Market Overview
▪ As of March 4th, Beijing time, the three major Hong Kong stock indices generally fell, and none have reached new highs since February 23rd.
▪ The Hang Seng Index fell about 2.10%, closing at 25,226.96 points, with upward momentum temporarily paused.
▪ The Hang Seng Tech Index fell about 1.34%, closing at 4,811.34 points, showing weak performance.
▪ The China Enterprises Index fell about 1.73%, closing at 8,460.04 points; it has not broken through the recent high and is currently also in a correction phase.
Sector Performance
▪ Retailers: Currently, the sector is in a downward trend, affected by performance pressures and management changes, with cautious capital sentiment. Alibaba -W fell 3.49%, with a transaction volume of HKD 7.897 billion; changes in the management of its core AI business have caused short-term execution uncertainty, suppressing sentiment, but user engagement data remains strong. JD.com -SW fell 3.14%, with a transaction volume of HKD 709 million; the market is focused on its upcoming Q4 2025 earnings report, with broker expectations of profit pressure, and investors are paying attention to retail and logistics margin guidance. Miniso fell 2.46%, with a transaction volume of HKD 54.2117 million; the company's continued buybacks convey management confidence, providing some support for the stock price in a volatile market, but the scale is relatively moderate. Overall, trading activity in the sector is concentrated among leaders, with weaker capital participation in non-core targets.
▪ Internet Content and Information: Currently, the sector is weakening, with regulatory uncertainties and potential spin-off expectations intertwining, leading to a decline in risk appetite. Tencent Holdings fell 0.88%, with a transaction volume of HKD 5.101 billion; if overseas regulators require it to divest some gaming investments, it may affect asset composition and valuation, putting short-term pressure on sentiment. Kuaishou -W fell 2.16%, with a transaction volume of HKD 744 million; stricter governance on &#34;AI-modified&#34; videos may raise content review costs and suppress some supply, but it helps reduce regulatory risks. Baidu -SW fell 1.79%, with a transaction volume of HKD 491 million; sellers are focusing on the potential spin-off of Kunlun Chip and valuation premium expectations, which could become a potential catalyst for mid-term valuation reassessment. On the capital side, the sector leans towards high liquidity leaders, with event-driven impacts influencing short-term trading themes.
▪ Oil and Gas Exploration and Production: Currently, the sector has generally retreated, with oil price fluctuations resonating with corporate governance events, putting pressure on risk appetite. CNOOC fell 2.46%, with a transaction volume of HKD 3.526 billion; the stock price has increased elasticity due to oil price fluctuations caused by geopolitical factors and overseas policy statements. United Energy Group fell 5.68%, with a transaction volume of HKD 347 million; small-cap upstream companies are more sensitive to oil prices and capital flows, amplifying volatility. Zhonggang Petroleum fell 35.96%, with a transaction volume of HKD 427.924 billion; due to public condemnation by the Hong Kong Stock Exchange and improper disclosure related to the termination of significant asset leases, market trust has been damaged. Overall, risk aversion sentiment is rising, and sector allocation is becoming more conservative.
Macroeconomic Background
▪ As of the time of writing, the market focus is on macro and policy variables over the past month: expectations for Federal Reserve interest rate cuts, HIBOR and Hong Kong dollar exchange rate, RMB trends, net inflow from the north, policies from the Two Sessions, performance of leading tech companies, mainland PMI and real estate relief, Hong Kong CPI and retail, etc. These factors collectively influence risk appetite and capital flows, pushing the index into a correction and rebalancing near previous high levels.
Top 10 Market Turnover
▪ Alibaba -W (09988.HK) Latest transaction price 129.2 HKD, down 3.49%, turnover 7.897 billion
▪ Tencent Holdings (00700.HK) Latest transaction price 503.0 HKD, down 1.57%, turnover 6.101 billion
▪ China National Offshore Oil Corporation (00883.HK) Latest transaction price 26.62 HKD, down 3.47%, turnover 3.778 billion
▪ Xiaomi Group -W (01810.HK) Latest transaction price 31.90 HKD, up 1.01%, turnover 3.215 billion
▪ Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869.HK) Latest transaction price 145.5 HKD, down 6.14%, turnover 2.269 billion
▪ Meituan-W (03690.HK) Latest transaction price 73.9 HKD, down 2.25%, turnover 1.969 billion
▪ HSBC Holdings (00005.HK) Latest transaction price 130.5 HKD, down 3.54%, turnover 1.938 billion
▪ Ping An Insurance (02318.HK) Latest transaction price 63.2 HKD, down 4.14%, turnover 1.683 billion
▪ Semiconductor Manufacturing International Corporation (00981.HK) Latest transaction price 61.8 HKD, down 2.54%, turnover 1.523 billion
▪ PetroChina Company Limited (00857.HK) Latest transaction price 9.97 HKD, down 4.22%, turnover 1.494 billion

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The three major indices of the Hong Kong stock market weakened during the session, with the Hang Seng Index falling approximately 2.10% to 25,226.96 points, the Hang Seng TECH Index dropping about 1.34%, and the Hang Seng China Enterprises Index declining around 1.73%. In terms of sectors, retailers, internet content and information, as well as oil and gas exploration and production generally declined. Among the leading stocks, Alibaba -W fell 3.49%, JD.com -SW dropped 3.14%; Tencent Holdings decreased 0.88%, Kuaishou -W fell 2.16%, and Baidu -SW declined 1.79%; in the oil and gas sector, China National Offshore Oil Corporation fell 2.46%, United Energy Group dropped 5.68%, and CNOOC (China National Offshore Oil Corporation) fell 35.96%

- On March 4, the Hong Kong stock market experienced a decline, with the Hang Seng Index falling approximately 2.10% to 25,226.96 points, indicating a pause in upward momentum.  
- Major sectors like retail have shown downward trends due to performance pressures, while the macroeconomic focus remains on variables such as U.S. Federal Reserve rate cut expectations and local economic indicators.  
- Notable stocks include Alibaba, which dropped 3.49%, and Tencent, which fell 1.57%, amidst cautious investor sentiment and uncertainties in their operational management.

Market Heartbeat

BABA-W

JD-SW

MNSO

TENCENT

KUAISHOU-W

BIDU-SW

CNOOC

UNITEDENERGY GP

CHK OIL

XIAOMI-W

YOFC

Hang Seng TECH Index

Hang Seng China Enterprises Index

Hang Seng Index

TRACKER FUND

HSTECH ETF

CSOP HS TECH

HSCEI ETF

Hong Kong stock market intraday | The Hang Seng Index fell by about 2.10%, technology and oil & gas sectors weakened, Alibaba -W dropped by 3.49%