HK

Introduction: The Thursday When a Chinese Chipmaker Made the Whole World Talk

Thursday, Hong Kong Stock Exchange. Shares of Shanghai Iluvatar CoreX SemiCon Co surged 7.1% to HK$600, attracting the attention of investors around the world. This was not a random spike — it was the result of a large-scale share placement that raised about HK$7.07 billion ($902 million). The company placed 14.9 million shares at HK$476 each, at a discount of around 15% to the previous session’s closing price.

What is behind this growth? The company had been in talks with advisers about a possible placement, and the six-month lock-up period following its IPO had expired only a few days earlier. Investor enthusiasm was supported by commercial momentum: since Nvidia’s most powerful chips are unavailable due to U.S. export restrictions, Chinese buyers are actively seeking domestic alternatives, and capital is beginning to flow into this segment.

Another positive factor was reports that Iluvatar is in talks to supply ByteDance with at least 50,000 AI inference chips, which would make it a key supplier in ByteDance’s hardware ecosystem.

On the broader market, the backdrop for Hong Kong-listed AI and semiconductor stocks remains favorable. Driven by a wave of artificial intelligence catalysts from internet giants and capital rotation, the Hang Seng Tech Index staged a strong rally, gaining nearly 5% on July 8, 2025, and closing at 4,731 points.

Analyst sentiment toward the stock remains firmly positive: the average 12-month target price stands at HK$762.15, while all six analysts covering the stock recommend buying it — resulting in an overall rating equivalent to “Strong Buy.”

Let’s take a closer look at why Shanghai Iluvatar CoreX has become a focus of investor attention, what factors are supporting the growth of its shares, and whether the company has further potential to strengthen its...

Monday: A Day of Red Numbers and Green Analysts

Monday was not kind to everyone on the Hong Kong Stock Exchange. Shares of Aluminum Corporation of China (Chalco) — China’s largest aluminum producer, a state-owned giant that carries much of the country’s non-ferrous metals industry on its shoulders — fell 8.8%. The stock dropped to HK$9.42 per share. At one point, losses reached 10%, before recovering slightly to around 8.8% by midday.

What happened? Why did a company that just a month ago seemed to embody China’s industrial strength suddenly become the target of a major selloff?

The answer: Goldman Sachs.

The U.S. investment bank, one of the most influential financial institutions in the world, downgraded Chalco from “Neutral” to “Sell” and cut its price target from HK$12.50 to HK$7.50. In other words, Goldman believes the stock could still fall another 20% from current levels.

A downgrade from Goldman is more than just an opinion. It is a signal followed by hundreds of institutional funds. When Goldman says “sell,” many investors sell first and ask questions later. That is exactly what happened on Monday.

But Goldman’s call was only part of the story. Chalco also faces several fundamental challenges: rising aluminum supply in China and globally, declining metal prices, a stronger U.S. dollar weighing on commodities, and evidence that investors have been pulling money out of the stock through the Stock Connect program.

Let’s break it down.

Goldman Sachs: What They Said and Why

Goldman Sachs is not just another brokerage. Alongside Morgan Stanley and JPMorgan, it is one of America’s largest investment banks. Its analysts rarely make dramatic rating changes. Typically, recommendations move gradually from “Buy” to “Hold” to “Sell.” Cutting a price target by 40% in a single move is unusual.

So what prompted Goldman to...

Hong Kong’s stock market witnessed a classic example on Thursday of how fear and uncertainty can outweigh fundamentals. Shares of Meituan, the Chinese food delivery giant, plunged 6.1%, falling to HK$72.95 — the company’s lowest level since February 2024. A business once considered one of the pillars of China’s tech sector lost billions of dollars in market capitalization in a single trading session. And all because of rumors. Rumors that were officially denied, yet still caused damage comparable to a real corporate crisis.

Anatomy of the Panic: What Happened

On Thursday morning, reports began circulating across Chinese social media and among market participants claiming that Meituan was planning massive layoffs. According to the rumors, up to 50% of employees in certain product-related positions could be cut. For a company aggressively expanding its grocery delivery operations and competing with giants like JD.com and Alibaba, the news hit the market like a bolt from the blue.

Meituan employees quickly denied the reports. They called the information false and pointed out that the company’s 2026 campus recruitment program was continuing as planned. Moreover, the company is still actively hiring specialists in technology, product development, and operations. In theory, the denial should have calmed investors. It did not. The stock continued to slide.

Why? Because in today’s atmosphere surrounding China’s tech sector, investors prefer to sell first and ask questions later. Over the past few years, they have repeatedly been burned by sudden regulatory crackdowns, abrupt strategy shifts, and real layoffs that initially appeared as “just rumors.” The market has developed a defensive reflex: if there are reports of trouble, dump the stock immediately before it’s too late.

Competition Is Suffocating the Industry

Still, it would be unfair to blame Meituan’s decline entirely on rumors. The rumors were merely the spark; the powder keg...