Market Overview
▪ The three major indices of the Hong Kong stock market closed lower today, with market sentiment becoming cautious.
▪ The Hang Seng Index closed at 26,923.62 points, down 0.28%, failing to continue the previous upward trend, slightly retreating from the recent peak set yesterday, hovering near the high level in the short term.
▪ The Hang Seng TECH Index closed at 5,828.35 points, with the decline expanding to 1.35%, indicating increased adjustment pressure.
▪ The Hang Seng China Enterprises Index closed at 9,266.86 points, down 0.52%.
Sector Performance
▪ The retail sector weakened overall today, affected by pressure from the technology sector, with increased defensive sentiment among investors. The leading Alibaba -W (9988.HK) closed down 2.60%, with a turnover of HKD 22.058 billion, becoming the main force behind the decline, reflecting risk aversion and downward pressure on earnings expectations. JD.com -SW (9618.HK) fell 0.69%, Miniso (9896.HK) dropped 0.31%, with liquidity in the sector weakening and investors showing clear wait-and-see sentiment.
▪ The internet content and information sector showed a mixed performance, with clear signs of fund repositioning. Tencent Holdings (700.HK) closed down 1.74%, with a turnover of HKD 16.373 billion, Kuaishou -W (1024.HK) fell 2.93%, while Baidu -SW (9888.HK) rose slightly by 0.76%. Overall, the sector's volatility resonated with the market's risk aversion theme, with accelerated shifts in hot spots, and some leaders still under pressure.
▪ The hotel, resort, and cruise sector led the decline, reflecting a decrease in market risk appetite. Trip.com Group -S (9961.HK) plummeted 19.23%, with a turnover of HKD 15.816 billion, becoming the leading stock in the overall decline, due to the company's investigation by the State Administration for Market Regulation for suspected monopolistic behavior. Trip.com's holding, Tongcheng Travel (780.HK), was affected and fell 8.24%, while China Travel Service (308.HK) rose 1.46%.
Macroeconomic Background
▪ The Hong Kong stock market has recently focused on economic recovery and corporate earnings expectations, with investor sentiment remaining cautious due to fluctuations in retail, exports, and manufacturing PMI.
▪ Foreign exchange reserves and inflation dynamics have also become key points of market attention, with capital flows and policy adjustments being major variables in the long-short game.
▪ In the macro environment, funds are increasingly leaning towards structural hot spots, with rising risk aversion leading to market fluctuations.
Popular Stocks
▪ Dongxing Pharmaceuticals -B (1875.HK) surged 67.60% today, with a turnover of HKD 172 million. The company received a comprehensive acquisition offer from WuXi AppTec at HKD 4 per share, leading to a significant rise after the stock resumed trading, reaching a new high since November 2021. The turnover significantly increased, with the market highly focused on the acquisition movement. If the transaction is completed, it is expected to optimize the company's capital structure and promote the development of innovative drug-related businesses.
▪ Haotian International Construction Investment (1341.HK) rose 15.32%, with a turnover of HKD 1.206 billion. Lacking clear positive drivers, market funds preferred high-volatility targets
▪ Shangshan Gold (1939.HK) rose by 53.75%, with a transaction amount of HKD 54.9048 million. The short-term performance of the stock is strongly correlated with gold prices, and the warming industry sentiment has led to capital inflows.
▪ JBB BUILDERS (1903.HK) rose by 48.95%, with a transaction amount of HKD 22.2068 million. The company has no significant recent fundamental news, and the capital's short-term speculative characteristics are prominent.
▪ Delai Construction (1546.HK) rose by 84.90%, with a transaction amount of HKD 9.9924 million. As a small-cap stock, its volatility is mainly driven by capital chasing. The company was suspended from trading this afternoon due to unusual stock price movements.
Market Transaction Amount TOP10
▪ Alibaba -W (09988.HK) latest transaction price HKD 164.6, down 2.60%, transaction amount HKD 22.058 billion
▪ Tencent Holdings (00700.HK) latest transaction price HKD 622.0, down 1.74%, transaction amount HKD 16.373 billion
▪ Trip.com Group -S (09961.HK) latest transaction price HKD 460.0, down 19.23%, transaction amount HKD 15.816 billion
▪ SMIC (00981.HK) latest transaction price HKD 77.35, up 1.84%, transaction amount HKD 5.574 billion
▪ Xiaomi Group -W (01810.HK) latest transaction price HKD 37.86, up 0.21%, transaction amount HKD 4.397 billion
▪ Ping An Insurance (02318.HK) latest transaction price HKD 69.55, up 1.24%, transaction amount HKD 3.995 billion
▪ Alibaba Health (00241.HK) latest transaction price HKD 7.17, down 7.84%, transaction amount HKD 3.975 billion
▪ Meituan -W (03690.HK) latest transaction price HKD 100.8, down 0.69%, transaction amount HKD 3.945 billion
▪ Jingtai Holdings (02228.HK) latest transaction price HKD 12.47, down 10.74%, transaction amount HKD 3.636 billion
▪ Zijin Mining (02899.HK) latest transaction price HKD 40.0, down 1.96%, transaction amount HKD 3.306 billion

The Hong Kong stock market closed today with the three major indices generally weakening. The Hang Seng Index and the Hang Seng TECH Index both slightly retreated from the previous trading day's highs, indicating a cautious market sentiment. The technology, retail, and hotel tourism sectors were under overall pressure, with Alibaba down 2.60%, Tencent Holdings down 1.74%, and Trip.com plunging 19.23%. Meanwhile, Dongyao Pharmaceutical's stock price surged against the trend due to a takeover bid, attracting significant investor attention. Overall, the market is facing a dual impact of earnings expectations and risk aversion, with significant short-term divergences and capital flowing towards structural hotspots

- The Hong Kong stock market indices experienced declines, with the Hang Seng Index closing at 26,923.62 points, down 0.28%.  
- Key sectors affected include retail and hospitality, with significant drops in major stocks like Ctrip Group, which fell 19.23% due to an antitrust investigation.  
- Overall, investors remain cautious amid economic recovery concerns and fluctuations in retail, export, and manufacturing indicators.

Market Heartbeat

Hang Seng TECH Index

BABA-W

JD-SW

MNSO

TENCENT

KUAISHOU-W

BIDU-SW

TONGCHENGTRAVEL

CHINA TRAVEL HK

HAO TIAN INTL

SHANGSHAN GOLD

JBB BUILDERS

THELLOY DEV

SMIC

XIAOMI-W

Trip.com

BIODLINK-B

TRIP.COM-S

Hong Kong stocks close | The Hang Seng TECH Index's decline widened to 1.35%, Trip.com Group plummeted 19.23%, the technology sector was generally under pressure, while the semiconductor sector strengthened against the trend