The Economic Journal, March 13 - Hong Kong stock turnover remained low. Although market turnover rose to around HK$200 billion in the latter part of last week due to northbound funds, it dropped again below the HK$200 billion mark at the beginning of this new week. Overnight, external markets performed weakly. Oil prices rose due to instability in the Middle East, clearly reducing risk appetite for tech stocks. This morning, global AI hardware stocks declined collectively, dragging down related sectors in Hong Kong. The Hang Seng Index was under pressure early in the session and briefly fell below 24,000. However, after testing below 24,000, funds flowed back in for bottom fishing. In the afternoon session, the index turned from decline to rise, eventually closing at its highest level of the day at 24,345, up 74 points or 0.3%. Main board turnover reached nearly HK$187.6 billion. The Hang Seng China Enterprises Index closed at 8,174, up 6 points or less than 0.1%. The Hang Seng Tech Index closed at 4,136, down 32 points or 0.8%.
Turnover in Hong Kong stocks today remained below the HK$200 billion benchmark, but increased by nearly HK$25 billion compared to yesterday. Moreover, the Hang Seng Index first declined and then rebounded, closing at its highest level of the day, forming a hammer pattern on the daily chart, indicating a relatively positive short-term outlook. However, investors should note that inflation data from both China and the United States will be released this week, which will simultaneously affect economic outlook forecasts for both external and domestic markets. The market still has a high chance of being volatile, as economic data trends are difficult to predict. It is therefore not advisable to place overly heavy bets on favorable patterns. Cautious investors may wait for the data release before seizing opportunities.
*Longxin's surprise announcement at Korean semiconductor conference hits Korean stocks*
Overnight, US tech stocks weakened. The Philadelphia Semiconductor Index fell 2.7%, and Micron (US.MU) dropped nearly 4%. AI infrastructure stocks were sold off across the board; Yangtze Optical Fibre and Cable (06869) fell 3.5% to HK$150.6; Zhongji Xuchuang (03308) dropped 1.4% to HK$890; Sanhuan Group (06951) declined 0.9% to HK$103.4; Kingboard Laminate (01888) fell 4.5% to HK$44.7; Sunway Technology (02476) dropped 1.1% to HK$172.8.
Chip stocks declined across the board; Hua Hong Semiconductor (01347) fell 5.3% to HK$85.1; SMIC (00981) dropped 1.2% to HK$55.55; Montage Technology (06809) declined 5.1% to HK$241.8; GigaDevice (03986) fell 4.1% to HK$360.2; TianShu ZhiXin (09903) dropped 3.5% to HK$84.9; Biren Technology (06082) declined 5.6% to HK$28.24.
In addition, ChangXin Memory Technologies announced a key breakthrough in its 4F^2 DRAM architecture, reducing the storage cell area by about 33% compared to the current mainstream 6F^2 architecture, allowing more storage cells to be integrated per wafer and increasing storage density. The news was released just before the Korean semiconductor exhibition opens tomorrow, prompting investors to sell off Korean memory chip stocks in advance. The Korean KOSPI index plunged nearly 5.5% for the day, SK Hynix tumbled over 10%, and Samsung Electronics fell more than 7%. Related Korean ETFs were hit across the board; Southern 2x Long Hynix (07709) dropped 18% to HK$26.1; Southern 2x Long Samsung (07747) fell 13.6% to HK$57.6; Southern KOSPI (03121) declined 6.9% to HK$5.86; A Southern Korea Covered Call (03537) dropped 6.1% to HK$8.4.
*Kingsoft Software forming a positive triangle consolidation, worth close attention*
Xiaomi (01810), responding to the sharp rise in memory chip prices, has clearly slowed its AI development progress this year to reduce capital expenditure and counteract the memory price surge. However, Kingsoft, also controlled by Lei Jun of Xiaomi, has long been regarded as the behind-the-scenes base for Lei Jun's AI development. Although Kingsoft rarely releases news, since the second half of this year, Lei Jun has repeatedly and incrementally increased his stake in Kingsoft Software (03888). From a shareholding of less than 23% at the beginning of June this year, after the latest disclosure of an additional 310,000 shares purchased at the beginning of this month, his latest stake has increased to 27.9%, meaning he has gradually increased his holdings by about 5% over four months.
In terms of stock price movement, Kingsoft Software has been rebounding steadily since stabilizing around HK$21 at the beginning of June, roughly coinciding with the start of Lei Jun's quiet buybacks. The stock price was subsequently capped twice by the 250-day moving average, once in early August and again yesterday, but has remained firmly above the 100-day moving average near HK$24. The price pattern is currently forming a triangle consolidation. If the stock price subsequently breaks above and stabilizes above the 250-day moving average (around HK$26.38), it will confirm a successful triangle breakout. Investors looking to capture this bullish breakout should consider buying on near-term price dips over the next one or two days. If the breakout succeeds, the initial target could be HK$32. (hc)
Turnover in Hong Kong stocks today remained below the HK$200 billion benchmark, but increased by nearly HK$25 billion compared to yesterday. Moreover, the Hang Seng Index first declined and then rebounded, closing at its highest level of the day, forming a hammer pattern on the daily chart, indicating a relatively positive short-term outlook. However, investors should note that inflation data from both China and the United States will be released this week, which will simultaneously affect economic outlook forecasts for both external and domestic markets. The market still has a high chance of being volatile, as economic data trends are difficult to predict. It is therefore not advisable to place overly heavy bets on favorable patterns. Cautious investors may wait for the data release before seizing opportunities.
*Longxin's surprise announcement at Korean semiconductor conference hits Korean stocks*
Overnight, US tech stocks weakened. The Philadelphia Semiconductor Index fell 2.7%, and Micron (US.MU) dropped nearly 4%. AI infrastructure stocks were sold off across the board; Yangtze Optical Fibre and Cable (06869) fell 3.5% to HK$150.6; Zhongji Xuchuang (03308) dropped 1.4% to HK$890; Sanhuan Group (06951) declined 0.9% to HK$103.4; Kingboard Laminate (01888) fell 4.5% to HK$44.7; Sunway Technology (02476) dropped 1.1% to HK$172.8.
Chip stocks declined across the board; Hua Hong Semiconductor (01347) fell 5.3% to HK$85.1; SMIC (00981) dropped 1.2% to HK$55.55; Montage Technology (06809) declined 5.1% to HK$241.8; GigaDevice (03986) fell 4.1% to HK$360.2; TianShu ZhiXin (09903) dropped 3.5% to HK$84.9; Biren Technology (06082) declined 5.6% to HK$28.24.
In addition, ChangXin Memory Technologies announced a key breakthrough in its 4F^2 DRAM architecture, reducing the storage cell area by about 33% compared to the current mainstream 6F^2 architecture, allowing more storage cells to be integrated per wafer and increasing storage density. The news was released just before the Korean semiconductor exhibition opens tomorrow, prompting investors to sell off Korean memory chip stocks in advance. The Korean KOSPI index plunged nearly 5.5% for the day, SK Hynix tumbled over 10%, and Samsung Electronics fell more than 7%. Related Korean ETFs were hit across the board; Southern 2x Long Hynix (07709) dropped 18% to HK$26.1; Southern 2x Long Samsung (07747) fell 13.6% to HK$57.6; Southern KOSPI (03121) declined 6.9% to HK$5.86; A Southern Korea Covered Call (03537) dropped 6.1% to HK$8.4.
*Kingsoft Software forming a positive triangle consolidation, worth close attention*
Xiaomi (01810), responding to the sharp rise in memory chip prices, has clearly slowed its AI development progress this year to reduce capital expenditure and counteract the memory price surge. However, Kingsoft, also controlled by Lei Jun of Xiaomi, has long been regarded as the behind-the-scenes base for Lei Jun's AI development. Although Kingsoft rarely releases news, since the second half of this year, Lei Jun has repeatedly and incrementally increased his stake in Kingsoft Software (03888). From a shareholding of less than 23% at the beginning of June this year, after the latest disclosure of an additional 310,000 shares purchased at the beginning of this month, his latest stake has increased to 27.9%, meaning he has gradually increased his holdings by about 5% over four months.
In terms of stock price movement, Kingsoft Software has been rebounding steadily since stabilizing around HK$21 at the beginning of June, roughly coinciding with the start of Lei Jun's quiet buybacks. The stock price was subsequently capped twice by the 250-day moving average, once in early August and again yesterday, but has remained firmly above the 100-day moving average near HK$24. The price pattern is currently forming a triangle consolidation. If the stock price subsequently breaks above and stabilizes above the 250-day moving average (around HK$26.38), it will confirm a successful triangle breakout. Investors looking to capture this bullish breakout should consider buying on near-term price dips over the next one or two days. If the breakout succeeds, the initial target could be HK$32. (hc)
