Hong Kong stocks steadied by midday on Wednesday after opening 124 points lower, with selective earnings-driven buying offsetting weakness from softer U.S. equities and the Middle East standoff. The Hang Seng Index rose 62 points, or 0.2%, to 25,533 at the close of the morning session, while the Hang Seng Tech Index fell 0.8% to 4,700 and the Hang Seng China Enterprises Index gained 0.6% to 8,505. Xiaomi led the rebound, with its shares surging 7% to HK$28 after the company reported second-quarter adjusted profit of CNY 6.22 billion and revenue of CNY 108.92 billion. Profit fell 42.6% year over year and missed expectations, but revenue was slightly ahead of estimates. Group President Lu Weibing said memory chip price increases should moderate, even as prices remain on an upward path, a comment the market took positively. Short-selling in Xiaomi was heavy, reaching HK$1.75 billion and 37.6% of turnover. The broader picture was more mixed. Meituan rose 3.1% and Tencent added 1.1%, but Alibaba slipped 0.9% and drew HK$3.37 billion in short-selling, making it one of the morning's most heavily shorted names. Baidu was the weakest major index constituent, plunging 11.8% after reporting lower second-quarter revenue and profit despite management saying AI cloud (artificial intelligence computing services) should remain strong or improve in the second half. China Unicom also tumbled 7.8% after first-half profit fell 34.6% and the company declared no interim dividend. The session underscored how sharply investors are reacting to corporate results during Hong Kong's busy earnings season. Analysts and market participants said stock moves are being driven less by the index and more by company-specific performance, with profit declines and dividend omissions punished quickly. By contrast, Xiaomi's guidance on chip cost pressures helped reverse sentiment even after a steep profit drop. Near-term direction is expected to hinge on incoming earnings and on whether the external sell-off in chip shares stabilizes.