ET Net News Agency reported on the 8th: Today marks the first trading day after the end of mainland China's National Day holiday. With A-shares resuming trading, the Stock Connect program has resumed operations. However, risks in global bond markets continue to accumulate, with the yield on 10-year U.S. Treasury bonds rising to 5.325%. Additionally, the U.S. Treasury's auction of $39 billion in 10-year bonds received strong demand, with the bid-to-cover ratio reaching 2.77 times, the highest level in nearly 10 years. All three major U.S. stock indices declined. Despite increased turnover driven by northbound funds, Hong Kong stocks extended yesterday's downward trend. After breaking below the psychological level of 24,000, the decline further widened. The Hang Seng Index closed at 23,785, down 344 points or 1.4%, with main board turnover rebounding to nearly HK$207.3 billion. The Hang Seng China Enterprises Index closed at 8,010, down 71 points or 0.9%. The Hang Seng Tech Index closed at 4,073, down 121 points or 2.9%.
Although northbound funds recorded nearly HK$6.5 billion in net inflows today and overall market turnover rebounded above HK$200 billion after A-shares resumed trading, overall market funds turned net outflows of nearly HK$1.6 billion. With today's sharp correction in Hong Kong stocks, there appears to be a further intention for funds to exit. The active buy-to-sell ratio among ultra-large traders with transaction amounts exceeding HK$10 million today reached 45:55. With global bond yields remaining high and strong demand in U.S. Treasury auctions, further fund outflows from Hong Kong stocks cannot be ruled out. Biotech stocks and other previously heavily traded sectors may face greater correction pressure. In the short term, Hong Kong stocks may further test previous support levels. Although the market may see some bargain hunting at lower levels tomorrow after two consecutive days of correction, the rebound is expected to be limited, possibly reaching around the 24,000 level, with downside support potentially moving further down to 23,500.
*Biotech stocks face relentless selling; multinational financial stocks remain under pressure*
After northbound trading resumed, selling pressure on biotech stocks intensified. The biotech index closed down 620 points or 3.8% at 15,685. Insilico Medicine (03696) fell 9% to HK$48.24, down 18.6% over two days; Innovent Biologics (01801) dropped 5% to HK$92.6, down 6.8% over two days; WuXi Biologics (02269) declined 4.6% to HK$54.1, down 6.6% over two days; CSPC Pharmaceutical Group (01093) fell 5.4% to HK$9.285, down 7.2% over two days.
Ongoing concerns over potential UK windfall tax hikes and layoff rumors continue to pressure ADRs, weighing on multinational financial stocks. HSBC (00005) dropped 4.9% to HK$142.6, down 6.7% over two days; Standard Chartered (02888) fell 5.2% to HK$218, down 7.8% over two days; Bank of China (Hong Kong) (02388) declined 4.8% to HK$48.48, down 5.2% over two days.
SpaceX (US.SPCX)'s plan to spend $40 billion on chips sparked capital expenditure concerns, further widening declines in AI hardware and semiconductor stocks. Hua Hong Semiconductor (01347) plunged 9.2% to HK$95.6, the largest decline among blue chips today, down 13.1% over three days; Lenovo Group (00992) dropped 8.1% to HK$32.32, the second-largest decline among blue chips today, down 10% over three days; SMIC (00981) fell 6.7% to HK$56.8, down 7.7% over two days; Cambridge Industries (06166) announced a share placement at an 8% discount and issued HK$3.96 billion in convertible bonds, closing down 3.1% at HK$110.8.
*China Mobile's stock price rises against the market trend*
With U.S. bonds now attracting capital inflows and market demand for stable high returns amid inflationary pressures, stock market liquidity may be diverted. Funds remaining in equities could also be drawn into the bond market, making further stock market corrections possible. Therefore, stock selection should favor shares with higher resistance to declines.
China Mobile (00941) has shown a stable trend since mid-August, with its share price generally fluctuating between HK$79 and HK$80. In the past two days, as the broader market corrected, China Mobile rose against the trend and showed less correction than the overall market during previous downturns. For example, last Friday (the 2nd), when the Hang Seng Index plunged 640 points or 2.6%, China Mobile only corrected about 0.76%. Additionally, with its current weekly dividend yield reaching 6.8% and its payout ratio rising steadily year-on-year, China Mobile's income-generating value becomes even more prominent amid rising market demands for yield returns.
China Mobile's share price has risen somewhat over the past two days, so investors may consider waiting for a slight pullback closer to HK$79 before entering. The near-term target could be HK$81. (am)
Although northbound funds recorded nearly HK$6.5 billion in net inflows today and overall market turnover rebounded above HK$200 billion after A-shares resumed trading, overall market funds turned net outflows of nearly HK$1.6 billion. With today's sharp correction in Hong Kong stocks, there appears to be a further intention for funds to exit. The active buy-to-sell ratio among ultra-large traders with transaction amounts exceeding HK$10 million today reached 45:55. With global bond yields remaining high and strong demand in U.S. Treasury auctions, further fund outflows from Hong Kong stocks cannot be ruled out. Biotech stocks and other previously heavily traded sectors may face greater correction pressure. In the short term, Hong Kong stocks may further test previous support levels. Although the market may see some bargain hunting at lower levels tomorrow after two consecutive days of correction, the rebound is expected to be limited, possibly reaching around the 24,000 level, with downside support potentially moving further down to 23,500.
*Biotech stocks face relentless selling; multinational financial stocks remain under pressure*
After northbound trading resumed, selling pressure on biotech stocks intensified. The biotech index closed down 620 points or 3.8% at 15,685. Insilico Medicine (03696) fell 9% to HK$48.24, down 18.6% over two days; Innovent Biologics (01801) dropped 5% to HK$92.6, down 6.8% over two days; WuXi Biologics (02269) declined 4.6% to HK$54.1, down 6.6% over two days; CSPC Pharmaceutical Group (01093) fell 5.4% to HK$9.285, down 7.2% over two days.
Ongoing concerns over potential UK windfall tax hikes and layoff rumors continue to pressure ADRs, weighing on multinational financial stocks. HSBC (00005) dropped 4.9% to HK$142.6, down 6.7% over two days; Standard Chartered (02888) fell 5.2% to HK$218, down 7.8% over two days; Bank of China (Hong Kong) (02388) declined 4.8% to HK$48.48, down 5.2% over two days.
SpaceX (US.SPCX)'s plan to spend $40 billion on chips sparked capital expenditure concerns, further widening declines in AI hardware and semiconductor stocks. Hua Hong Semiconductor (01347) plunged 9.2% to HK$95.6, the largest decline among blue chips today, down 13.1% over three days; Lenovo Group (00992) dropped 8.1% to HK$32.32, the second-largest decline among blue chips today, down 10% over three days; SMIC (00981) fell 6.7% to HK$56.8, down 7.7% over two days; Cambridge Industries (06166) announced a share placement at an 8% discount and issued HK$3.96 billion in convertible bonds, closing down 3.1% at HK$110.8.
*China Mobile's stock price rises against the market trend*
With U.S. bonds now attracting capital inflows and market demand for stable high returns amid inflationary pressures, stock market liquidity may be diverted. Funds remaining in equities could also be drawn into the bond market, making further stock market corrections possible. Therefore, stock selection should favor shares with higher resistance to declines.
China Mobile (00941) has shown a stable trend since mid-August, with its share price generally fluctuating between HK$79 and HK$80. In the past two days, as the broader market corrected, China Mobile rose against the trend and showed less correction than the overall market during previous downturns. For example, last Friday (the 2nd), when the Hang Seng Index plunged 640 points or 2.6%, China Mobile only corrected about 0.76%. Additionally, with its current weekly dividend yield reaching 6.8% and its payout ratio rising steadily year-on-year, China Mobile's income-generating value becomes even more prominent amid rising market demands for yield returns.
China Mobile's share price has risen somewhat over the past two days, so investors may consider waiting for a slight pullback closer to HK$79 before entering. The near-term target could be HK$81. (am)
