Economic Information Daily, October 2: Long-term U.S. bond yields surged sharply. Although another Federal Reserve official adopted a dovish tone, increasing the probability of no rate hike this month to 75%, Hong Kong stocks resumed trading today without support from northbound funds. Financial and tech internet stocks, two major heavyweight sectors, plunged over 500 points at the opening. Within minutes, the index broke below the 24,000 level and failed to recover throughout the afternoon. Only seven blue-chip stocks ended higher. The Hang Seng Index hit an intraday low of 23,865, the lowest since July 8, closing at 23,972, down 640 points or 2.6%. The Hang Seng China Enterprises Index closed at 8,030, down 189 points or 2.3%. The Hang Seng Tech Index closed at 4,157, down 95 points or 2.3%. Mainland's National Day holiday led to the temporary suspension of Stock Connect trading, with main board turnover falling to HK$145.8 billion.
Reviewing the week's performance, Hong Kong stocks were sandwiched between the Mid-Autumn Festival and National Day holidays, with northbound trading closed at both the beginning and end of the week. Coupled with anticipation of several key U.S. economic data releases, market sentiment was lackluster, with average daily turnover of only about HK$170 billion. Low trading volumes combined with a 'perfect storm' in U.S. bonds easily triggered sharp market volatility. The first three trading days were stable, and northbound funds even bought HK$6.9 billion worth of biotech stocks on Wednesday (30th). However, during the National Day holiday, the yield on the U.S. 10-year Treasury briefly broke above 5.3%, prompting major brokerages to issue de-leveraging warnings. Even with urgent dovish comments from Fed officials, market panic could not be eased. Hong Kong stocks plunged 640 points today, falling 537 points or 2.19% for the week, marking the fourth consecutive weekly decline.
Rising U.S. bond yields severely pressured tech and internet stocks. Xiaomi (01810) fell 3.96% to HK$24.24, Baidu (09888) dropped 3.03% to HK$83.2, Tencent (00700) declined 2.27% to HK$421.2, Meituan (03690) fell 2.09% to HK$70.2, Alibaba (09988) dropped 2.06% to HK$104.4, JD.com (09618) declined 1.34% to HK$102.9; financial stocks also fluctuated sharply, AIA (01299) plunged 5.98% to HK$69.2, HSBC (00005) fell 5.38% to HK$149.5, Standard Chartered (02888) dropped 5.97% to HK$229.8, Bank of China (Hong Kong) (02388) declined 2.97% to HK$50.7.
Northbound-favored biopharmaceutical stocks fell across the board. InnoCare Pharma (09969) dropped 7.84% to HK$13.63, BeiGene (06160) fell 5.86% to HK$212.2, Ascentage Pharma (06855) declined 5.01% to HK$29.2, Zai Lab (09688) dropped 4.8% to HK$19.65, United Laboratories (03933) fell 4.39% to HK$7.625, 3SBio (01530) declined 4.35% to HK$15.85, Insilico Medicine (03696) dropped 4.16% to HK$57.6.
Mainland automakers released September sales figures, with mixed stock price movements. Li Auto (02015) plunged 5.37% to HK$42.62, BYD (01211) fell 2.25% to HK$73.9, XPeng (09868) dropped 3.96% to HK$36.36, Geely Automobile (00175) rose 1.31% to HK$14.74, Leapmotor (09863) gained 0.88% to HK$34.52.
Macau's Gaming Inspection and Coordination Bureau reported that September's gross gaming revenue was MOP 18.06 billion, down 1.2% year-on-year, worse than the expected 2.2% increase, marking the fourth consecutive monthly decline. Galaxy Entertainment (00027) fell 4.17% to HK$30.3, Sands China (01928) dropped 3.97% to HK$11.38.
New World Development (00017) announced its annual results and simultaneously revealed that it has entered into an early termination sublease agreement with the Airport Authority, returning the entire 11 SKIES project to the Airport Authority on April 1 next year and paying a total early termination fee of HK$2.3 billion, resulting in a net loss of approximately HK$18.3 billion, which has already been reflected in the annual results ended June 30 this year. New World Development rose initially before falling, ending the day down 3.8% at HK$5.82.
Weichai Power (02338) rose 1.39% to HK$29.12, the best-performing blue-chip stock.
The three most actively traded stocks in the Hang Seng Index were Tencent, Alibaba, and HSBC; the top three in the China Enterprises Index and Tech Index were Tencent, Alibaba, and Xiaomi. (ey)
Reviewing the week's performance, Hong Kong stocks were sandwiched between the Mid-Autumn Festival and National Day holidays, with northbound trading closed at both the beginning and end of the week. Coupled with anticipation of several key U.S. economic data releases, market sentiment was lackluster, with average daily turnover of only about HK$170 billion. Low trading volumes combined with a 'perfect storm' in U.S. bonds easily triggered sharp market volatility. The first three trading days were stable, and northbound funds even bought HK$6.9 billion worth of biotech stocks on Wednesday (30th). However, during the National Day holiday, the yield on the U.S. 10-year Treasury briefly broke above 5.3%, prompting major brokerages to issue de-leveraging warnings. Even with urgent dovish comments from Fed officials, market panic could not be eased. Hong Kong stocks plunged 640 points today, falling 537 points or 2.19% for the week, marking the fourth consecutive weekly decline.
Rising U.S. bond yields severely pressured tech and internet stocks. Xiaomi (01810) fell 3.96% to HK$24.24, Baidu (09888) dropped 3.03% to HK$83.2, Tencent (00700) declined 2.27% to HK$421.2, Meituan (03690) fell 2.09% to HK$70.2, Alibaba (09988) dropped 2.06% to HK$104.4, JD.com (09618) declined 1.34% to HK$102.9; financial stocks also fluctuated sharply, AIA (01299) plunged 5.98% to HK$69.2, HSBC (00005) fell 5.38% to HK$149.5, Standard Chartered (02888) dropped 5.97% to HK$229.8, Bank of China (Hong Kong) (02388) declined 2.97% to HK$50.7.
Northbound-favored biopharmaceutical stocks fell across the board. InnoCare Pharma (09969) dropped 7.84% to HK$13.63, BeiGene (06160) fell 5.86% to HK$212.2, Ascentage Pharma (06855) declined 5.01% to HK$29.2, Zai Lab (09688) dropped 4.8% to HK$19.65, United Laboratories (03933) fell 4.39% to HK$7.625, 3SBio (01530) declined 4.35% to HK$15.85, Insilico Medicine (03696) dropped 4.16% to HK$57.6.
Mainland automakers released September sales figures, with mixed stock price movements. Li Auto (02015) plunged 5.37% to HK$42.62, BYD (01211) fell 2.25% to HK$73.9, XPeng (09868) dropped 3.96% to HK$36.36, Geely Automobile (00175) rose 1.31% to HK$14.74, Leapmotor (09863) gained 0.88% to HK$34.52.
Macau's Gaming Inspection and Coordination Bureau reported that September's gross gaming revenue was MOP 18.06 billion, down 1.2% year-on-year, worse than the expected 2.2% increase, marking the fourth consecutive monthly decline. Galaxy Entertainment (00027) fell 4.17% to HK$30.3, Sands China (01928) dropped 3.97% to HK$11.38.
New World Development (00017) announced its annual results and simultaneously revealed that it has entered into an early termination sublease agreement with the Airport Authority, returning the entire 11 SKIES project to the Airport Authority on April 1 next year and paying a total early termination fee of HK$2.3 billion, resulting in a net loss of approximately HK$18.3 billion, which has already been reflected in the annual results ended June 30 this year. New World Development rose initially before falling, ending the day down 3.8% at HK$5.82.
Weichai Power (02338) rose 1.39% to HK$29.12, the best-performing blue-chip stock.
The three most actively traded stocks in the Hang Seng Index were Tencent, Alibaba, and HSBC; the top three in the China Enterprises Index and Tech Index were Tencent, Alibaba, and Xiaomi. (ey)
