ET Net News Agency reported on the 7th that international oil prices and long-term US bond yields have slightly stabilized, providing continued momentum for US stocks, with both the Nasdaq and S&P 500 reaching new highs and US tech stocks generally performing well. However, after two days of rebound, Hong Kong stocks retreated ahead of the resumption of northbound trading, with heavyweight tech and internet stocks falling collectively, and the biotech sector experiencing even more significant declines. The Hang Seng Index closed at 24,130, down 150 points or 0.6%, with main board turnover further dropping to nearly HK$94.7 billion, remaining below HK$100 billion for three consecutive days. The Hang Seng China Enterprises Index closed at 8,082, down 46 points or 0.6%. The Hang Seng Tech Index closed at 4,194, down 28 points or 0.7%.
After two consecutive days of rebound, the market pulled back one day before northbound trading resumed, suggesting investors may be locking in profits ahead of northbound funds' return. Looking back at market conditions on September 30, the day before the National Day holiday, northbound funds flowed in HK$6.9 billion before the holiday, particularly driving biotech stocks higher, while tech and internet stocks such as Kuaishou (01024) and Meituan (03690) also generally performed well. With funds choosing to take profits today, further pullbacks after northbound trading resumes cannot be ruled out, especially since biotech stocks, despite today's correction, still have relatively high share prices, and northbound funds may further lock in profits. Therefore, even with the resumption of northbound trading tomorrow, excessive optimism should be avoided. For now, the Hang Seng Index may see another pullback tomorrow, with initial support around 24,000.
*Biotech stocks plunge before northbound trading resumes; high US bond yields trigger tech and internet stock corrections*
Biotech stocks fell ahead of the resumption of northbound trading: Insilico Medicine (03696) dropped 10.6%, closing at HK$53; WuXi Biologics (02269) fell 2.1%, closing at HK$56.7; Innovent Biologics (01801) declined 1.9%, closing at HK$97.5; Ascentage Pharma (06855) dropped 6.2%, closing at HK$28.88; Genscript Biotech (01548) plunged 12.7%, closing at HK$42.9.
High US bond yields and the heated AI concept rally in US stocks caused local tech and internet stocks to be overlooked: Alibaba (09988) fell 2.6%, closing at HK$105.4, the second-largest decliner among blue chips; Tencent (00700) dropped 1.8%, closing at HK$420.6; Baidu (09888) declined 1.6%, closing at HK$84.75; Xiaomi (01810) fell 1.3%, closing at HK$23.94.
Chip stocks also declined: Hua Hong Semiconductor (01347) dropped 2.7%, closing at HK$105.3, the biggest decliner among blue chips; SMIC (00981) fell 1.1%, closing at HK$60.9; GigaDevice (03986) declined 2.7%, closing at HK$431; TianShu Zhixin (09903) dropped 2%, closing at HK$99.2; Biren Technology (06082) fell 3.3%, closing at HK$34.44.
*WH Group near one-year low forms golden cross*
After experiencing a downtrend since mid-April, WH Group (00288) showed signs of stabilization in mid-September. Recently, its share price has fluctuated around HK$6.3 to HK$6.8, a level similar to where it stood before the uptrend began in October last year. Additionally, its share price has shown a subtle upward trend recently, accompanied by increased trading volume. Today, WH Group bucked the market trend and strengthened, rising 2.1% for the day to close at HK$6.685. Moreover, its 10-day moving average touched its 20-day moving average (intersecting at around HK$6.58), forming a golden cross, signaling a short-term reversal and strength. The short-term outlook for WH Group is promising.
Currently, WH Group's share price remains relatively low. Investors interested in positioning could consider entering at current levels, with the first target around HK$7.2, the price level seen in early September this year, which coincides with the 50-day moving average. If the upward momentum continues, the next target could be around HK$8, the level seen in mid-August. (am)
After two consecutive days of rebound, the market pulled back one day before northbound trading resumed, suggesting investors may be locking in profits ahead of northbound funds' return. Looking back at market conditions on September 30, the day before the National Day holiday, northbound funds flowed in HK$6.9 billion before the holiday, particularly driving biotech stocks higher, while tech and internet stocks such as Kuaishou (01024) and Meituan (03690) also generally performed well. With funds choosing to take profits today, further pullbacks after northbound trading resumes cannot be ruled out, especially since biotech stocks, despite today's correction, still have relatively high share prices, and northbound funds may further lock in profits. Therefore, even with the resumption of northbound trading tomorrow, excessive optimism should be avoided. For now, the Hang Seng Index may see another pullback tomorrow, with initial support around 24,000.
*Biotech stocks plunge before northbound trading resumes; high US bond yields trigger tech and internet stock corrections*
Biotech stocks fell ahead of the resumption of northbound trading: Insilico Medicine (03696) dropped 10.6%, closing at HK$53; WuXi Biologics (02269) fell 2.1%, closing at HK$56.7; Innovent Biologics (01801) declined 1.9%, closing at HK$97.5; Ascentage Pharma (06855) dropped 6.2%, closing at HK$28.88; Genscript Biotech (01548) plunged 12.7%, closing at HK$42.9.
High US bond yields and the heated AI concept rally in US stocks caused local tech and internet stocks to be overlooked: Alibaba (09988) fell 2.6%, closing at HK$105.4, the second-largest decliner among blue chips; Tencent (00700) dropped 1.8%, closing at HK$420.6; Baidu (09888) declined 1.6%, closing at HK$84.75; Xiaomi (01810) fell 1.3%, closing at HK$23.94.
Chip stocks also declined: Hua Hong Semiconductor (01347) dropped 2.7%, closing at HK$105.3, the biggest decliner among blue chips; SMIC (00981) fell 1.1%, closing at HK$60.9; GigaDevice (03986) declined 2.7%, closing at HK$431; TianShu Zhixin (09903) dropped 2%, closing at HK$99.2; Biren Technology (06082) fell 3.3%, closing at HK$34.44.
*WH Group near one-year low forms golden cross*
After experiencing a downtrend since mid-April, WH Group (00288) showed signs of stabilization in mid-September. Recently, its share price has fluctuated around HK$6.3 to HK$6.8, a level similar to where it stood before the uptrend began in October last year. Additionally, its share price has shown a subtle upward trend recently, accompanied by increased trading volume. Today, WH Group bucked the market trend and strengthened, rising 2.1% for the day to close at HK$6.685. Moreover, its 10-day moving average touched its 20-day moving average (intersecting at around HK$6.58), forming a golden cross, signaling a short-term reversal and strength. The short-term outlook for WH Group is promising.
Currently, WH Group's share price remains relatively low. Investors interested in positioning could consider entering at current levels, with the first target around HK$7.2, the price level seen in early September this year, which coincides with the 50-day moving average. If the upward momentum continues, the next target could be around HK$8, the level seen in mid-August. (am)
