The Hong Kong stock market's turnover fell to HKD 164.3 billion, with property and automotive stocks showing weakness

Market attention is focused on the growth momentum of the mainland economy, and Hong Kong stocks fell today. Boosted by the rise in Bitcoin prices and technology stocks, the Dow Jones Industrial Average rose 0.4% and the Nasdaq increased by 0.6% overnight. At the time of writing, the yield on the U.S. 2-year Treasury bond fell to 3.494%, the yield on the U.S. 10-year Treasury bond dropped to 4.079%, and the U.S. dollar index fell to 99.15. Dow futures rose by 100 points or 0.2%, and Nasdaq futures increased by 37 points or 0.15%. China's November RatingDog services PMI fell to 52.1 (down from 52.6 last month). The Shanghai Composite Index dropped 19 points or 0.5% to close at 3,878 points, while the Shenzhen Component Index fell by 0.78%. The total trading volume in the Shanghai and Shenzhen markets was 1.67 trillion yuan.

Hong Kong stocks declined, with the Hang Seng Index opening down 114 points and the decline widening to 370 points at 25,724 points. It closed down 334 points or 1.3% at 25,760 points; the Hang Seng China Enterprises Index fell 154 points or 1.7% to close at 9,028 points; the Hang Seng Tech Index dropped 89 points or 1.6% to close at 5,534 points. The total trading volume for the day shrank to 164.361 billion yuan, marking the second consecutive day of trading below 180 billion yuan. The total trading volume of northbound funds was 66.132 billion yuan, while southbound funds saw a net inflow of 2.279 billion yuan today (compared to a net inflow of 4.101 billion yuan on the previous trading day). The Tracker Fund of Hong Kong (02800.HK) fell 1.1% to close at 25.94 yuan, with a trading volume of 10.366 billion yuan. Hong Kong Exchanges and Clearing (00388.HK) dropped nearly 1.5% to close at 404.2 yuan, and China Life (02628.HK) fell 3.6% to close at 26.32 yuan. HSBC Holdings (00005.HK) appointed Mark Tucker as chairman, with the stock price rising nearly 0.2% to close at 111.2 yuan.

Chinese property stocks declined, with China Resources Land (01109.HK) falling 3.1%, Longfor Group (00960.HK) down 2.3%, and R&F Properties (02777.HK) receiving 77% creditor approval for its dollar bond restructuring, extending the final deadline. R&F's stock price fell 3.1% to close at 0.62 yuan. Fitch placed Vanke (02202.HK) on a negative rating watch, and Vanke's stock price fell by 3%.

【Chinese property stocks decline, Alibaba and NetEase weak】

Tech stocks turned bearish, with Alibaba (09988.HK) falling 2.2% to close at 153.6 yuan, with a trading volume of 8.332 billion yuan, and Tencent (00700.HK) down nearly 1%. NetEase (09999.HK) and Bilibili (09626.HK) saw their stock prices drop by 2.9% and 3%, respectively.

Meituan (03690.HK) saw its stock price fall 0.6% to close at 95.9 yuan, with a trading volume of 3.75 billion yuan. Tencent's major shareholder, South African media group Naspers, disclosed that as of the end of November, it held 218.4 million shares of Meituan, a decrease of 39.1 million shares since early July Prosus CEO Fabricio Bloisi stated that the funding for the unlimited repurchase plan comes not only from reducing its stake in Tencent (00700.HK) but also from selling underperforming investments. According to Prosus's interim report, the company reduced its stake in Meituan by USD 249 million from July to September and further sold USD 300 million worth of Meituan shares in October, totaling approximately USD 549 million in cash. The company did not disclose the number of shares involved in the reduction.

【Over 1,300 Stocks Decline, Automotive Stocks Weaken】

The Hong Kong stock market turned weaker, with a rise-and-fall ratio of 15 to 33 for main board stocks (compared to 23 to 24 the previous day). A total of 1,344 stocks fell (down 2.3%), with 16 Hang Seng Index constituent stocks rising and 71 falling, resulting in a rise-and-fall ratio of 18 to 81 (previous day 67 to 30). The market recorded short selling of HKD 25.112 billion today, accounting for 17.57% of the total turnover of shortable stocks at HKD 142.926 billion.

Automotive stocks faced downward pressure, with BYD (01211.HK) falling 1.9% to HKD 98.15, and Nio (09866.HK) and XPeng (09868.HK) dropping 3.3% and 4.3%, respectively. In the autonomous driving sector, Pony.ai (02026.HK), Hesai (02525.HK), and Horizon Robotics (09660.HK) fell between 2.4% and 3.2%.

UBS recently released a report indicating that several domestic car manufacturers announced their sales for November, which mostly remained flat or declined month-on-month. Theoretically, November is a peak season for the industry and should be driven by the pre-purchase effect ahead of the potential policy "rollback" in 2026. However, the market is showing more signs of weakness, intensifying concerns about the demand outlook for the domestic car market in 2026. The bank has become increasingly cautious about the industry's short-term outlook due to the faster-than-expected weakening of market demand and the increasing risk signals for 2026. In the long term, the bank remains optimistic about the advantages of Chinese car manufacturers in technological innovation, cost competitiveness, and global expansion, but short-term domestic demand is indeed concerning