The Economic Information Daily (7th) reported: Although U.S. 10-year Treasury yields retreated slightly overnight, they remained high. Wall Street's new wave of AI investment enthusiasm has not cooled down, leading to broad gains in tech and AI stocks overnight. Both the Nasdaq and S&P 500 hit record highs. On the last day of the National Day holiday, tech, internet, and biotechnology sectors declined ahead of the return of northbound funds, dragging down the Hang Seng Index by 150 points, or 0.6%, closing at 24,130. 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%.
Investor focus remained on individual stocks rather than the broader market. Total turnover on the main board for the day was nearly HKD 94.7 billion, the lowest since September 2024 when considering full-day trading, and marking the third consecutive trading day with turnover below HKD 100 billion. With A-shares resuming trading tomorrow and Stock Connect services restarting, Hong Kong market turnover is expected to rebound significantly. However, given ongoing risks in the global bond market and strong momentum in popular U.S. market sectors, it will still be difficult for turnover to return above HKD 200 billion.
U.S. AI-related stocks continued to be favored, while Hong Kong's tech and internet sector, after a one-day rebound, came under pressure again. Early in the session, tech stocks dominated the list of Hang Seng Index constituents with the largest losses. Losses narrowed in the afternoon. Alibaba (09988) fell over 5% at one point, finding support at HKD 100, and closed down 2.59% at HKD 105.4. Baidu (09888) dropped 1.63% to HKD 84.75. Tencent (00700) declined 1.77% to HKD 420.6. Meituan (03690) fell 0.92% to HKD 70.15. Xiaomi (01810) dropped 1.32% to HKD 23.94. Kuaishou (01024), which had previously rallied on speculation about KL's listing progress, retreated 1.59% to HKD 29.7.
AI pharmaceutical-related stocks saw significant declines. GenScript (01548) plunged 12.7% to HKD 42.9, after earlier speculation about an advisor winning a Nobel Prize. XtalPi (02228) tumbled 12.1% to HKD 7.3. Insilico Medicine (03696) fell 10.62% to HKD 53. Jetion Technologies (07666) dropped 4.75% to HKD 16.86. Other biotech stocks also declined: WuXi Biologics (02269) fell 2.07% to HKD 56.7; China Biopharmaceutical (01177) dipped 1.99% to HKD 5.675; Hansoh Pharmaceutical (03692) declined 1.97% to HKD 33.92; Innovent Biologics (01801) fell 1.86% to HKD 97.5; CSPC Pharmaceutical Group (01093) dropped 1.85% to HKD 9.815.
The semiconductor sector also weakened. SMIC (00981) fell 1.06% to HKD 60.9. Hua Hong Semiconductor (01347) dropped 2.68% to HKD 105.3. TianShu AI (09903) declined 1.98% to HKD 99.2. Montage Technology (06809) plunged 6.37% to HKD 291.
HSBC (00005) fell 1.9% to HKD 149.9. Standard Chartered (02888) dropped 2.71% to HKD 230. AIA (01299) was unchanged at HKD 68.8.
Weichai Power (02338) led the gainers among blue chips, rising 4.68% to HKD 30.86.
The top three most actively traded stocks in the Hang Seng Index were Alibaba, Tencent, and AIA (01299), with AIA closing at HKD 68.8, unchanged. The top three in the China Enterprises Index and the Tech Index were Alibaba, Tencent, and Lenovo Group (00992). Lenovo Group closed at HKD 35.16, down 0.7%. (ey)
Investor focus remained on individual stocks rather than the broader market. Total turnover on the main board for the day was nearly HKD 94.7 billion, the lowest since September 2024 when considering full-day trading, and marking the third consecutive trading day with turnover below HKD 100 billion. With A-shares resuming trading tomorrow and Stock Connect services restarting, Hong Kong market turnover is expected to rebound significantly. However, given ongoing risks in the global bond market and strong momentum in popular U.S. market sectors, it will still be difficult for turnover to return above HKD 200 billion.
U.S. AI-related stocks continued to be favored, while Hong Kong's tech and internet sector, after a one-day rebound, came under pressure again. Early in the session, tech stocks dominated the list of Hang Seng Index constituents with the largest losses. Losses narrowed in the afternoon. Alibaba (09988) fell over 5% at one point, finding support at HKD 100, and closed down 2.59% at HKD 105.4. Baidu (09888) dropped 1.63% to HKD 84.75. Tencent (00700) declined 1.77% to HKD 420.6. Meituan (03690) fell 0.92% to HKD 70.15. Xiaomi (01810) dropped 1.32% to HKD 23.94. Kuaishou (01024), which had previously rallied on speculation about KL's listing progress, retreated 1.59% to HKD 29.7.
AI pharmaceutical-related stocks saw significant declines. GenScript (01548) plunged 12.7% to HKD 42.9, after earlier speculation about an advisor winning a Nobel Prize. XtalPi (02228) tumbled 12.1% to HKD 7.3. Insilico Medicine (03696) fell 10.62% to HKD 53. Jetion Technologies (07666) dropped 4.75% to HKD 16.86. Other biotech stocks also declined: WuXi Biologics (02269) fell 2.07% to HKD 56.7; China Biopharmaceutical (01177) dipped 1.99% to HKD 5.675; Hansoh Pharmaceutical (03692) declined 1.97% to HKD 33.92; Innovent Biologics (01801) fell 1.86% to HKD 97.5; CSPC Pharmaceutical Group (01093) dropped 1.85% to HKD 9.815.
The semiconductor sector also weakened. SMIC (00981) fell 1.06% to HKD 60.9. Hua Hong Semiconductor (01347) dropped 2.68% to HKD 105.3. TianShu AI (09903) declined 1.98% to HKD 99.2. Montage Technology (06809) plunged 6.37% to HKD 291.
HSBC (00005) fell 1.9% to HKD 149.9. Standard Chartered (02888) dropped 2.71% to HKD 230. AIA (01299) was unchanged at HKD 68.8.
Weichai Power (02338) led the gainers among blue chips, rising 4.68% to HKD 30.86.
The top three most actively traded stocks in the Hang Seng Index were Alibaba, Tencent, and AIA (01299), with AIA closing at HKD 68.8, unchanged. The top three in the China Enterprises Index and the Tech Index were Alibaba, Tencent, and Lenovo Group (00992). Lenovo Group closed at HKD 35.16, down 0.7%. (ey)
