Hong Kong-listed Huahong Grace Semiconductor (01347.HK) weakened after its earnings release, falling nearly 10% in early trading. The company expects its gross margin for the third quarter to be between 16% and 18%, compared to market expectations of 16.6%. It projects Q3 2026 revenue to be between US$770 million and US$780 million, with a gross margin of approximately 16% to 18%.

Hong Kong-listed CK Hutchison Holdings (00001.HK) shares continued to decline after the earnings release, falling more than 5% in early trading. The company's basic net profit for the first half of the year was HK$12.592 billion, up 6% year-on-year.

GDS Holdings Limited (09698.HK) opened 9.28% higher after reporting a net profit of RMB 838 million in Q2, turning a loss into a profit year-on-year.

The Hang Seng China Enterprises Index (HSI) opened down 177.36 points, or 0.7%, at 25219.15 on Friday, August 14th; the Hang Seng Tech Index opened down 28.63 points, or 0.6%, at 4763.76 on Friday, August 14th; the Hang Seng China Enterprises Index opened down 50.02 points, or 0.59%, at 8376.47 on Friday, August 14th; and the Hang Seng Red Chip Index opened up 2.43 points, or 0.06%, at 4091.63 on Friday, August 14th.

Experts say that as attacks escalate, Saudi Arabia has begun to take a more proactive approach to maintaining its security—both in Yemen and throughout the region. Analysts believe that the prospect of the Houthi rebels eventually blocking the Bab el-Mandeb Strait is prompting Saudi Arabia to adjust its strategy. This strait connects the Red Sea and the Gulf of Aden and is a key alternative to the Strait of Hormuz. Previously, Saudi Arabia could bypass the Strait of Hormuz via the East-West Pipeline, but if the Bab el-Mandeb Strait is blocked, its Red Sea shipping routes will be directly threatened. Last month, Saudi Arabia announced the formation of an international coalition to protect Red Sea shipping, with 13 countries already participating; it also deepened cooperation with Pakistan and Turkey through new defense agreements and strengthened coordination with the United States. The Saudi Defense Minister recently met with US Vice President Vance, and reports indicate that the Crown Prince has received US support for potential military action against the Houthis. In the Yemeni battlefield, Saudi Arabia's strategic shift is even more pronounced. At the end of last year, Saudi Arabia intervened in the UAE-backed Southern Transitional Council, fostering a more unified front among anti-Houthi factions around the Yemeni government. Professor Mabang of Lancaster University in the UK points out that after years of efforts to de-escalate the situation and reach a compromise with the Houthis, Saudi Arabia appears to have abandoned the path of reconciliation with the group. The conflict in the Strait of Hormuz has increased the importance of alternative shipping routes in the Red Sea, a matter of particular concern to Riyadh. However, Mabang states that Saudi Arabia's current goal is not to completely defeat the Houthis and retake Sana'a, but rather to drive them away from the coastline.

Pony.ai-W (02026.HK): Uber (UBER.N) expands its partnership, planning to deploy more than 2,000 Robotaxi vehicles in 5 European cities.