The Hang Seng Index fell more than 400 points in the early session, with AIA and China Life each dropping over 4%. Mining and resource stocks were under pressure

The night before (4th), the three major U.S. stock indices were mixed. AMD (AMD.US) and Palantir (PLTR.US) plummeted, dragging down technology stocks, with the Nasdaq closing down 1.5%, the S&P 500 down 0.5%, and the Dow Jones up 0.5%. Amid escalating tensions in the Middle East, U.S. President Trump stated in an interview with NBC News on Wednesday that if Iran attempts to restart its nuclear program, the U.S. military will launch military strikes again. Spot gold retreated, currently reported at approximately $4,826.2 per ounce, down 2.8%.

Hong Kong stocks opened lower this morning (5th), with the Hang Seng Index opening down 219 points. The decline widened in the early market, dropping as much as 436 points to a low of 26,410 points, currently reported at 26,513 points, down 333 points or 1.2%, with a turnover of HKD 146.65 billion.

Weighted technology stocks were under pressure, with Kuaishou-W (01024.HK), Alibaba-W (09988.HK), and Tencent (00700.HK) each falling between 2.6% and 3%. Meituan-W (03690.HK) dropped 0.5%, reported at HKD 91.7, with a turnover of HKD 1.242 billion, having previously fallen to HKD 90.2, marking a nearly two-year low since March 2024. Baidu-SW (09888.HK) saw a relatively mild decline, currently reported at HKD 136.3, down 0.66%, with a turnover of HKD 760 million; Baidu announced plans to repurchase $5 billion in shares and is expected to declare dividends for the first time this year.

SMIC (00981.HK) and Hua Hong (01347.HK) continued to weaken, falling 3.3% and 5.6%, respectively.

Financial stocks dragged down the market, with AIA (01299.HK) currently reported at HKD 86.45, down 4.69%, with a turnover of HKD 1.336 billion. China Life (02628.HK) is currently reported at HKD 33.66, down 4.27%, with a turnover of HKD 1.518 billion. Ping An (02318.HK) is currently reported at HKD 69.85, down 3.05%, with a turnover of HKD 1.206 billion. Hong Kong Exchanges and Clearing (00388.HK) is currently reported at HKD 410.6, down 2.28%, with a turnover of HKD 1.308 billion. Recently strong HSBC (00005.HK) is currently reported at HKD 136.7, retreating 1.65%, with a turnover of HKD 990 million. Bank of China Hong Kong (02388.HK), China Construction Bank (00939.HK), and Industrial and Commercial Bank of China (01398.HK) fell slightly by 0.2% to 0.4%. China Merchants Bank (03968.HK) rose 1.6% against the trend, reported at HKD 48.24, with a turnover of HKD 497 million.

Metal prices fluctuated, putting pressure on mining and resource stocks. Zijin Mining (02899.HK) is currently reported at HKD 38.92, down 6.53%, the largest decline among blue chips, with a turnover of HKD 1.773 billion. The same group’s Zijin Gold International (02259.HK) is currently reported at HKD 199.4, down 7.51%, with a turnover of HKD 435 million. Jiangxi Copper (00358.HK) is currently reported at HKD 42.32, down 8.32%, with a turnover of HKD 622 million Hongqiao (01378.HK) is currently at HKD 34.06, down 4.91%, with a transaction volume of HKD 540 million. Luoyang Molybdenum (03993.HK) is currently at HKD 21.32, down 8.1%, with a transaction volume of HKD 689 million.

The "three oil giants" are relatively weak, with PetroChina (00857.HK) and Sinopec (00386.HK) each down about 2.9%, and CNOOC (00883.HK) down about 1%.

ZTO Express-W (02057.HK) rose 2.8% against the trend, currently at HKD 184.1, making it the blue-chip with the largest increase. The company expects its revenue to grow approximately 9.5% to 12.9% year-on-year last year, while gross profit is expected to decrease by about 8.5% to 11.4%. ZTO also announced plans to issue USD 1.5 billion convertible bonds with an annual interest rate of 0.925%. Citigroup has a slightly positive view on ZTO's issuance of CB, believing that the earnings forecast is generally in line with expectations