Economic Information Daily, November 6 - Panic over U.S. Democrats' stance on AI development has triggered a massive sell-off in global semiconductor and AI sectors, severely impacting the three major U.S. indices and causing sharp declines in Japanese, Korean, and Taiwan stocks. Amid such global volatility, Hong Kong stocks could not remain immune. The Hang Seng Index plunged nearly 400 points at the open, failing to hold above the 25,000 level. However, the intraday decline did not widen further, and northbound funds stepped in counter-cyclically. By the close, the HSI's loss narrowed to 315 points, or 1.3%, matching the percentage drop of the Shanghai Composite Index and significantly lower than that of the Shenzhen Component Index and other regional indices, ending at 24,481. The Hang Seng China Enterprises Index closed at 8,274, down 94 points or 1.1%. The Hang Seng Tech Index ended at 4,078, down 76 points or 1.8%. After yesterday's strong rally, the market cooled off today, with main board turnover narrowing to HK$247.4 billion, although northbound funds resumed net inflows of HK$2.4 billion.
Previously, A-shares fell sharply, with the Shanghai Composite Index losing several key round-number levels. In response, multiple Chinese financial regulators jointly introduced supportive easing measures for the stock market, including optimizing policies on stock buybacks and additional loans for share purchases. These policy rumors boosted Hong Kong stocks on Monday (2nd), lifting the index nearly 100 points. After the policy measures were confirmed, the index rose over 100 points again on Tuesday (3rd), with a large volume of northbound funds flooding into Hong Kong ETFs. Subsequently, with the U.S. midterm elections commencing, markets anticipated that a Democratic-controlled Congress would limit President Trump's ability to take aggressive actions, leading to continued gains in Hong Kong stocks on Wednesday and Thursday (4th-5th). Notably, the HSI surged 877 points on Thursday, marking its largest single-day gain since mid-February last year. Therefore, despite today's pullback alongside external markets, the HSI still gained 1,187 points, or 5%, for the week—its second consecutive weekly rise—recovering the 10-day, 20-day, and 50-day moving averages during the period. However, the 100-day moving average (around 24,588) was briefly reclaimed today but then lost again.
Wall Street funds continue to exit AI-related sectors, dragging down Hong Kong AI stocks. Lenovo Group (00992) fell another 3.09% to HK$18.81, SMIC (00981) dropped 4.04% to HK$45.58, Kingboard Laminate (01888) plunged 6.98% to HK$30.40, Yangtze Optical Fibre & Cable (06869) declined 10.46% to HK$86.05, GigaDevice (03986) slumped 7.74% to HK$297.80, Montage Technology (06809) fell 9.37% to HK$183.80, and TianShu ZhiXin (09903) dropped 11.67% to HK$60.95. The AI 'twin darlings' were also hit: MiniMax (00100) declined 8.46% to HK$155.80; Zhipu (02513) fell 10.46% to HK$426.20.
Global market turbulence weighed on international financial stocks. Standard Chartered (02888) dropped 4.74% to HK$217, while HSBC (00005) fell 2.55% to HK$137.50, HSBC (00005) fell 2.55% to HK$137.50. Tech and internet stocks also declined: Alibaba (09988) dropped 3.85% to HK$104.90, holding above the HK$100 level; Tencent (00700) fell 2.46% to HK$419.80; Baidu (09888) declined 3.04% to HK$78.20; Xiaomi (01810) dropped 2.94% to HK$30.38.
Gold prices retreated, dragging down gold miners: Zijin Mining (02899) fell 4.56% to HK$28.90; Zhaojin Mining Industry (01818) dropped 2.74% to HK$17.41.
Domestic demand stocks rose against the market trend. Li Ning (02331) led Hang Seng Index constituents with a 5.16% gain, closing at HK$15.48; Budweiser APAC (01876) rose 2.57% to HK$6.375; Hengan International (01044) gained 2.02% to HK$22.18; Midea Group (00300) advanced 1.42% to HK$100.10.
The three most actively traded stocks on the HSI, HSCCI, and HSTECH were Tencent, Alibaba, and Xiaomi, respectively. (ey)
Previously, A-shares fell sharply, with the Shanghai Composite Index losing several key round-number levels. In response, multiple Chinese financial regulators jointly introduced supportive easing measures for the stock market, including optimizing policies on stock buybacks and additional loans for share purchases. These policy rumors boosted Hong Kong stocks on Monday (2nd), lifting the index nearly 100 points. After the policy measures were confirmed, the index rose over 100 points again on Tuesday (3rd), with a large volume of northbound funds flooding into Hong Kong ETFs. Subsequently, with the U.S. midterm elections commencing, markets anticipated that a Democratic-controlled Congress would limit President Trump's ability to take aggressive actions, leading to continued gains in Hong Kong stocks on Wednesday and Thursday (4th-5th). Notably, the HSI surged 877 points on Thursday, marking its largest single-day gain since mid-February last year. Therefore, despite today's pullback alongside external markets, the HSI still gained 1,187 points, or 5%, for the week—its second consecutive weekly rise—recovering the 10-day, 20-day, and 50-day moving averages during the period. However, the 100-day moving average (around 24,588) was briefly reclaimed today but then lost again.
Wall Street funds continue to exit AI-related sectors, dragging down Hong Kong AI stocks. Lenovo Group (00992) fell another 3.09% to HK$18.81, SMIC (00981) dropped 4.04% to HK$45.58, Kingboard Laminate (01888) plunged 6.98% to HK$30.40, Yangtze Optical Fibre & Cable (06869) declined 10.46% to HK$86.05, GigaDevice (03986) slumped 7.74% to HK$297.80, Montage Technology (06809) fell 9.37% to HK$183.80, and TianShu ZhiXin (09903) dropped 11.67% to HK$60.95. The AI 'twin darlings' were also hit: MiniMax (00100) declined 8.46% to HK$155.80; Zhipu (02513) fell 10.46% to HK$426.20.
Global market turbulence weighed on international financial stocks. Standard Chartered (02888) dropped 4.74% to HK$217, while HSBC (00005) fell 2.55% to HK$137.50, HSBC (00005) fell 2.55% to HK$137.50. Tech and internet stocks also declined: Alibaba (09988) dropped 3.85% to HK$104.90, holding above the HK$100 level; Tencent (00700) fell 2.46% to HK$419.80; Baidu (09888) declined 3.04% to HK$78.20; Xiaomi (01810) dropped 2.94% to HK$30.38.
Gold prices retreated, dragging down gold miners: Zijin Mining (02899) fell 4.56% to HK$28.90; Zhaojin Mining Industry (01818) dropped 2.74% to HK$17.41.
Domestic demand stocks rose against the market trend. Li Ning (02331) led Hang Seng Index constituents with a 5.16% gain, closing at HK$15.48; Budweiser APAC (01876) rose 2.57% to HK$6.375; Hengan International (01044) gained 2.02% to HK$22.18; Midea Group (00300) advanced 1.42% to HK$100.10.
The three most actively traded stocks on the HSI, HSCCI, and HSTECH were Tencent, Alibaba, and Xiaomi, respectively. (ey)
