<Economic Information Daily, 25th exclusive> The Xi-Biden meeting had a positive atmosphere, but no unexpected breakthroughs were seen in the bilateral trade negotiation content, disappointing markets. Coupled with U.S. 30-year Treasury yield hitting a new high over twenty years, concerns about global financial risks reigniting emerged. A-shares were closed for the Mid-Autumn Festival holiday today. Previously, northbound funds had consecutively flowed into Hong Kong for 14 days, providing crucial support. With the northbound flow halted today, Hong Kong's market resilience sharply declined. The Hang Seng Index's morning decline once widened to over 480 points, hitting a low of 24,275—the lowest since mid-July this year. However, in the afternoon, after digesting negative news, market support emerged as uncertainties were removed. Tech stocks rebounded from lows, and the Hang Seng Index's full-day decline narrowed to 251 points, or 1%, closing at 24,510. The Hang Seng China Enterprises Index closed at 8,165, down 100 points or 1.2%. The Hang Seng Tech Index closed at 4,311, down 49 points or 1.1%. With the absence of northbound funds, trading activity became even quieter. Total main board turnover for the day was over HK$102.2 billion, the lowest trading volume this year (excluding half-day trading days).
The week's biggest focus was the Xi-Biden meeting. China and the U.S. commerce departments initiated trade consultations. Early in the week, news emerged that the U.S. planned to relax restrictions on U.S. pharmaceutical companies investing in China, pushing the Hang Seng Index above 25,000 on Monday (21st). On Tuesday (22nd), AI agent opportunities sparked a rally in tech stocks. However, market gains were limited by multiple major moving averages. By Wednesday (23rd), U.S. reports indicated that no Chinese business delegation would accompany the trip to the U.S., coupled with concerns over domestic regulation of large model companies and elevated U.S. bond yields, the Hang Seng Index retreated below 25,000, forming a three-day consecutive decline yesterday and today, erasing previous gains. Overall, the Hang Seng Index fell 240 points or 0.97% for the week, marking the third consecutive week of decline.
The four major mainland banks formed a market support force yesterday, but fell today following the suspension of northbound funds: ICBC (01398) dropped 1.89% to HK$7.515, CCB (00939) declined 1.5% to HK$9.535, ABC (01288) fell 1.44% to HK$6.515, and BOC (03988) softened 0.99% to HK$5.98.
Major tech stocks plunged sharply in early trading but narrowed losses in the afternoon: Xiaomi (01810) dropped 2.56% to HK$25.9, Alibaba (09988) fell 1.45% to HK$108.4, Kuaishou (01024) declined 1.57% to HK$30.02, Baidu (09888) fell 1.16% to HK$85.3, Meituan (03690) dropped 0.83% to HK$71.65, and Tencent (00700) softened 0.41% to HK$436.6.
Chip and AI-related stocks also recovered some losses in the afternoon: TianShu AI (09903) fell 3.53% to HK$123.1, SMIC (00981) softened 0.71% to HK$63.35, Zhipu (02513) declined 0.78% to HK$633.5, MiniMax (00100) fell 1.36% to HK$275.2, and Kingboard Laminate (01888) rose 0.19% to HK$52.25. On the news front, Trump stated that China and the U.S. should maintain dialogue and strengthen cooperation on AI, while Xi Jinping said that while there is competition in artificial intelligence, there can also be cooperation.
Biotech stocks showed slight rebound momentum, with individual stocks outperforming the broader market: Genscript (01548) surged 8.05% to HK$42.94, WuXi Biologics (02269) rose 2.12% to HK$53, and WuXi AppTec (02359) gained 2.24% to HK$209.6.
With high probability of U.S. rate hikes and Beijing taking the lead in implementing a ready-to-move-in housing priority sales policy, mainland property stocks were under pressure. Vanke (02202) plunged 4.12% to HK$2.445, Longfor (00960) dropped 2.29% to HK$5.33, China Resources Land (01109) fell 1.45% to HK$28.64, and China Overseas (00688) softened 1.27% to HK$12.42.
On the financial front, HSBC (00005) rose 0.45% to HK$157.6, BOCHK (02388) declined 0.2% to HK$51.15, and AIA (01299) dropped 2.7% to HK$73.75.
Lenovo Group (00992) rose 3.16% against the market trend to HK$37.16; Weichai Power (02338) remained under the 'blue-chip curse', falling 4.78% to HK$27.94, with five consecutive days of decline and cumulative losses exceeding 10%.
The most actively traded stocks in the Hang Seng Index, China Enterprises Index, and Tech Index were Tencent, Alibaba, and Xiaomi respectively. (ey)
The week's biggest focus was the Xi-Biden meeting. China and the U.S. commerce departments initiated trade consultations. Early in the week, news emerged that the U.S. planned to relax restrictions on U.S. pharmaceutical companies investing in China, pushing the Hang Seng Index above 25,000 on Monday (21st). On Tuesday (22nd), AI agent opportunities sparked a rally in tech stocks. However, market gains were limited by multiple major moving averages. By Wednesday (23rd), U.S. reports indicated that no Chinese business delegation would accompany the trip to the U.S., coupled with concerns over domestic regulation of large model companies and elevated U.S. bond yields, the Hang Seng Index retreated below 25,000, forming a three-day consecutive decline yesterday and today, erasing previous gains. Overall, the Hang Seng Index fell 240 points or 0.97% for the week, marking the third consecutive week of decline.
The four major mainland banks formed a market support force yesterday, but fell today following the suspension of northbound funds: ICBC (01398) dropped 1.89% to HK$7.515, CCB (00939) declined 1.5% to HK$9.535, ABC (01288) fell 1.44% to HK$6.515, and BOC (03988) softened 0.99% to HK$5.98.
Major tech stocks plunged sharply in early trading but narrowed losses in the afternoon: Xiaomi (01810) dropped 2.56% to HK$25.9, Alibaba (09988) fell 1.45% to HK$108.4, Kuaishou (01024) declined 1.57% to HK$30.02, Baidu (09888) fell 1.16% to HK$85.3, Meituan (03690) dropped 0.83% to HK$71.65, and Tencent (00700) softened 0.41% to HK$436.6.
Chip and AI-related stocks also recovered some losses in the afternoon: TianShu AI (09903) fell 3.53% to HK$123.1, SMIC (00981) softened 0.71% to HK$63.35, Zhipu (02513) declined 0.78% to HK$633.5, MiniMax (00100) fell 1.36% to HK$275.2, and Kingboard Laminate (01888) rose 0.19% to HK$52.25. On the news front, Trump stated that China and the U.S. should maintain dialogue and strengthen cooperation on AI, while Xi Jinping said that while there is competition in artificial intelligence, there can also be cooperation.
Biotech stocks showed slight rebound momentum, with individual stocks outperforming the broader market: Genscript (01548) surged 8.05% to HK$42.94, WuXi Biologics (02269) rose 2.12% to HK$53, and WuXi AppTec (02359) gained 2.24% to HK$209.6.
With high probability of U.S. rate hikes and Beijing taking the lead in implementing a ready-to-move-in housing priority sales policy, mainland property stocks were under pressure. Vanke (02202) plunged 4.12% to HK$2.445, Longfor (00960) dropped 2.29% to HK$5.33, China Resources Land (01109) fell 1.45% to HK$28.64, and China Overseas (00688) softened 1.27% to HK$12.42.
On the financial front, HSBC (00005) rose 0.45% to HK$157.6, BOCHK (02388) declined 0.2% to HK$51.15, and AIA (01299) dropped 2.7% to HK$73.75.
Lenovo Group (00992) rose 3.16% against the market trend to HK$37.16; Weichai Power (02338) remained under the 'blue-chip curse', falling 4.78% to HK$27.94, with five consecutive days of decline and cumulative losses exceeding 10%.
The most actively traded stocks in the Hang Seng Index, China Enterprises Index, and Tech Index were Tencent, Alibaba, and Xiaomi respectively. (ey)
