<Economic Daily News, 24th exclusive> Chinese President Xi Jinping has arrived in the United States and received high-level hospitality from U.S. President Trump, with markets awaiting outcomes of the Xi-Trump meeting. The market's half-day turnover reached only HK$82.2 billion, and full-day turnover is likely to hit a new low in recent months. Amid weak trading volume and turbulence in the U.S. bond market, the U.S. September manufacturing PMI surged to 57, far exceeding expectations, increasing market expectations for a second consecutive month of U.S. interest rate hikes. This dragged down the Hang Seng Index, which fell below its 10-day moving average (around 24,812) and continued to decline, dropping 129 points or 0.5% in the morning session to close at 24,704. The Hang Seng China Enterprises Index fell 38 points or 0.5% to 8,235. The Hang Seng Tech Index dropped 48 points or 1.1% to 4,330.
CATL (03750) was again affected by concerns over "de-CATLization" and fell below the HK$500 level this morning after several days, plunging 4.16% in the morning session to HK$490.2.
Interest rate markets show the probability of the Fed raising rates by 25 basis points in October has surged from 55.4% a day earlier to over 70%. The yield on the U.S. 10-year Treasury once again rose above the 5% level, peaking at 5.139%, while the U.S. 30-year fixed mortgage rate increased by 15 basis points to 7.12%, a more than two-year high. Tech and internet stocks broadly declined, with Tencent (00700) down 1.54% at HK$434.2, Baidu (09888) down 2.65% at HK$86.2, Meituan (03690) down 0.96% at HK$72.15, JD.com (09618) down 0.47% at HK$105.6, and Kuaishou (01024) down 0.65% at HK$30.58.
Morgan Stanley expects Alibaba (09988) to achieve a cloud revenue capacity of US$240 billion, supported by rapid monetization of Tongyi Qianwen and increased penetration of Pingtouge, maintaining its overweight rating and US$180 target price on Alibaba's U.S.-listed shares, and naming it a top pick. Alibaba's Hong Kong shares rose 0.27% in the morning session to HK$110.1.
Xiaomi (01810) held its autumn launch event, unveiling the Xiaomi 18 Pro series smartphones, starting at RMB 5,999, with actual prices after trade-in subsidies starting at RMB 5,499; the transparent special edition phones start at RMB 9,999. The Xiaomi Pro Max series starts at RMB 6,999, with the Pro Max transparent special edition (16GB+1TB) priced at RMB 10,999. Xiaomi's share price softened by 0.08% to HK$26.16.
Rising expectations for consecutive Fed rate hikes weighed on mining stocks, with CMOC (03993) down 4.66% at HK$14.93 and Zijin (02899) down 3.1% at HK$32.54. Rising oil prices boosted oil stocks, with PetroChina (00857) up 2.35% at HK$9.57 and CNOOC (00883) up 1.54% at HK$23.7.
Individual mainland banking stocks rose to support the market, with Agricultural Bank of China (01288) up 1.62% at HK$6.6, ICBC (01398) up 1.19% at HK$7.63, and Bank of China (03988) up 0.75% at HK$6.045.
All constituents of the biotech index declined, with DualityBio (09606) plunging 6.79% to HK$200.4, Ascentage Pharma (06855) down 6.02% at HK$29.06, InnoCare Pharma (09969) down 4.76% at HK$15, Zai Lab (09688) down 4.46% at HK$20.12, 3SBio (01530) down 4.17% at HK$16.3, and Akeso (09926) down 3.74% at HK$93.85.
New Oriental (09901) rose 1.8% to HK$44.12.
The top three most actively traded stocks in the Hang Seng Index were Tencent, Alibaba, and Lenovo Group. The top three most actively traded stocks in the Tech Index were Tencent, Zhipu (02513), and Alibaba; Zhipu closed at HK$622.5, down 4.2%. (ey)
CATL (03750) was again affected by concerns over "de-CATLization" and fell below the HK$500 level this morning after several days, plunging 4.16% in the morning session to HK$490.2.
Interest rate markets show the probability of the Fed raising rates by 25 basis points in October has surged from 55.4% a day earlier to over 70%. The yield on the U.S. 10-year Treasury once again rose above the 5% level, peaking at 5.139%, while the U.S. 30-year fixed mortgage rate increased by 15 basis points to 7.12%, a more than two-year high. Tech and internet stocks broadly declined, with Tencent (00700) down 1.54% at HK$434.2, Baidu (09888) down 2.65% at HK$86.2, Meituan (03690) down 0.96% at HK$72.15, JD.com (09618) down 0.47% at HK$105.6, and Kuaishou (01024) down 0.65% at HK$30.58.
Morgan Stanley expects Alibaba (09988) to achieve a cloud revenue capacity of US$240 billion, supported by rapid monetization of Tongyi Qianwen and increased penetration of Pingtouge, maintaining its overweight rating and US$180 target price on Alibaba's U.S.-listed shares, and naming it a top pick. Alibaba's Hong Kong shares rose 0.27% in the morning session to HK$110.1.
Xiaomi (01810) held its autumn launch event, unveiling the Xiaomi 18 Pro series smartphones, starting at RMB 5,999, with actual prices after trade-in subsidies starting at RMB 5,499; the transparent special edition phones start at RMB 9,999. The Xiaomi Pro Max series starts at RMB 6,999, with the Pro Max transparent special edition (16GB+1TB) priced at RMB 10,999. Xiaomi's share price softened by 0.08% to HK$26.16.
Rising expectations for consecutive Fed rate hikes weighed on mining stocks, with CMOC (03993) down 4.66% at HK$14.93 and Zijin (02899) down 3.1% at HK$32.54. Rising oil prices boosted oil stocks, with PetroChina (00857) up 2.35% at HK$9.57 and CNOOC (00883) up 1.54% at HK$23.7.
Individual mainland banking stocks rose to support the market, with Agricultural Bank of China (01288) up 1.62% at HK$6.6, ICBC (01398) up 1.19% at HK$7.63, and Bank of China (03988) up 0.75% at HK$6.045.
All constituents of the biotech index declined, with DualityBio (09606) plunging 6.79% to HK$200.4, Ascentage Pharma (06855) down 6.02% at HK$29.06, InnoCare Pharma (09969) down 4.76% at HK$15, Zai Lab (09688) down 4.46% at HK$20.12, 3SBio (01530) down 4.17% at HK$16.3, and Akeso (09926) down 3.74% at HK$93.85.
New Oriental (09901) rose 1.8% to HK$44.12.
The top three most actively traded stocks in the Hang Seng Index were Tencent, Alibaba, and Lenovo Group. The top three most actively traded stocks in the Tech Index were Tencent, Zhipu (02513), and Alibaba; Zhipu closed at HK$622.5, down 4.2%. (ey)
