<p>The gold and silver washout triggered a small stock market crash in the Asia-Pacific region, with the South Korean stock market dropping 5.3% the hardest. The Hong Kong and China stock markets also struggled, with the Hang Seng Index plunging as much as 880 points, closing at 26,775 points, down 611 points or 2.2%, and a cumulative drop of 1,197 points over two days. The turnover was HKD 347.8 billion; northbound capital continued to record a net inflow of HKD 1.9 billion.</p>
<p>In the A-share market, the Shanghai Composite Index closed at 4,015 points, down 102 points or 2.5%; the Shenzhen Component Index reported 13,824 points, down 381 points or 2.7%, both indices hitting new lows in nearly a month. The ChiNext Index reported 3,264 points, down 82 points or 2.5%.</p>
<p>International gold prices have plummeted for several days, with blue-chip Zijin Mining (2899) falling 5.6% to HKD 39.56. Precious metal prices also dropped sharply, and other resource stocks were sold off, with Jiangxi Copper (358) down 8.6% to HKD 43.36; Aluminum Corporation of China (2600) down 6.6% to HKD 12.94; China Hongqiao (1378) down 3.5% to HKD 34.86.</p>
<p>China's electric vehicle deliveries in January fell, with BYD (1211) plummeting 6.9% to close at HKD 91, making it the worst-performing blue-chip stock.</p>
<p>The three major Chinese telecom operators expect that the increase in value-added tax on telecom services this year will impact revenue and profits. China Unicom (762) fell 6.3% to HKD 7.45; China Telecom (728) down 5% to HKD 5.11; China Mobile (941) down 2.3% to HKD 78.</p>
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<p>The Hang Seng Index opened 289 points lower this morning, and the decline continued to widen, dropping as much as 666 points to a low of 26,721 points. It closed at noon down 656 points or 2.4%, at 26,730 points, falling below the 27,000 mark, with a half-day turnover of HKD 178.124 billion. The Tech Index fell 210 points or 3.68% to 5,507 points.</p>
<h2>China Unicom fell nearly 9% in the blue-chip sector</h2>
<p>Among blue-chip stocks, Alibaba (9988) fell over 3%, while BYD (1211) plummeted 7.8% and AIA (1299) dropped 2.3%, being the three main stocks dragging down the Hang Seng Index. In terms of stock price fluctuations, China Unicom (762) had the worst performance, down 8.8%, while China Telecom (728) also fell 7.6%. Zijin Mining (2899) and Sunny Optical (2382) dropped 6.6% and 5.4%, respectively.</p>
<p>On the news front, the value-added tax on telecom services in mainland China will be raised from 6% to 9%. In addition to the sharp declines in Unicom and China Telecom, China Mobile (941) also fell 2.88%.</p>
<p>On the other hand, tech stocks collectively declined, with Baidu (9888) down 3.6%; Alibaba (9988) down 3.25%; Xiaomi (1810) down 2.99%; Meituan (3690) down 2.67%; JD.com (9618) down 1.6%; Tencent (700) down 1.32%.</p>
<h2>Automotive stocks collectively weakened, XPeng down 9%</h2>
<p>Automobile stocks also collectively weakened, with XPeng (9868) experiencing a monthly delivery drop of over 40%, and its stock price fell by 9%; Nio (9866), Li Auto (2015), and Leapmotor (9863) also reported lower delivery numbers compared to last month, with stock prices dropping by 1.47%, 3.65%, and 5.09% respectively.</p>
<p>Affected by the decline in gold prices, gold-related stocks fell, with Shandong Gold (1787) dropping 10.62% to HKD 39.56; Chifeng Jilong Gold Mining (6693) fell by 9.52%; and Zijin Mining Group (2259) decreased by 5.4%.</p>
<p>However, gaming stocks rose against the trend, as Macau's January gaming revenue exceeded market expectations. Influenced by this positive news, Sands China (1928) rose by 3.82%, becoming the best-performing blue chip; MGM China (2282) increased by 0.56%; and Galaxy Entertainment (027) rose by 0.75%.</p>
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<p>The Hong Kong stock market started February facing a volatile external environment, with gold and silver prices plummeting last week and the U.S. military deploying near Iran, both affecting market sentiment. Last week, the Hang Seng Index futures briefly fell back to the edge of 27,000 points. Market analysts believe that the bullish trend in Hong Kong stocks remains unchanged, and the external situation may not continue to impact sentiment, expecting the Hang Seng Index to find support around the 27,000 point level.</p>
<h2>Tech stocks generally decline, Alibaba drops nearly 3%</h2>
<p>The Hang Seng Index opened 289 points lower this morning, reporting at 27,097 points. Tech stocks generally fell, with Alibaba (9988) down 2.7%; Tencent (700) down 1.3%; Meituan (3690) down 0.7%; JD.com (9618) down 0.4%; and Baidu (9888) down 1.8%.</p>
<h2>Telecom service VAT increase, China Mobile drops over 2%</h2>
<p>The three major telecom operators in mainland China announced that starting this year, the scope of the telecom service VAT will be adjusted, with the corresponding VAT rate increased from 6% to 9%, which is expected to impact revenue and profits; China Mobile (941) opened down over 2%; China Unicom (762) and China Telecom (728) fell by 7% and 6.3% respectively.</p>
<p>Related article: The three major Chinese telecom operators increase telecom service VAT to 9%, expected to impact revenue and profits.</p>
<h2>Gold prices further decline, Lingbao Gold drops 14%</h2>
<p>Gold and silver prices further declined, with gold prices dipping to as low as USD 4,584, currently reported at USD 4,680, down over 4%; silver prices also fell to as low as USD 78.5, currently reported at USD 82.5, down over 3%; related stocks continued to decline, with Zijin (2899) down 10%; its subsidiary Zijin Mining International (2259) down 8%; Lingbao Gold (3330) down 14%; Shandong Gold (1787) down 11%; Chifeng Jilong Gold Mining (6693) down 9.8%; and China Silver (815) also down over 4%.</p>
<p>In addition, several Chinese electric vehicle companies announced their January data, with Seres (9927) and Leapmotor (9863) maintaining rapid growth, with stock prices rising by 0.2% and falling by 1.5% respectively; Xiaomi (1810) saw a monthly delivery decrease of 20%, with its stock price down 0.85%; and leading company BYD (1211) also experienced a 30% drop in sales, with its stock price down 1.3%
Related articles: China's electric vehicle deliveries in January saw Seres and Leapmotor perform well, while Xiaomi's car sales dropped by 20% and BYD's sales fell by 30%.</p>
<h2>Nie Zhenbang: The Hong Kong stock market may fluctuate with the US dollar</h2>
<p>Nie Zhenbang, Chief Analyst at GaoGe Securities, stated that the Hang Seng Index surged sharply under significant trading volume recently, and a pullback is normal. In the short term, support may be found around the gap near 27,200 points. If it holds, it may test the 27,800 point level again. He mentioned that the sharp decline in gold and silver prices will mainly reflect on resource stocks like Zijin Mining (2899) in the Hong Kong market, but overall, there is no indication that funds need to sell Hong Kong stocks to cover positions, which is expected to have little impact on the broader market.</p>
<p>Regarding external influences, Nie believes that with the appointment of the more hawkish Kevin Warsh as the next chairman of the Federal Reserve, if there are no expectations for a significant rate cut following Trump, it may alleviate market concerns about the independence of the Federal Reserve. Recently, the US dollar has also seen a rebound, with some funds flowing out of Hong Kong stocks. He believes that the Hong Kong stock market may fluctuate with changes in the US dollar.</p>
<h2>Guo Sichih: A sharp rise followed by a sharp drop is normal</h2>
<p>Guo Sichih, Vice Chairman of the Hong Kong Stock Analysts Association, believes that the pullback after the surge in Hong Kong stocks is not a bad thing for the start of February, and he remains optimistic about the market outlook, expecting support at the 27,000 point level. He pointed out that whether it is Hong Kong stocks, US stocks, or gold, &#34;a sharp rise followed by a sharp drop is normal.&#34; The current trend is that the upward momentum has not ended, and he believes that the market will gradually move upward. Currently, Hong Kong stocks still favor the financial, insurance, and resource sectors, while technology stocks can be &#34;bought slowly as they stabilize.&#34;</p>
<p>This week's economic data will focus on Friday's US non-farm payrolls for January, with the market expecting an increase to 670,000 jobs and an unemployment rate holding at 4.4%. Additionally, the Caixin China Manufacturing Purchasing Managers' Index (PMI) for January will be released today</p>

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<p>The Hang Seng Index closed down 611 points today, reporting at 26,775 points, falling below the 27,000-point mark. The Asia-Pacific stock markets generally declined, with the South Korean stock market experiencing the largest drop of 5.3%. BYD's stock price plummeted by 6.9%, making it the worst-performing blue-chip stock. Resource stocks generally fell, with Zijin Mining down 5.6% and Jiangxi Copper down 8.6%. In the A-share market, the Shanghai Composite Index dropped 102 points, and the Shenzhen Component Index fell 381 points, both hitting new lows in nearly a month. The market turnover was 347.8 billion yuan, with a net inflow of 1.9 billion yuan from the north</p>

- The Asia-Pacific markets experienced turmoil, with the South Korean market plunging 5.3%, while the Hang Seng Index dropped 611 points or 2.2%, closing at 26,775.  
- The declines were exacerbated by plummeting gold and silver prices, impacting resource stocks, including Zijin Mining which fell 5.6%.  
- Chinese telecom companies face a tax hike on value-added services, leading to significant stock declines, and the market anticipates support around the 27,000 point level for the Hang Seng Index.

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The Hang Seng Index fell by 611 points, losing the 27,000 mark. BYD dropped by 7%, resource stocks were sold off, while gaming stocks rose against the trend | Hong Kong stock market closing