{Economic Information Daily, 12th} U.S. President Trump said on Sunday that Russia and Ukraine have agreed to immediately implement an "energy ceasefire." Zelenskyy responded that Ukraine supports this arrangement, while emphasizing that Russia must also comply. In addition, Washington and Moscow reached an agreement allowing Russian diesel exports, with Trump stating that the related diesel will enter the global market starting this month, totaling approximately 13.5 million barrels. With inflationary pressures easing ahead of the U.S. midterm elections, the Hang Seng Index opened 223 points higher, led by tech and internet stocks. However, AI hardware and auto stocks were under pressure, causing gains to retreat. Supported at the 10-day moving average (around 24,247), the Hang Seng Index closed the day at 24,271, up 59 points or 0.2%. The Hang Seng China Enterprises Index closed at 8,168, up 20 points or 0.3%. The Hang Seng Tech Index closed at 4,169, down 28 points or 0.7%. As U.S. stocks enter earnings season, turnover on the Hong Kong main board retreated from the HK$200 billion level, recording today a volume of HK$162.6 billion. Northbound Stock Connect recorded a net inflow of HK$2.6 billion.
Mainland bank stocks rose notably in the afternoon, providing market support. China Merchants Bank (03968) gained 3.07%, closing at HK$53.80; Agricultural Bank of China (01288) rose 2.78% to HK$6.665; Bank of China (03988) increased 2.04% to HK$6.25; China Construction Bank (00939) rose 1.8% to HK$9.91; Industrial and Commercial Bank of China (01398) gained 1.6% to HK$7.62. Hong Kong banks followed suit: HSBC (00005) rose 2%, closing at HK$148.10, contributing 35 points to the Hang Seng Index's gain; Bank of China (Hong Kong) (02388) rose 1.85% to HK$50.60; Standard Chartered (02888) gained 1.54% to HK$224.40.
With geopolitical tensions showing signs of improvement ahead of the U.S. midterm elections, tech and internet stocks rose in early trading, though performance diverged later. Alibaba (09988) gained 1.12% to HK$108.20; Tencent (00700) rose 0.24% to HK$425.80; Baidu (09888) fell 1.45% to HK$81.80; Meituan (03690) gained 0.42% to HK$71.80; NetEase (09999) rose 2.89% to HK$199.10; JD.com (09618) gained 2.75% to HK$108.50.
The EU and China have finally reached an agreement on hybrid vehicle exports, under which China will limit vehicle exports to the EU to avoid punitive tariffs. The EU expects Chinese hybrid vehicle exports to the region to fall by more than half. Auto stocks showed mixed performance: Xiaomi (01810) plunged 5.55% to HK$24.52; BYD (01211) fell 1.65% to HK$74.35; NIO (09866) rose 0.15% to HK$27.14; XPeng (09868) gained 0.37% to HK$38.48; Leapmotor (09863) rose 4.31% to HK$36.30; Li Auto (02015) gained 0.54% to HK$44.90.
AI hardware stocks continued to decline for several consecutive days: Hua Hong Semiconductor (01347) fell 4.97%, closing at HK$89.85, marking five consecutive days of losses with a cumulative drop of 18.32%; Kingboard Laminates (01888) dropped 4.49% to HK$46.80; Yangtze Optical Fibre and Cable (06869) plunged 7.25% to HK$156.10; SMIC (00981) fell 2.52% to HK$56.20.
Citigroup issued a research report, lowering its target price for Lao Pu Gold (06181) from HK$507 to HK$400, a reduction of about 21%, while maintaining a Buy rating. The bank noted that ongoing gold price volatility has suppressed consumer willingness to spend on gold products, dragging Lao Pu Gold's third-quarter sales recovery. Lao Pu Gold dropped 7.89% to HK$310.40.
Orient Overseas (00316) led blue-chip gains, rising 4.38% to HK$159.70, marking four consecutive days of gains with a cumulative increase of 11.91%.
The top three most actively traded stocks on the Hang Seng Index, China Enterprises Index, and Tech Index were Tencent, Alibaba, and Xiaomi, respectively. (ey)
Mainland bank stocks rose notably in the afternoon, providing market support. China Merchants Bank (03968) gained 3.07%, closing at HK$53.80; Agricultural Bank of China (01288) rose 2.78% to HK$6.665; Bank of China (03988) increased 2.04% to HK$6.25; China Construction Bank (00939) rose 1.8% to HK$9.91; Industrial and Commercial Bank of China (01398) gained 1.6% to HK$7.62. Hong Kong banks followed suit: HSBC (00005) rose 2%, closing at HK$148.10, contributing 35 points to the Hang Seng Index's gain; Bank of China (Hong Kong) (02388) rose 1.85% to HK$50.60; Standard Chartered (02888) gained 1.54% to HK$224.40.
With geopolitical tensions showing signs of improvement ahead of the U.S. midterm elections, tech and internet stocks rose in early trading, though performance diverged later. Alibaba (09988) gained 1.12% to HK$108.20; Tencent (00700) rose 0.24% to HK$425.80; Baidu (09888) fell 1.45% to HK$81.80; Meituan (03690) gained 0.42% to HK$71.80; NetEase (09999) rose 2.89% to HK$199.10; JD.com (09618) gained 2.75% to HK$108.50.
The EU and China have finally reached an agreement on hybrid vehicle exports, under which China will limit vehicle exports to the EU to avoid punitive tariffs. The EU expects Chinese hybrid vehicle exports to the region to fall by more than half. Auto stocks showed mixed performance: Xiaomi (01810) plunged 5.55% to HK$24.52; BYD (01211) fell 1.65% to HK$74.35; NIO (09866) rose 0.15% to HK$27.14; XPeng (09868) gained 0.37% to HK$38.48; Leapmotor (09863) rose 4.31% to HK$36.30; Li Auto (02015) gained 0.54% to HK$44.90.
AI hardware stocks continued to decline for several consecutive days: Hua Hong Semiconductor (01347) fell 4.97%, closing at HK$89.85, marking five consecutive days of losses with a cumulative drop of 18.32%; Kingboard Laminates (01888) dropped 4.49% to HK$46.80; Yangtze Optical Fibre and Cable (06869) plunged 7.25% to HK$156.10; SMIC (00981) fell 2.52% to HK$56.20.
Citigroup issued a research report, lowering its target price for Lao Pu Gold (06181) from HK$507 to HK$400, a reduction of about 21%, while maintaining a Buy rating. The bank noted that ongoing gold price volatility has suppressed consumer willingness to spend on gold products, dragging Lao Pu Gold's third-quarter sales recovery. Lao Pu Gold dropped 7.89% to HK$310.40.
Orient Overseas (00316) led blue-chip gains, rising 4.38% to HK$159.70, marking four consecutive days of gains with a cumulative increase of 11.91%.
The top three most actively traded stocks on the Hang Seng Index, China Enterprises Index, and Tech Index were Tencent, Alibaba, and Xiaomi, respectively. (ey)
