979 yuan, and E Fund Robotics ETF (159530) increased by 5.36% to 1.632 yuan.
BYD COMPANY (01211) has officially entered the humanoid robotics arena.
According to market media reports on June 5th, BYD's Executive Vice President Stella Li recently confirmed for the first time that the company is steadily advancing its self-developed industrial humanoid robot project, codenamed "Yao Shun Yu," marking the world's largest new energy vehicle manufacturer's official entry into the embodied AI sector as a second growth curve.
The project was initiated in 2022 by the 15th Division with technical support from the Central Research Institute, and currently has a core R&D team exceeding 4,000 people.
As of May 2026, the prototype has been iterated to its seventh generation, with core component production lines also being put into operation.
In other news, Unitree Robotics successfully passed its IPO review for Shanghai's STAR Market, taking only 73 days from application acceptance to approval, setting a new record for the fastest review on the board.
Oriental Securities noted that Unitree's successful review enhances the certainty of the humanoid robotics industry chain.
Additionally, NVIDIA CEO Jensen Huang announced a collaboration with Unitree to launch a new-generation humanoid robot reference design named "H2 Plus."
Unitree's Marketing Director Huang Jiawei revealed in a media interview that the product is scheduled for official launch in the second half of this year, with its core feature being the integration of NVIDIA's high-performance computing platform, aimed at creating a more powerful "intelligent brain" for humanoid robots.
Kaiyuan Securities believes the robotics industry is approaching its "1-to-10" moment—with production lines from companies like Tesla Motors, Unitree, and Zhiyuan coming online in 2026, the industry will enter its first phase of ten-thousand-unit scale manufacturing, and production is expected to potentially reach the million-unit level by 2027.
Institutional Perspectives
China International Capital Corporation (CICC) maintains a view of neutral consolidation for Hong Kong stock indices, noting that given the tight liquidity environment and prolonged weakness, subsequent marginal changes (such as a decline in US Treasury yields or catalysts from major internet companies' AI investments) could lead to some valuation recovery in growth sectors like the Hang Seng Tech Index from their current low levels.
From an allocation perspective, the extreme market divergence directly reflects the divergence in credit cycles.
If the technology sector stands out alone, domestic demand remains relatively weak, and capital struggles to rotate, with more behavior focused on short-term avoidance of high valuations and crowded trades.
In terms of allocation, CICC recommends closely following directions where credit can expand: first, technology, as the overall AI industry has not reached a state of widespread bubble, though there is some stage-specific overvaluation; second, cyclical sectors, though this is a more contrarian view, as the deepening of AI investment, falling US Treasury yields, and incremental overseas fiscal policy are catalysts for credit expansion in cyclicals; third, broad external demand sectors, though these require more support from a recovery in global fundamentals.
Conversely, if directions for credit expansion become unsustainable and domestic demand cannot take over, then dividend and stable growth sectors may once again attract investors.
ETF Developments
1. ICBC N Dividend Low Vol 100 ETF (560720) debuted today, closing up 0.1% at 0.998 yuan with a turnover of 702.696 million yuan.
The fund tracks the CSI Dividend Low Volatility 100 Index, focusing on the A-share high-dividend, low-volatility sector and selecting 100 listed companies with consistent high dividends and low volatility, belonging to the high-dividend value allocation space.
2. Guotai Food ETF (159033) also listed for the first time today, closing down 0.51% at 0.979 yuan with a turnover of 547.644 million yuan.
The fund tracks the SZSE Food Industry Index, covering the entire industry chain from seeds, fertilizers, and agricultural machinery to grain planting and oil processing, corresponding to the food security and agriculture, forestry, animal husbandry, and fishery sectors.
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