HK Stocks Close (Nov 12) | HSI Falls 1.26%, Barely Holds 24,000; Domestic GPU Duo Rises Against Trend; Alibaba-W Leads Blue-Chip Decline

Zhitong Finance APP learned that Hong Kong's three major indices accelerated their decline in the afternoon, with the Hang Seng Index barely holding the 24,000 level as investors assessed the impact of the leadership crisis at Nvidia. At close, the Hang Seng Index fell 1.26% or 307.37 points to 24,008.55, with full-day turnover reaching HK$202.652 billion; the Hang Seng China Enterprises Index fell 1.40% to 8,056.76; and the Hang Seng Tech Index fell 2.36% to 3,931.93.

Huatai Securities believes that looking ahead, earnings expectations for HK stocks were revised down by 2.4% over the past four weeks. With the probability of a Federal Reserve rate hike in December still around 75%, coupled with the peak unlocking of restricted shares in December for HK stocks, it is not advisable to continue chasing high-beta companies. The HK market may enter a phase driven by alpha. In terms of technology, there is internal divergence in HK hardware; while domestic semiconductors rebounded, southbound funds continued to reduce holdings, meaning the window for trend-based long positions still requires further waiting.

Blue-Chip Performance

Alibaba-W (09988) led the decline among blue chips. At close, it fell 6.76% to HK$93.8, with turnover of HK$18.735 billion. Alibaba formally proposed spinning off T-Head for a separate listing in Hong Kong, aiming to increase the contribution of self-used computing power from over 10% to 40%-50%, with an estimated shipment of about 700,000 GPUs by 2027. Bank of America Securities viewed the spin-off as a positive catalyst but emphasized that investors would only assign an independent valuation if there is evidence of strong revenue growth, regulatory progress, and favorable transaction terms.

Regarding other blue chips, Hua Hong Semiconductor (01347) rose 2.46% to HK$77; CNOOC (00883) rose 0.53% to HK$22.84; CMOC Group (03993) fell 4.27% to HK$12.11; and Tencent Holdings (00700) fell 2.64% to HK$398.8.

Hot Sectors

In terms of market performance, capital clearly moved out of computing hardware and into pharmaceuticals and defensive sectors. Domestic GPUs strengthened against the trend, with Iluvatar CoreX rising 8.85% and Biren Technology rising 5.64%. The filing for the T-Head spin-off provided a revaluation anchor for domestic computing power targets. The optical communication chain gave back afternoon gains, with YOFC falling 6.24%. Gold stocks declined as gold prices lost the $4,000 mark, with Shandong Gold falling 5.46%. The probability of a December rate hike climbed after US October inflation data exceeded expectations. Some pharmaceutical stocks rose, with Zai Lab up nearly 3% and WuXi AppTec up 2.44%.

Domestic GPU Duo Rises Against Trend. At close, Iluvatar CoreX (09903) rose 8.85% to HK$78.7; Biren Technology (06082) rose 5.64% to HK$22.48.

News that Nvidia's board intends to remove CEO Jensen Huang continued to disturb the market, with reports stating the board would meet as early as Wednesday local time to decide his fate. Analysts pointed out that if Nvidia faces a management vacuum, its product delivery schedule could be affected, which is precisely the window for accelerating the realization of expectations for domestic computing power substitution. Additionally, Alibaba announced it has submitted an application to the HKEX for the separate listing of T-Head. The filing for the T-Head spin-off is expected to provide a revaluation anchor for domestic computing power targets.

Gold Stocks Decline Collectively. At close, Zijin Gold International (02259) fell 10.35% to HK$126.5; Shandong Gold (01787) fell 5.46% to HK$17.85; and Zijin Mining (02899) fell 3.46% to HK$27.94.

After the release of US October inflation data, the probability of a 50 basis point rate hike by the Federal Reserve next month surged significantly. The CME FedWatch Tool showed that traders expect a 100% probability of a Fed rate hike in December, with a 12.7% probability of a 50 basis point hike. Fed Governor Waller stated that under these circumstances, the December FOMC meeting should consider a 50 basis point hike. International gold prices fell below the $4,000 mark again. CITIC Futures noted that gold will remain volatile in the short term, and sustained rebounds require a easing of rate hike expectations. Watch for subsequent inflation data, Fed statements, and progress in US-Iran negotiations.

MSCI Announces Index Adjustments, Related Stocks Weak. At close, Far East Horizon (03360) fell 6.98% to HK$5.265; Giant Biogene (02367) fell 3.94% to HK$20.46; C&D International Group (01908) fell 3.47% to HK$13.34; and China National Building Material (03323) fell 3.18% to HK$2.74.

On November 12, Beijing time, MSCI announced the results of its November 2026 semi-annual index review. All adjustments will take effect after the close on November 30, 2026. Among them, the MSCI China Index removed 38 stocks, including C&D International Group, China National Building Material, Far East Horizon, and Ganfeng Lithium. Additionally, Sands China Ltd. was removed from the MSCI Hong Kong Index.

Some Pharmaceutical Stocks Rise. At close, Zai Lab (09688) rose 2.74% to HK$21.02; WuXi AppTec (02359) rose 2.44% to HK$201.4; Hansoh Pharma (03692) rose 1.69% to HK$34.94; and BeiGene (06160) rose 1.59% to HK$255.8.

Industrial Securities pointed out that "innovation + internationalization" remains the core theme for pharmaceuticals in 2026, with Q3 reports verifying faster growth in profits for innovative drugs and the industry chain. In Q3 2026, the net profit attributable to shareholders of A-share innovative drug indices grew by 51.70% year-on-year, while revenue and net profit attributable to shareholders of the CRO index grew by 33.58% and 85.87%, respectively. Kaiyuan Securities stated that global biomedical financing and investment are booming, AI drug discovery is gradually bringing new incremental growth, and the ramp-up of blockbuster drugs like weight-loss medications is accelerating orders for many companies in the sector. Performance acceleration is expected in 2027, offering many investment opportunities.

Notable Movers

OneMicro Technology (02065) Surges on First Day. At close, it rose 38.18% to HK$13.68.

OneMicro Technology listed on the Main Board of the HKEX today, with an issue price of HK$9.9, raising approximately HK$710 million. According to Frost & Sullivan, based on 2025 revenue, the company is the third-largest provider of intelligent mobile robot solutions, with a market share of about 4.2%, and the largest provider of single-modal robot solutions in China, with a market share of 2.2%.

New Hehua (02206) Continues to Rise. At close, it rose 26.09% to HK$87.

New Hehua is a core supplier of large-scale Chinese herbal medicine slices in China, owning two major categories: ordinary Chinese herbal medicine slices and toxic slices, totaling more than 770 types and over 4,900 products. It has more than 1,000 customers domestically, including hospitals, medical institutions, and large chain pharmacies. Based on sales revenue of Chinese herbal medicine slice products in 2025, the company ranks second in the industry nationwide.

Transsion Holdings (02636) Included in Stock Connect. At close, it rose 22.47% to HK$46.44.

Transsion Holdings became a Stock Connect target starting today, allowing direct allocation by southbound funds. Caitong Securities' research report pointed out that the company's core markets focus on emerging markets such as Africa and South Asia. The Christmas season at year-end drives a traditional consumption window in the fourth quarter. Channels generally stock up in advance and accompany this with holiday promotions to release terminal demand.

Link REIT (00823) Sees Slight Increase in Interim Distribution. At close, it rose 3.23% to HK$41.5.

Link REIT announced its interim results for the period ended September 30 this year at noon. The total distributable amount increased by 0.4% year-on-year to HK$3.295 billion, with a distribution per unit of 127.25 HK cents, an increase of nearly 0.3% year-on-year. Interim income reached HK$6.909 billion, a decrease of 1.6% year-on-year, mainly due to negative rental reversion rates in Hong Kong, reflecting the lagging recovery of essential consumer retail and the continuous evolution of online consumption models.

Baige Online (02672) Falls Despite Rumor Clarification. At close, it fell 10.61% to HK$36.56.

Baige Online crashed in late trading yesterday, closing down 72.08%. It issued a clarification announcement that evening, stating that several entities related to unauthorized financing platforms had used the company's name, brand logo, and stock code without authorization. The company, its controlling shareholders, and members have no equity, management, business cooperation, or fund flows with the aforementioned platforms. Reports have been filed with public security organs in Xiamen and Shenzhen, as well as local financial regulatory authorities.

CK Hutchison (00001) Suspends Watsons Spin-off. At close, it fell 3.81% to HK$69.35.

According to reports, CK Hutchison has suspended plans for the dual listing of Watsons in London and Hong Kong due to current market conditions. If the environment improves, it may restart the process next year. In addition to market sentiment, weak consumer demand in mainland China has also pressured this listing plan. Watsons originally planned to list in both places in the autumn of this year, raising about $2 billion, corresponding to a valuation of approximately $30 billion.