{Economic Information Daily, 11th} Amid rising expectations of Federal Reserve rate hikes, with a 10% chance of a 0.5 percentage point rate hike in December, tech and biotech stocks weakened, dragging down the HSI by 204 points or 0.8% to 24,352, with main board turnover exceeding HK$83.8 billion. The Hang Seng China Enterprises Index closed at 8,199, down 65 points or 0.8%. The Hang Seng Tech Index fell 55 points or 1.4% to 4,028.
U.S. October Consumer Price Index (CPI) rose 0.4% month-on-month, higher than the market expectation of 0.3%, but slower than September's 0.6% increase. The core CPI, excluding food and energy prices, rose 0.3% month-on-month, also higher than the expected 0.2%, and unchanged from September's increase, indicating that core inflation remains somewhat sticky. With rising rate hike expectations, tech stocks declined collectively. Only five component stocks of the tech index rose today. Meituan (03690) dropped 3.51% to HK$72.85, BYD (01211) fell 3.2% to HK$69.65, NIO (09866) declined 3.17% to HK$25.62, Leapmotor (09863) dropped 3.09% to HK$31.98, Li Auto (02015) fell 2.88% to HK$48.9, and Bilibili (09626) declined 2.19% to HK$111.5.
Alibaba (09988) fell 0.79% to HK$100.8, holding above the HK$100 level during trading, with a total of 1,200 buy orders totaling 729,000 shares placed at the HK$100 level. Tencent (00700) dropped 1.2% to HK$412.8, marking its fourth consecutive day of decline with a cumulative drop of 4.09%. Xiaomi (01810) dipped 0.07% to HK$30.58.
AI hardware stocks rose along with overseas markets: Lenovo Group (00992) gained 1.1% to HK$19.32, SMIC (00981) rose 0.89% to HK$47.66, and Hua Hong Semiconductor (01347) increased 0.54% to HK$74.95.
AI company Anthropic plans to advance its IPO. According to the latest disclosed prospectus, the company intends to issue shares at $70 to $78 per share. Based on the midpoint of $74, if underwriters fully exercise the over-allotment option (green shoe mechanism), the net proceeds are expected to reach $9.37 billion, potentially surpassing the record previously set by SpaceX. Zhipu (02513) announced a HK$4 billion share buyback plan but fell 0.54% to HK$479.4. MiniMax (00100) declined 1.62% to HK$170.3.
Biotech index component stocks declined collectively: Zai Lab (09688) dropped 5.4% to HK$20.32, GenScript (01548) fell 4.02% to HK$32.46, WuXi AppTec (02359) declined 3.44% to HK$193.5, WuXi Biologics (02268) dropped 3.14% to HK$70.85, Ascentage Pharma (06855) fell 2.67% to HK$29.16, and Innovent Biologics (01801) declined 2.6% to HK$86.
Orient Overseas (00316) rose 2.26% against the market trend to HK$149.1. CATL (03750) gained 2.17% to HK$386.2.
The three most actively traded stocks on the HSI were Alibaba, Tencent, and Hua Hong Semiconductor. The top three on the China Enterprises Index were Alibaba, Tencent, and Xiaomi. The top three on the Tech Index were Zhipu, Alibaba, and Tencent. (ey)
U.S. October Consumer Price Index (CPI) rose 0.4% month-on-month, higher than the market expectation of 0.3%, but slower than September's 0.6% increase. The core CPI, excluding food and energy prices, rose 0.3% month-on-month, also higher than the expected 0.2%, and unchanged from September's increase, indicating that core inflation remains somewhat sticky. With rising rate hike expectations, tech stocks declined collectively. Only five component stocks of the tech index rose today. Meituan (03690) dropped 3.51% to HK$72.85, BYD (01211) fell 3.2% to HK$69.65, NIO (09866) declined 3.17% to HK$25.62, Leapmotor (09863) dropped 3.09% to HK$31.98, Li Auto (02015) fell 2.88% to HK$48.9, and Bilibili (09626) declined 2.19% to HK$111.5.
Alibaba (09988) fell 0.79% to HK$100.8, holding above the HK$100 level during trading, with a total of 1,200 buy orders totaling 729,000 shares placed at the HK$100 level. Tencent (00700) dropped 1.2% to HK$412.8, marking its fourth consecutive day of decline with a cumulative drop of 4.09%. Xiaomi (01810) dipped 0.07% to HK$30.58.
AI hardware stocks rose along with overseas markets: Lenovo Group (00992) gained 1.1% to HK$19.32, SMIC (00981) rose 0.89% to HK$47.66, and Hua Hong Semiconductor (01347) increased 0.54% to HK$74.95.
AI company Anthropic plans to advance its IPO. According to the latest disclosed prospectus, the company intends to issue shares at $70 to $78 per share. Based on the midpoint of $74, if underwriters fully exercise the over-allotment option (green shoe mechanism), the net proceeds are expected to reach $9.37 billion, potentially surpassing the record previously set by SpaceX. Zhipu (02513) announced a HK$4 billion share buyback plan but fell 0.54% to HK$479.4. MiniMax (00100) declined 1.62% to HK$170.3.
Biotech index component stocks declined collectively: Zai Lab (09688) dropped 5.4% to HK$20.32, GenScript (01548) fell 4.02% to HK$32.46, WuXi AppTec (02359) declined 3.44% to HK$193.5, WuXi Biologics (02268) dropped 3.14% to HK$70.85, Ascentage Pharma (06855) fell 2.67% to HK$29.16, and Innovent Biologics (01801) declined 2.6% to HK$86.
Orient Overseas (00316) rose 2.26% against the market trend to HK$149.1. CATL (03750) gained 2.17% to HK$386.2.
The three most actively traded stocks on the HSI were Alibaba, Tencent, and Hua Hong Semiconductor. The top three on the China Enterprises Index were Alibaba, Tencent, and Xiaomi. The top three on the Tech Index were Zhipu, Alibaba, and Tencent. (ey)
