Market Overview
▪ The Hong Kong stock market experienced a volatile pullback by midday, with all three major indices collectively declining, and market sentiment remained cautious.
▪ As of midday, the Hang Seng Index reported 26,579 points, down 0.99%.
▪ The Hang Seng Tech Index reported 5,755.35 points at midday, down 1.15%.
▪ The National Enterprises Index closed at 9,142.86 points by midday, with a decline of 0.85%.
Sector Performance
▪ The retail sector showed an overall downward trend, with major leading stocks generally under pressure. Alibaba -W fell by 3.31% by midday, JD.com -SW dropped 1.23%, and Miniso declined by 0.94%. The sector exhibited a strong wait-and-see atmosphere, with insufficient trading activity, reflecting that the recovery pace of consumer scenarios was below expectations, leading to low market confidence and continued capital outflow.
▪ The internet content and information sector also saw a synchronized decline, with leading stock Tencent Holdings down 1.13%, Bilibili -W plummeting 7.69%, and Kuaishou -W falling 2.55%. This sector lacked recent positive news stimuli, with a clear cooling of capital preferences, rising risk aversion among investors, and major funds primarily focusing on reducing positions, lacking sustained catalysts in the short term.
▪ The hardware, storage, and peripherals sector continued its downward pattern, with Xiaomi Group -W down 1.89%, Lenovo Holdings down 2.20%, and Lenovo Group slightly down 0.34%. Overall, there are no positive catalyst messages within the industry, leading to continuous adjustments in the sector, significant capital outflows, and a divergence in the performance of leading stocks, making it difficult for large-scale capital to flow back in the short term.
Macroeconomic Background
▪ Recently, the macro environment of the Hong Kong stock market has been stable, with indicators such as retail, exports, and manufacturing PMI performing steadily. Investors are focusing on the impact of external economic and exchange rate fluctuations on corporate profits, as well as changes in policy direction and market liquidity conditions. In the short term, the stability of the macro environment provides some confidence support, but structural differentiation risks remain, with high valuation sectors facing more pronounced pressure.
Popular Stocks
▪ QUNABOX GROUP (917.HK) rose 19.67%, with a trading volume of HKD 477 million. The company announced on January 16 that it expects to turn a profit in the fiscal year 2025, with an estimated range of RMB 270 million to 330 million, a significant improvement compared to a net loss of RMB 1.663 billion in the fiscal year 2024. The profit forecast reflects the recovery of the main business and new revenue growth points, driving rapid capital inflow into stocks within the sector and stimulating investor sentiment.
▪ Baide International (2668.HK) rose 31.65%, with a trading volume of HKD 31.407 million. The company announced that it signed a memorandum of understanding with the main shareholder of a Tanzanian enterprise to acquire part or all of its equity, which owns an operational gold processing plant and is engaged in gold exploration and production projects; at the same time, the company proactively adjusted its board members to promote business transformation and group strategic upgrades. Driven by this news, capital flowed in densely, leading to significant price movements and new highs
▪ FULLSHARE (607.HK) surged 140.63%, with a trading volume of HKD 6.5365 million. On December 22, the company announced that the Nanjing Public Security Bureau officially ruled out any connection between the company and its executives with the case related to China High-Speed Transmission, eliminating concerns about criminal involvement and promoting the normalization of the company's operations. This news greatly boosted market confidence, attracting active capital involvement and significantly driving up the stock price. However, the company still faces certain risks of civil disputes in the future, with prominent characteristics of capital speculation.
▪ GOME Retail (493.HK) rose 26.67%, with a trading volume of HKD 8.5156 million. As of noon, the company had no major announcements or news, and the stock price was clearly driven by short-term capital.
▪ LUXSHARE Precision Industry (1745.HK) increased by 20.15%, with a trading volume of HKD 8.9290 million. On January 12, the company adjusted its management team and made internal job transfers aimed at optimizing operations and strengthening its core business. The management team adjustment was recognized by capital, and the market holds a positive expectation for the company's future performance improvement.
Market Trading Volume TOP10
▪ Alibaba -W (09988.HK) latest trading price HKD 160.70, down 3.31%, trading volume HKD 6.842 billion
▪ Tencent Holdings (00700.HK) latest trading price HKD 610.50, down 1.13%, trading volume HKD 4.366 billion
▪ Xiaomi Group -W (01810.HK) latest trading price HKD 36.40, down 1.89%, trading volume HKD 3.319 billion
▪ SMIC (00981.HK) latest trading price HKD 77.60, down 2.02%, trading volume HKD 2.705 billion
▪ Hua Hong Semiconductor (01347.HK) latest trading price HKD 102.20, down 4.31%, trading volume HKD 2.182 billion
▪ UBTECH (09880.HK) latest trading price HKD 142.90, up 7.28%, trading volume HKD 1.742 billion
▪ Pop Mart (09992.HK) latest trading price HKD 180.10, up 0.84%, trading volume HKD 1.621 billion
▪ Trip.com Group -S (09961.HK) latest trading price HKD 470.00, up 0.82%, trading volume HKD 1.560 billion
▪ Yangtze Optical Fibre and Cable (06869.HK) latest trading price HKD 53.35, up 5.64%, trading volume HKD 1.558 billion
▪ Meituan -W (03690.HK) latest trading price HKD 99.05, down 0.95%, trading volume HKD 1.497 billion

In the midday session, the three major indices of the Hong Kong stock market collectively weakened, with the Hang Seng Index and the Hang Seng Tech Index both retreating, indicating a decline in market risk appetite. Mainstream heavyweight sectors faced pressure across the board, with Alibaba, Tencent Holdings, and Xiaomi Group all experiencing significant declines. The macro environment remains stable, and investors continue to pay attention to external economic conditions and exchange rate fluctuations. Stocks related to themes such as QUNABOX GROUP and FULLSHARE saw significant intraday surges, with funds showing a differentiated flow towards event-driven stocks

Market Heartbeat

WINSHINESCI RTS

BABA-W

JD-SW

MNSO

TENCENT

BILIBILI-W

KUAISHOU-W

XIAOMI-W

LENOVO GROUP

LEGENDHOLDING

PAK TAK INT'L

GOME RETAIL

LVJI TECH

SMIC

QUNABOX GROUP

FULLSHARE

Hong Kong Stock Market Midday Review | The three major indices experienced a pullback during the session, with the Hang Seng Index down 0.99%. Blue-chip stocks generally faced pressure, while small-cap stocks QUNABOX GROUP and Baide International led the gains