Market Overview
▪ Hong Kong stocks performed weakly during the session, with all three major indices declining. The Hang Seng Index fell by 2.12%, closing at 25,287.01 points; the Hang Seng China Enterprises Index dropped by 2.14%, closing at 8,947.83 points; the Hang Seng Tech Index saw a decline of 3.14%, closing at 5,399.74 points.
▪ As of the time of writing, there were 220 stocks rising, 1,418 stocks falling, and 1,089 stocks flat, with a significant number of declines, indicating an overall defensive stance among investors.
▪ Overall market funds are in a wait-and-see mode, mainstream sectors are under pressure, and short-term funds are inclined towards highly liquid leaders.
Sector Performance
▪ The retail sector weakened across the board, primarily due to persistently weak consumer demand, which was most evident. Leading stocks in the sector, such as Alibaba, fell by 4.07%, with a trading volume of HKD 7.607 billion; JD.com dropped by 2.38%, with a trading volume of HKD 394 million; Miniso fell by 1.94%, with a trading volume of HKD 102 million. There was a notable outflow of funds, with no significant short-term positive support.
▪ The hardware, storage, and peripherals sector saw a slight increase, with funds gaining attention against the trend. Xiaomi Group rose by 0.21%, with a trading volume of HKD 7.186 billion, highlighting the defensive attributes of funds and premium for leading stocks. Additionally, Xiaomi Group WR rose by 0.47%, while Lenovo Group fell by 2.37%. The performance of leaders was differentiated, with funds selectively flowing into top stocks.
▪ The internet content and information sector overall declined, affected by weakening advertising and traffic. Tencent Holdings fell by 1.69%, with a trading volume of HKD 3.774 billion; Kuaishou dropped by 3.23%; Baidu plummeted by 6.58%, with a trading volume of HKD 620 million. The sector faced pressure from funds, with short-term sentiment being weak.
Macroeconomic Background
▪ The Hong Kong stock market continues to focus on trade deficits and moderate inflation risks. In September, exports grew by 14.5% year-on-year, while imports increased by 11.5%, maintaining a high trade deficit. The composite CPI annual rate is 1.1%, with overall inflation pressure being controllable. The recovery in foreign trade data helps stabilize the macroeconomic fundamentals but has not immediately boosted the market.
Popular Stocks
▪ China Resources Power rose by 0.71%, with a trading volume of HKD 471 million, showing moderate fund attention.
▪ Gaode Holdings had a notable increase, rising by 9.84%, with a trading volume of HKD 9 million, becoming a strong stock today, although liquidity is limited.
▪ Shandong Molong fell by 4.18%, with a trading volume of HKD 48 million, showing relative pressure.
▪ Guofu Hydrogen Energy rose by 0.05%, with a trading volume of HKD 153 million, with limited price fluctuations.
▪ Haotian International Construction Investment rose by 4.27%, with a trading volume of HKD 52 million, showing significant differentiation within the sector.
Market Trading Volume TOP10
▪ Alibaba -W, down 4.07%, trading volume of HKD 76.05 billion, latest price HKD 148.50
▪ Xiaomi Group -W, up 0.16%, trading volume of HKD 71.85 billion, latest price HKD 37.76
▪ Tencent Holdings, down 1.77%, turnover of HKD 3.774 billion, latest price HKD 610.00
▪ SMIC, down 4.69%, turnover of HKD 2.269 billion, latest price HKD 70.05
▪ Hua Hong Semiconductor, down 5.45%, turnover of HKD 1.123 billion, latest price HKD 73.75
▪ Pop Mart, down 3.13%, turnover of HKD 1.112 billion, latest price HKD 195.10
▪ CATL, down 3.40%, turnover of HKD 956 million, latest price HKD 466.60
▪ Ping An Insurance, down 2.58%, turnover of HKD 952 million, latest price HKD 56.75
▪ Meituan-W, down 2.44%, turnover of HKD 912 million, latest price HKD 96.10
▪ XPeng-W, down 3.36%, turnover of HKD 869 million, latest price HKD 79.10

All three major Hong Kong stock indices fell, with the Hang Seng Tech Index leading the decline. The retail and internet content sectors were under pressure, with Alibaba dropping over 4%. Amid weak consumer demand, funds flowed into a few leading stocks in hardware and storage. The overall number of declining stocks far exceeded that of advancing stocks, reflecting an increase in risk-averse sentiment among investors. On the macro level, the recovery in foreign trade and moderate inflation provided some support, but there was a clear phase shift in sector performance

- The Hong Kong stock market showed weakness, with the Hang Seng Index falling 2.12% to 25,287.01 points, and a significant number of stocks declining.  
- Retail stocks were notably affected by weak consumer demand, with Alibaba down 4.07% and JD.com down 2.38%, while hardware and storage sectors saw slight gains.  
- The market remains cautious amid trade deficit concerns and moderate inflation risks, with September exports up 14.5% year-on-year, but failing to boost market sentiment immediately.

Market Heartbeat

Hang Seng Index

BABA-W

JD-SW

MNSO

XIAOMI-W

XIAOMI-WR

LENOVO GROUP

TENCENT

KUAISHOU-W

BIDU-SW

DZUG

GAODI HOLDINGS

SHANDONG MOLONG

GUOFUHEE

HAO TIAN INTL

SMIC

HUA HONG SEMI

Xiaomi Corporation

Alibaba

Hong Kong Stock Market Update | Hang Seng Index down 2.12%, technology sector under pressure, funds focus on Xiaomi and individual hardware leaders