Chinese and Hong Kong stock markets showed mixed but generally positive performance in early August 2025. The Hang Seng Index and Hang Seng Tech Index in Hong Kong turned positive, with the tech index gaining over 1.5% on August 4 and continuing to show modest gains in subsequent days. Key semiconductor stocks like Hua Hong Semiconductor and SMIC rose by over 6% and 3%, respectively. Mainland China markets also advanced, with the Shanghai Composite Index closing up between 0.45% and 0.96% on different days, Shenzhen Component Index and ChiNext Index showing gains as well. Southbound net buying via the Stock Connect reached HKD 20 billion, the highest since April 9. Trading turnover on the Shanghai and Shenzhen exchanges exceeded 1 trillion yuan for 50 consecutive trading days and surpassed 1.5 trillion yuan for three consecutive days by August 7. The CSI Convertible Bond Index reached its highest level since June 2015. However, some sectors showed weakness, with the CSI Rare Earth Industry Index and CSI Steel Index falling over 2% on August 7. Meanwhile, China's most active lithium carbonate futures jumped over 6%, coking coal futures rallied over 4%, and coke futures increased over 3%, reflecting commodity market strength. Margin transactions in China reached the highest outstanding balance since May 2015, indicating increased market activity amid a backdrop of strong export data supporting industrial commodity demand.