The Market Review: Hang Seng Index Falls Below 26,000; Alibaba, JD.com, and POP MART Weaken

The external stock market is down, and the Hang Seng Index today (4th) retreated, falling below the 26,000 mark. U.S. artificial intelligence-related stocks rose, with the Dow Jones and Nasdaq each dropping 0.5% and rising 0.5% respectively overnight. At the time of writing, the yield on U.S. two-year bonds fell to 3.584%, and the yield on U.S. ten-year bonds dropped to 4.091%, while the U.S. dollar index rose to 99.91. The latest Dow futures fell by 362 points or 0.81%, and Nasdaq futures dropped by 340 points or 1.3%. The Shanghai Composite Index fell by 16 points or 0.41% to close at 3,960 points, while the Shenzhen Component Index dropped by 1.7%. The total trading volume in the Shanghai and Shenzhen markets was 1.95 trillion yuan.

Hong Kong stocks fluctuated downwards, with the Hang Seng Index opening down 10 points, rising by 133 points to a high of 26,291 points in the morning session, and later dropping by 246 points to a low of 25,911 points in the afternoon. It closed down 205 points or 0.8% at 25,952 points; the Hang Seng China Enterprises Index fell by 85 points or 0.9% to close at 9,173 points; the Hang Seng Tech Index dropped by 104 points or 1.8% to close at 5,818 points. The total trading volume for the day was 239.986 billion yuan. The total trading volume of northbound trading was 100.097 billion yuan, while southbound funds had a net inflow of 9.832 billion yuan today (net inflow of 5.472 billion yuan on the previous trading day).

Southern Hang Seng Technology (03033.HK) fell by 1.8%, with a trading volume of 13.292 billion yuan and a short selling amount of 6.359 billion yuan (short selling ratio of 47.844%). The Tracker Fund of Hong Kong (02800.HK) declined by 0.8% to close at 26.04 yuan, with a trading volume of 11.973 billion yuan. POP MART (09992.HK) dropped nearly 4.1% to close at 217.4 yuan, with a trading volume of 3.912 billion yuan. The short selling amount for this stock today was 0.888 billion yuan, with a short selling ratio of 22.697%.

【POP MART weak, Alibaba and JD.com drop】

Tech stocks performed mixed, with Alibaba-W (09988.HK) falling 2.6% to close at 159 yuan, with a trading volume of 14.35 billion yuan. JD-SW (09618.HK) dropped nearly 3%, Xiaomi-W (01810.HK) retreated 2.9% to close at 43.42 yuan, and Meituan-W (03690.HK) fell 2.3% to close at 99.9 yuan. Tencent (00700.HK) rose nearly 0.2% to close at 629 yuan, while Baidu-SW (09888.HK) increased by nearly 2.9% to close at 121.9 yuan.

Credit Suisse published a channel survey on "Double Eleven" in mainland China, with key highlights including: (1) Merchants set expectations based on industry trends, and performance met targets; (2) Product return rates are expected to be flat or slightly higher than last year; (3) Different platforms have varying subsidy strategies; (4) The influence of top live-streaming hosts is on the decline; (5) Alibaba's AI-supported one-stop shopping platform is receiving significant attention. According to the bank's estimates, it is expected that GMV for Alibaba and JD.com during "Double Eleven" will grow by 10% and 6% year-on-year, respectively Futu Holdings pointed out that the key focus of the Double Eleven and e-commerce industry channel research includes: the performance of the first phase of "Double Eleven." Channel research shows that merchants' expectations align with industry trends, and current performance is satisfactory. Consumer spending depends on overall macro sentiment; in terms of categories: healthcare-related products (such as blood pressure monitors) performed better than expected; clothing benefited from cold weather; cosmetics remained stable; electronic products and home appliances grew steadily; the sports category performed well overall, but there were differences among brands; products related to the elderly were popular; the influence of top live-streaming hosts showed a downward trend due to the rise of merchants' self-broadcasting. In terms of platform GMV: the KPIs set by platforms and merchants align with industry trends, and overall performance is satisfactory. Douyin and Alibaba are in the spotlight, with the former benefiting from increased subsidy investments in GMV, while the latter profits from a one-stop shopping strategy.

【Stocks Decline, Gold Stocks Weaken】

Hong Kong stocks turned weak, with the rise and fall ratio of main board stocks at 14 to 36 (compared to 27 to 23 the previous day), with 1,484 declining stocks (a drop of 2.8%). Today, 28 constituent stocks of the Hang Seng Index rose, while 58 fell, with a rise and fall ratio of 32 to 66 (compared to 70 to 30 the previous day). The market recorded short selling of HKD 43.268 billion, accounting for 20.361% of the total turnover of shortable stocks of HKD 212.505 billion.

Gold stocks weakened, with China Gold International (02099.HK) down 3.7%, Zhaojin (01818.HK) down 4.3%, Shandong Gold (01787.HK) down 3.9%, and Zijin (02899.HK) and Lingbao (03330.HK) down 5.4% and 6.3%, respectively. Resource stocks Jiangxi Copper (00358.HK), Minmetals Resources (01208.HK), and Luoyang Molybdenum (03993.HK) fell by 4.3% to 5%. Jewelry stocks Chow Tai Fook (01929.HK) adjusted the prices of some gold products in mainland China in response to the new gold tax policy, with the stock price declining by 2.3% for the day. Laopuhuang (06181.HK) fell 4.2% to close at HKD 609