Hong Kong Stock Market Mid-Review | Hang Seng TECH Index rose 1.16%, Xiaomi Group led with a 4.60% increase, Alibaba had the highest trading volume, and the market broadly rose with a focus on technology consumption

Market Overview

▪ On November 25, all three major indices of the Hong Kong stock market rose, with the Hang Seng Index up 0.62% to 25,875.36 points; the Hang Seng China Enterprises Index up 0.75% to 9,147.97 points; and the Hang Seng TECH Index performing the best, up 1.16% to 5,609.71 points.

▪ In terms of market performance, 1,002 stocks rose, 659 stocks fell, and 1,064 stocks closed flat, reflecting overall active sentiment and prominent structural opportunities, with investors favoring booming sectors.

▪ Funds concentrated in core sectors such as technology and consumption, with some leading stocks significantly boosting index activity, indicating a rebound in market risk appetite.

Sector Performance

▪ The internet content and information sector showed volatility, with leading stocks experiencing mixed performance. Tencent Holdings fell 0.32%, with a turnover of HKD 5.278 billion. Baidu rose 3.22%, with a turnover of HKD 1.07 billion, gaining investor attention thanks to its Wenxin 5.0 large model. Kuaishou rose 2.55%, with a turnover of HKD 2.338 billion, as the market focused on the advancement of commercialization and traffic monetization. Overall, funds were reallocated within this sector, with cautious sentiment but some leading stocks still performing well.

▪ The retail sector rose overall, influenced by a recovery in consumer confidence and favorable policies. Alibaba rose 2.39%, with a turnover of HKD 12.289 billion, focusing on new trends in AI e-commerce, with the Qianwen APP stimulating new entry layouts, becoming a top choice for funds. Miniso rose 0.64%, with a turnover of HKD 0.056 billion, benefiting from the overall warming of consumption. JD.com slightly fell 0.44%. Funds showed structural inflows, concentrating on companies with performance elasticity and innovative transformations.

▪ The hardware, storage, and peripherals sector saw increased differentiation, with Xiaomi Group rising 4.60%, with a turnover of HKD 8.418 billion, becoming a market hotspot and driving funds towards the technology innovation sector. Lenovo Group rose 0.51%, with a turnover of HKD 0.660 billion. Lenovo Holdings fell 3.58%, indicating significant differentiation within the sector, with investors showing high divergence in growth expectations.

▪ The semiconductor manufacturers sector maintained an upward trend, with SMIC rising 0.88%, with a turnover of HKD 2.718 billion; Hua Hong Semiconductor rising 2.15%, with a turnover of HKD 1.540 billion; and InnoCare rising 0.93%, with a turnover of HKD 0.075 billion. Benefiting from resilient external demand and expectations for domestic substitution, the sector attracted incremental funds.

Macroeconomic Background

▪ The latest data shows that the Hong Kong stock market's exports grew by 14.5% year-on-year, imports grew by 11.5%, and overall trade maintained double-digit expansion, with a trade deficit of HKD 25.415 billion. Retail sales maintained positive year-on-year growth, and the M3 money supply grew by 4% year-on-year, with the macro environment supporting foreign trade momentum and signs of moderate recovery in domestic demand.

▪ Driven by active foreign trade and improved consumption, the overall market risk appetite has rebounded, providing structural support for core technology and consumption sectors, with investor confidence continuing to improve Popular Stocks

▪ Longpan Technology (2465.HK) rose by 18.51%, with a trading volume of HKD 548 million. The stock price surged significantly at high levels, driven by funds chasing technology growth attributes, with short-term market sentiment active and trading heat significantly amplified.

▪ Yangtze Optical Fibre and Cable (6869.HK) rose by 13.73%, with a trading volume of HKD 1.047 billion. The sector's prosperity improved, with continuous fund inflows, boosting industry outlook expectations and speculative enthusiasm.

▪ China Gas Holdings (1635.HK) rose by 8.14%, with a trading volume of HKD 274 million. Driven by favorable sector dynamics, funds engaged in short-term speculation, with high turnover rates reflecting active capital.

▪ China Shangcheng (2330.HK) rose by 3.64%, with a trading volume of HKD 21 million. Continuous strength reflects structural capital flows in the market, with growth expectations enhancing investment enthusiasm.

▪ Ganfeng Lithium (1772.HK) rose by 1.25%, with a trading volume of HKD 1.083 billion. The focus on the new energy sector remains strong, with sector rotation driving active trading.

Market Trading Volume TOP10

▪ Alibaba -W (9988.HK) latest trading price HKD 158.20, up 2.39%, trading volume HKD 12.289 billion

▪ Xiaomi Group -W (1810.HK) latest trading price HKD 40.44, up 4.60%, trading volume HKD 8.418 billion

▪ Tencent Holdings (700.HK) latest trading price HKD 622.50, down 0.32%, trading volume HKD 5.278 billion

▪ SMIC (981.HK) latest trading price HKD 68.65, up 0.88%, trading volume HKD 2.718 billion

▪ Kuaishou -W (1024.HK) latest trading price HKD 70.30, up 2.55%, trading volume HKD 2.338 billion

▪ Hua Hong Semiconductor (1347.HK) latest trading price HKD 71.15, up 2.15%, trading volume HKD 1.540 billion

▪ Meituan -W (3690.HK) latest trading price HKD 97.80, down 0.36%, trading volume HKD 1.540 billion

▪ UBTECH (9880.HK) latest trading price HKD 112.10, up 0.54%, trading volume HKD 1.536 billion

▪ AIA Group (1299.HK) latest trading price HKD 79.25, up 0.32%, trading volume HKD 1.179 billion

▪ China Hongqiao Group (1378.HK) latest trading price HKD 30.90, up 4.18%, trading volume HKD 1.122 billion