Hong Kong Stock Market Mid-Review | Three major indices all fell, Hang Seng Index dropped 1.1%, Baidu surged against the trend at noon, with significant sector differentiation

Market Overview ▪ As of noon on December 8, 2025, the Hang Seng Index opened lower and fluctuated, ultimately closing at 25,799.36 points, down 1.1%, failing to break through the recent high, with a noticeable pullback from the previous peak (December 5). ▪ The Hang Seng TECH Index closed at 5,648.98 points, down 0.24%. The index did not reach a new recent high, showing relatively better performance compared to the Hang Seng Index, with the latest peak also occurring on December 5. ▪ The China Enterprises Index closed at 9,092.52 points, retreating 1.15% during the day. Similarly, it did not refresh its recent high, with the last peak also on December 5. ▪ All three major Hong Kong stock indices fell collectively, putting short-term pressure on the overall market. The technical indicators have not broken through recent highs, and bullish sentiment has cooled, with future attention on trading volume and sector rotation changes. Sector Performance ▪ The retail sector showed mixed performance, with Alibaba down 1.10% and JD.com slightly down 0.17%. Short-term capital favored structurally strong stocks, with Miniso rising 2.32%, attracting some capital attention, indicating that industry funds are focusing on mid-cap growth stocks, presenting structural opportunities within the sector, while the overall trend remains cautious. ▪ The hardware, storage, and peripherals sector faced pressure, with leading company Xiaomi Group down 1.59%, dragging Lenovo Group and Lenovo Holdings down 1.20% and 1.48%, respectively. Mainstream companies within the sector generally retreated, showing a clear phenomenon of capital outflow, with short-term bullish momentum weakening. ▪ The internet content and information sector experienced significant volatility, with Tencent Holdings down 0.82% and Kuaishou down 1.16%, while Baidu rose 3.29%, driving sector differentiation against the trend, highlighting an increased willingness of funds to speculate on quality tech growth stocks, with capital flowing towards hot companies within the sector. Macroeconomic Background ▪ Hong Kong's retail sales volume continued to grow year-on-year, with the latest data reaching 5.3%, indicating a recovery in local demand, providing support for the consumption and manufacturing sectors. ▪ Exports and imports remained stable, and the unemployment rate stayed low, showing resilience in overall macroeconomic activity, which is expected to bring structural opportunities to the Hong Kong stock market. ▪ Increased confidence in consumption and manufacturing is likely to provide potential support for the market in the short term, but the pace of market rotation is accelerating, leading to cautious short-term sentiment among investors. Popular Stocks ▪ China Goldstone (1380.HK) rose 37.31%, with a trading volume of HKD 38.4902 million. Recently, An Junjie increased his holdings by 28.0899 million shares, raising his stake to 5.61%, reflecting confidence in the company's prospects. The company issued a clarification announcement, stating that it is unaware of any undisclosed significant information that could lead to fluctuations in stock price and trading volume. Influenced by the large increase in holdings and the clarification announcement, there was noticeable short-term speculation in the market, with capital concentrated in this small-cap stock. ▪ Xinneng Low Carbon (145.HK) rose 54.76%, with a trading volume of HKD 4.7542 million. Although there were no significant recent news disclosures, the high degree of capital involvement, combined with its low-price stock attributes, led to speculative trading driving the stock's leading gains ▪ Accor Holdings (3313.HK) rose 36.36%, with a transaction volume of HKD 3.0716 million. The company announced a new placement of 237 million new shares at a price below the market, expecting to raise HKD 25.12 million to repay debts and supplement liquidity. This financing measure is expected to improve the company's financial situation in the short term, leading to increased capital speculation and liquidity expectations. ▪ Lemo Technology (2539.HK) rose 16.56%, with a transaction volume of HKD 14.32 million. The company leads the market share in the mainland massage equipment sector, and its stock price surged significantly in a single day, attracting active capital due to future growth expectations in the industry. ▪ Jinglian Group (1751.HK) rose 18.18%, with a transaction volume of HKD 5.8617 million. Although there is no new public news, it has been favored by active capital during the trading session, leading to increased short-term volatility and evident speculative attributes of the capital. Market Transaction Volume TOP10 ▪ Alibaba -W (9988.HK) latest transaction price HKD 153.3, down 1.10%, transaction volume HKD 7.142 billion ▪ Xiaomi Group -W (1810.HK) latest transaction price HKD 42.1, down 1.59%, transaction volume HKD 6.859 billion ▪ Tencent Holdings (700.HK) latest transaction price HKD 605, down 0.82%, transaction volume HKD 3.725 billion ▪ Innovent Biologics (1801.HK) latest transaction price HKD 84.2, down 8.48%, transaction volume HKD 3.509 billion ▪ Pop Mart (9992.HK) latest transaction price HKD 201, down 8.22%, transaction volume HKD 3.383 billion ▪ SMIC (981.HK) latest transaction price HKD 71.95, up 3.15%, transaction volume HKD 3.063 billion ▪ Ping An Insurance (2318.HK) latest transaction price HKD 61.75, up 2.15%, transaction volume HKD 2.356 billion ▪ China Construction Bank (939.HK) latest transaction price HKD 7.76, down 2.76%, transaction volume HKD 2.085 billion ▪ Meituan -W (3690.HK) latest transaction price HKD 98.9, down 0.15%, transaction volume HKD 1.87 billion ▪ Baidu -SW (9888.HK) latest transaction price HKD 125.6, up 3.29%, transaction volume HKD 1.602 billion