{Economic Information Daily, 7th} Overnight, although the yield on the US 10-year Treasury bond slightly retreated, it remained high. Wall Street's new wave of AI investment enthusiasm has not cooled down, with technology and AI-related stocks generally rising overnight. Both the Nasdaq and S&P 500 hit new highs. On the final day of the National Day holiday, ahead of the resumption of northbound trading, Hong Kong stocks retreated first. The tech, internet, and biotechnology sectors fell even before northbound funds returned, dragging down the Hang Seng Index by 128 points, or 0.5%, to close the morning session at 24,151. The Hang Seng China Enterprises Index stood at 8,075, down 53 points or 0.7%. The Hang Seng Tech Index was at 4,184, down 38 points or 0.9%.
Funds continue to focus on selective stocks rather than the broader market. Mainboard turnover was around HK$51.8 billion, about HK$2 billion less than the ultra-low level during the same period the previous day (6th). Norman Chan of the HKMA stated that if the interest rate differential between Hong Kong and the US remains significant, the linked exchange rate system's automatic interest rate adjustment mechanism would lead to a weakening of the Hong Kong dollar. DBS Bank predicts the Hong Kong dollar could test the weak-side convertibility guarantee level of 7.85 per US dollar as early as October.
US AI-related stocks continue to be favored, while Hong Kong's tech and internet sector, after a one-day rebound, is once again neglected. The four traditional tech stocks dominated the top four biggest losers among blue chips: Alibaba (09988) fell 3.05% to HK$104.90, Baidu (09888) dropped 2.21% to HK$84.25, Kuaishou (01024) declined 2.12% to HK$29.54, Tencent (00700) slipped 1.91% to HK$420. Meituan (03690) fell 1.27% to HK$69.90, Xiaomi (01810) dropped 1.57% to HK$23.88.
AI biopharma-related stocks saw significant declines. GenScript (01548) plunged 12.74% to HK$42.88 after speculation that a consultant expert had won a Nobel Prize. XtalPi (02228) fell 11.2% to HK$7.375, Insilico Medicine (03696) dropped 10.79% to HK$52.90, MegaZeus-P (07666) declined 6.33% to HK$16.58. Other biotech stocks also fell: Innovent Biologics (01801) down 1.91% to HK$97.45, WuXi Biologics (02269) lower by 1.81% to HK$56.85, CSPC Pharmaceutical Group (01093) down 1.4% to HK$9.86, Hansoh Pharmaceutical (03692) fell 1.39% to HK$34.12, China Biologic Products (01177) down 1.3% to HK$5.715.
The semiconductor sector also weakened: SMIC (00981) dropped 1.14% to HK$60.85, Hua Hong Semiconductor (01347) fell 1.48% to HK$106.60, TianShu AI (09903) declined 0.59% to HK$100.60, Montage Technology (06809) plunged 6.11% to HK$291.80.
Weichai Power (02338) led the gainers among blue chips, rising 5.63% to HK$31.14. WH Group (00288) gained 2.44% to HK$6.71.
The top three most actively traded stocks in the Hang Seng Index were Alibaba, Tencent, and AIA (01299). AIA was up 0.7% at HK$69.25. The top three most traded stocks in the China Enterprises Index and the Tech Index were Alibaba, Tencent, and Lenovo Group (00992). Lenovo Group rose 0.3% to HK$35.52. (ey)
Funds continue to focus on selective stocks rather than the broader market. Mainboard turnover was around HK$51.8 billion, about HK$2 billion less than the ultra-low level during the same period the previous day (6th). Norman Chan of the HKMA stated that if the interest rate differential between Hong Kong and the US remains significant, the linked exchange rate system's automatic interest rate adjustment mechanism would lead to a weakening of the Hong Kong dollar. DBS Bank predicts the Hong Kong dollar could test the weak-side convertibility guarantee level of 7.85 per US dollar as early as October.
US AI-related stocks continue to be favored, while Hong Kong's tech and internet sector, after a one-day rebound, is once again neglected. The four traditional tech stocks dominated the top four biggest losers among blue chips: Alibaba (09988) fell 3.05% to HK$104.90, Baidu (09888) dropped 2.21% to HK$84.25, Kuaishou (01024) declined 2.12% to HK$29.54, Tencent (00700) slipped 1.91% to HK$420. Meituan (03690) fell 1.27% to HK$69.90, Xiaomi (01810) dropped 1.57% to HK$23.88.
AI biopharma-related stocks saw significant declines. GenScript (01548) plunged 12.74% to HK$42.88 after speculation that a consultant expert had won a Nobel Prize. XtalPi (02228) fell 11.2% to HK$7.375, Insilico Medicine (03696) dropped 10.79% to HK$52.90, MegaZeus-P (07666) declined 6.33% to HK$16.58. Other biotech stocks also fell: Innovent Biologics (01801) down 1.91% to HK$97.45, WuXi Biologics (02269) lower by 1.81% to HK$56.85, CSPC Pharmaceutical Group (01093) down 1.4% to HK$9.86, Hansoh Pharmaceutical (03692) fell 1.39% to HK$34.12, China Biologic Products (01177) down 1.3% to HK$5.715.
The semiconductor sector also weakened: SMIC (00981) dropped 1.14% to HK$60.85, Hua Hong Semiconductor (01347) fell 1.48% to HK$106.60, TianShu AI (09903) declined 0.59% to HK$100.60, Montage Technology (06809) plunged 6.11% to HK$291.80.
Weichai Power (02338) led the gainers among blue chips, rising 5.63% to HK$31.14. WH Group (00288) gained 2.44% to HK$6.71.
The top three most actively traded stocks in the Hang Seng Index were Alibaba, Tencent, and AIA (01299). AIA was up 0.7% at HK$69.25. The top three most traded stocks in the China Enterprises Index and the Tech Index were Alibaba, Tencent, and Lenovo Group (00992). Lenovo Group rose 0.3% to HK$35.52. (ey)
