<p>The Hang Seng Index opened 17 points lower this morning and continued to decline, dropping as much as 298 points to a low of 25,787 points. It closed at 25,799 points near the half-day low, down 285 points or 1.1%, with a turnover of HKD 115.4 billion. The Tech Index reported 5,648 points at noon, down 13 points or 0.24%.</p>
<p>Among the heavyweight blue-chip stocks, HSBC (005) and China Construction Bank (939) fell 1.8% and 2.8%, respectively, along with Alibaba (9988) down 1.1%, which were the main contributors to the decline of the Hang Seng Index. In contrast, SMIC (981) and Ping An (2318) rose 3.2% and 2.2%, respectively, supporting the market.</p>
<h2>Innovent Biologics &#34;turned blue&#34; down over 8%</h2>
<p>In terms of stock price fluctuations, Baidu (9888) announced an assessment for the spin-off of Kunlun Chip, rising 3.3% at noon, making it the best-performing blue-chip. On the other hand, Innovent Biologics (1801), which officially &#34;turned blue&#34; today, plummeted 8.5%, while Pop Mart (9992), which just turned blue last round, also dropped over 8%.</p>
<p>In terms of news, Innovent Biologics announced last night that seven innovative products have successfully been included in the new version of the &#34;National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog (2025),&#34; including new indications for Tyvyt, IBI308, IBI101, IBI110, IBI112, IBI130, and IBI140. The new national medical insurance drug catalog will officially take effect on January 1, 2026.</p>
<p>Regarding Pop Mart, a Deutsche Bank report indicated that Labubu's production capacity has increased from 10 million units in the first half of the year to an average of 50 million units per month by the end of the year. However, for trendy toys that rely on &#34;cool&#34; and &#34;scarce&#34; attributes, popularity often signals a decline in heat. The bank also noted that the market premium for Labubu and other popular IPs has begun to fade, giving Pop Mart a &#34;hold&#34; rating with a target price of HKD 228.</p>
<p>In addition to Pop Mart, some new consumer concept stocks also saw declines, with Giant Bio (2367) down over 4%; Lao Pu Gold (6181) down 4%; Bruker (325) and Guoquan (2517) down 3.2% and 2.3%, respectively, while Mao Ge Ping (1318) fell 1.8%.</p>
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<p>The U.S. Federal Reserve will hold a two-day meeting starting this Tuesday, with the market expecting an 86% probability of a 0.25% rate cut, which will affect global capital flows. Hong Kong stocks consolidated last week with narrow fluctuations, with the Hang Seng Index &#34;losing and regaining&#34; the 100-day moving average. Analysts indicate that the market has already priced in the rate cut factors, and Hong Kong stocks will maintain narrow fluctuations in the range of 25,700 to 26,200 points in the short term.</p>
<p>The Hang Seng Index opened 17 points lower this morning, reporting 26,067 points. Tech stocks showed mixed developments, with Tencent (700) down 0.4%; Alibaba (9988) unchanged; Meituan (3690) down 0.7%; JD.com (9618) up 0.3%; and Xiaomi (1810) also up 0.3%.</p>
<h2>Baidu confirms proposed spin-off news</h2>
<p>Baidu (9888) stated that it noticed media reports last Friday (5th) about the group's plan to spin off its non-wholly-owned subsidiary Kunlun Core (Beijing) for independent listing. It confirmed yesterday that it is evaluating the proposed spin-off and listing, stating that if the proposed spin-off and listing proceed, it will require relevant regulatory approval procedures, and there is no guarantee that the proposed spin-off and listing will take place. The stock opened up over 3%, trading at HKD 125.6.</p>
<h2>Yu Ze of PICC Suspected of Serious Violations</h2>
<p>In individual stock news, China People's Insurance Group (1339) announced that according to information disclosed on December 6th by the Central Commission for Discipline Inspection and the National Supervisory Commission, Vice President Yu Ze is suspected of serious violations and is currently under disciplinary review and investigation. However, this matter does not affect the company's management operations. The stock opened up 1.6%, trading at HKD 7.12.</p>
<h2>Four New Stocks Included in Stock Connect</h2>
<p>Additionally, Innovent Biologics (1801) officially &#34;turned blue&#34; today, opening up 1%; on the same day, four new stocks were included in the Stock Connect, among which FWD Group (1828) opened down 0.5%; Aux Group (2580) fell 2%; Yunnan Baiyao (2591) rose 2%; and Chery Automobile (9973) dropped 0.8%.</p>
<p>Related article: Innovent Biologics turning blue today may &#34;trigger a curse&#34; as POP MART fell 30% in three months, with four new stocks debuting on the same day.</p>
<h2>Rate Cut Expectations Already Reflected in US Stocks</h2>
<p>This week, the market is focused on global central bank meetings and the monetary policy press conference held by Chairman Powell, which may indicate the trend of interest rates next year. Bowei Global Asset Management's Chief Financial Analyst Nie Zhenbang stated that if the Federal Reserve implements a 25 basis point rate cut as expected, since this expectation has already been reflected in the performance of US stocks, US tech stocks may face pressure, dragging down the performance of Hong Kong stocks. He further pointed out that the Nasdaq has recently shown a series of doji candlesticks, indicating intense competition between bulls and bears, and even if a rate cut occurs, the Hang Seng Index may struggle to show a significant upward trend.</p>
<h2>Hang Seng Index Faces Resistance at 26,300 Points</h2>
<p>uSMART Yingli Securities Research Department Executive Director Huang Deji also mentioned that the Hang Seng Index faces resistance at 26,300 points, and this situation may persist until the end of the year. He further noted that influenced by former President Trump, the next Federal Reserve Chairman is expected to be dovish, thus leaving room for future monetary policy rate cuts, providing a relatively loose external liquidity environment for the Hong Kong stock market.</p>
<p>Looking ahead to this week, in addition to the Federal Reserve announcing its interest rate decision on Thursday, Bank of Japan Governor Ueda Kazuo will attend a public event next Tuesday; Oracle will also announce its earnings next week. Additionally, important economic data such as the Consumer Price Index (CPI) and import and export figures will be released in mainland China</p>

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<p>The Hang Seng Index opened lower this morning and continued to decline, dropping 285 points or 1.1% to 25,799 points at midday. The Tech Index fell 13 points or 0.24%. Among the heavyweight blue-chip stocks, HSBC, CCB, and Alibaba dragged down the Hang Seng Index, while SMIC and Ping An rose against the trend. Innovent Biologics plummeted 8.5% after turning blue, and POP MART fell over 8%. The U.S. Federal Reserve will hold a meeting this week, with the market expecting a 0.25% rate cut probability as high as 86%</p>

- The Hang Seng Index opened lower, dropping 285 points or 1.1% to close at 25,799, with significant declines in major stocks like HSBC and China Construction Bank.  
- Meanwhile, Baidu's stock rose 3.3% following news of a proposed spin-off, while Innovent Biologics saw a sharp decline of over 8% after its new products were added to the national insurance list.  
- Market analysts expect the Hang Seng to remain volatile, fluctuating between 25,700 and 26,200 points, influenced by anticipated interest rate cuts from the U.S. Federal Reserve.

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The Hang Seng Index opened lower and continued to decline, dropping 285 points in half a day. New consumption concept stocks fell, with POP MART down over 8% | Hong Kong stock market opening