The Hang Seng Index rises over 1%, with Alibaba, Baidu, and gold mining stocks bouncing back

Driven by the strong performance of Alibaba (09988.HK), Hong Kong stocks rose today. The market expects that the latest inflation data will not hinder the Federal Reserve's interest rate cut next week. The Dow Jones and Nasdaq both rose 1.4% and 0.7% respectively to reach new highs. At the time of writing, the yield on the US 2-year Treasury bond rose to 3.558%, and the yield on the US 10-year Treasury bond rose to 4.041%. The US dollar index rose to 97.66, while Dow futures fell 84 points or 0.2%, and Nasdaq futures fell 18 points or 0.08%. The Shanghai Composite Index fell 4 points or 0.12% to close at 3,870 points, the Shenzhen Component Index fell 0.4%, and the total trading volume of the Shanghai and Shenzhen markets was 2.52 trillion yuan. The People's Bank of China announced the August monetary data after the market closed, with M2 balance increasing by 8.8% year-on-year.

The Hang Seng Index opened 453 points higher, and later expanded its gains to 499 points, reaching a four-year high of 26,585 points. It closed up 301 points or 1.2% at 26,388 points; the National Index rose 104 points or 1.1% to close at 9,364 points; the Hang Seng Tech Index rose 100 points or 1.7% to close at 5,989 points. The total trading volume for the day was 320.734 billion yuan. The total trading volume of northbound trading was 157.992 billion yuan, while southbound funds had a net inflow of 7.331 billion yuan today (the previous day's net inflow was 18.989 billion yuan). Evergrande Property (06666.HK) saw its major shareholder's liquidator sign a confidentiality agreement for a potential share sale, and the stock resumed trading up 20.7%. WuXi AppTec-B (02617.HK) surged 77.1% to close at 192.5 yuan, with a trading volume of 2.613 billion yuan.

The Hang Seng Index rose a total of 970 points or 3.8% this week, the National Index rose a total of 307 points or 3.4% this week, and the Hang Seng Tech Index rose a total of 301.82 points or 5.3% this week. Southbound funds had a net inflow of 60.822 billion yuan this week (the previous week's net inflow was 33.06 billion yuan). The market anticipates that the US will start cutting interest rates this month, and the Hang Seng Index has repeatedly tested four-year highs this week.

【Hang Seng Index has support, Alibaba and Baidu rebound】

Alibaba priced its $3.2 billion zero-coupon convertible preferred notes (at 188.08 yuan per share), and the stock rose 5.4% to close at 151.1 yuan, with a trading volume of 25.932 billion yuan. It was reported that Alibaba and Baidu (09888.HK) are using their own chips to train artificial intelligence models, with Baidu rising 8.1% to close at 115.1 yuan, with a trading volume of 5.626 billion yuan. GDS Holdings (09698.HK) surged 15.7% to close at 38.82 yuan.

According to The Information, Alibaba and Baidu have begun using their own AI chips to train AI models. The media cited sources familiar with the matter, stating that Alibaba started using its chips to train smaller models earlier this year, utilizing the Zhenwu processing unit, while Baidu is still experimenting with its internally designed Kunlun P800 chip to upgrade its Ernie model 【Stocks Rise, Gold Mining Stocks Surge】

Hong Kong stocks showed a positive trend today, with the rise and fall ratio of main board stocks at 28 to 22 (compared to 26 to 23 yesterday). There were 1,166 rising stocks (up 3.1%), with 55 Hang Seng Index constituent stocks rising and 27 falling, resulting in a rise and fall ratio of 63 to 31 (compared to 44 to 43 yesterday). The market recorded short selling of HKD 44.18 billion today, accounting for 15.408% of the total turnover of shortable stocks at HKD 286.729 billion (compared to 14.872% yesterday).

Driven by expectations of a U.S. interest rate cut, gold mining stocks Lingbao (03330.HK) and Zhaojin (01818.HK) saw their prices rise by 7.1% and 4.4%, respectively. Commodity stocks Jiang Copper (00358.HK), WISCO (01208.HK), Hongqiao (01378.HK), and Chalco (02600.HK) rose between 5.4% and 7.3%