Hong Kong Stock Market Closing (09.26) | Hang Seng Index fell 1.35% as Trump's tariffs pressured pharmaceutical stocks; Xiaomi Corporation-W dropped 8% after the conference

According to Zhitong Finance APP, Hong Kong stocks weakened today, with the three major indices significantly expanding their declines in the afternoon. Among them, the Hang Seng Index performed the worst, dropping over 3% at one point in the closing session. By the end of trading, the Hang Seng Index fell 1.35% or 356.48 points, closing at 26,128.2 points, with a total turnover of HKD 32.3674 billion; the Hang Seng China Enterprises Index fell 1.49%, closing at 9,303.1 points; the Hang Seng Tech Index fell 2.89%, closing at 6,195.11 points. For the week, the Hang Seng Index accumulated a decline of 1.57%, the China Enterprises Index accumulated a decline of 1.79%, and the Hang Seng Tech Index accumulated a decline of 1.58%.

Everbright Securities pointed out that with the Federal Reserve entering a rate-cutting cycle, Hong Kong stocks may continue to fluctuate upward in the future. The overall profitability of Hong Kong stocks is relatively strong, while assets in sectors such as the internet, new consumption, and innovative pharmaceuticals are relatively scarce. In addition, although Hong Kong stocks have risen for several consecutive months, the overall valuation remains low, and the long-term cost-performance ratio is still high. With the continuous development of the AI industry trend and the backdrop of the Federal Reserve's rate-cutting cycle, the Hong Kong stock market may continue to fluctuate upward in the future.

Blue Chip Performance

Xiaomi Corporation-W (01810) led the decline among blue chips. By the end of trading, it fell 8.07%, closing at HKD 54.65, with a turnover of HKD 23.347 billion, dragging down the Hang Seng Index by 137.07 points. On the evening of September 25, the new Xiaomi 17 series smartphones were launched, with a starting price of RMB 4,499; the Xiaomi 17 Pro series smartphones starting at RMB 4,999; and the Xiaomi 17 Pro Max series smartphones starting at RMB 5,999. In addition, Lei Jun mentioned that chip development is essential for Xiaomi's success, stating that self-developed mobile SoCs must be pursued for at least 10 years with an investment of at least RMB 50 billion.

Among other blue chips, Hang Seng Bank (00011) rose 3.23%, closing at HKD 118.2, contributing 4.36 points to the Hang Seng Index; Mengniu Dairy (02319) rose 2.87%, closing at HKD 14.71, contributing 2.05 points; SMIC (00981) fell 5.01%, closing at HKD 72.95, dragging down the Hang Seng Index by 27.22 points; BYD Electronics (00285) fell 4.87%, closing at HKD 39.5, dragging down the Hang Seng Index by 2.45 points.

Popular Sectors

On the market, large technology stocks all declined, with Xiaomi's new product launch causing a drop of over 8%, Alibaba falling over 3%, and Tencent dropping nearly 1%. Trump has once again wielded the tariff stick, imposing a 100% increase on patented and branded drugs, putting pressure on most pharmaceutical stocks today; chip stocks showed mixed trends, with Hua Hong Semiconductor rising over 3% to reach a new high, while SMIC fell over 5%; most sectors such as Apple concepts, robotics, and photovoltaics declined. On the other hand, wind power stocks rose against the trend, with Goldwind Technology continuing to rise over 4%; domestic banks and insurance stocks increased; dairy stocks, nuclear power stocks, and gaming stocks generally performed well.

1. Pharmaceutical stocks generally under pressure. By the end of trading, Genscript Biotech Corporation-B (01672) fell 10.17%, closing at HKD 10.34; Weiya Biotechnology (01873) fell 5.86%, closing at HKD 2.41; Tigermed (03347) fell 5.1%, closing at HKD 44.66; Rongchang Biologics (09995) fell 4.67%, closing at HKD 102 On September 25th, local time, U.S. President Trump announced that starting October 1st, the U.S. will implement a new round of high tariffs on various imported products, including a 100% tariff on pharmaceutical products of any brand or patent. Trump stated that the drug tariffs do not apply to companies that build factories in the U.S., defining these factories as "under construction" or "in the ground." Notably, this year, Trump has repeatedly introduced policies targeting the pharmaceutical industry, with "lowering drug prices" and "supply chain reshoring" being two major themes. However, some analysts believe that Trump's pharmaceutical tariffs will have limited substantive impact on innovative drug stocks in Hong Kong, more so a sentiment shock.

2. Wind power stocks rise against the trend. China High-Speed Transmission (00658) rose 5.45% to HKD 1.74; Goldwind Technology (02208) rose 4.13% to HKD 13.36; Datang Renewable Power (01798) rose 2.29% to HKD 2.68; Longyuan Power (00916) rose 1.68% to HKD 7.87.

Morgan Stanley pointed out that after nearly three years of a downward cycle, China's wind power value chain has successfully achieved a reversal of internal competition through industry self-discipline, realizing a turnaround in prices and overall profitability by early 2025. The investment bank expects domestic wind power installation demand to remain resilient and is optimistic about investment opportunities in key component suppliers and submarine cable companies. The report shows that after experiencing a difficult period from 2022 to 2024, the Chinese wind power industry has successfully reversed the vicious competition situation through internal self-regulation mechanisms. Morgan Stanley expects that during the "14th Five-Year Plan" period, the average annual new installed capacity will exceed 110GW, reaching about 120GW during 2028-2030.

3. Nuclear power stocks rise today. As of the close, China National Nuclear Corporation International (02302) rose 8.91% to HKD 4.28; China General Nuclear Power Corporation (01164) rose 5.23% to HKD 3.22.

A recent report from JP Morgan reveals an increasingly tense market reality: on one side, explosive demand driven by the nuclear energy revival and AI revolution, and on the other side, production cuts by major producers and supply bottlenecks caused by geopolitical issues. Since the beginning of this year, the spot and futures prices of uranium have risen by about 5%. Behind the price increase is the reduction in output by major global producers such as Kazatomprom and Cameco, while China's rapid nuclear power construction and the enormous electricity demand brought by AI data centers are driving strong demand growth.

Popular volatile stocks

1. Xinjiang Xinxin Mining (03833) surges on increased volume, closing up 32.43% at HKD 2.45.

Xinjiang Xinxin Mining announced that to promote the company's sustainable and stable development and to facilitate sustainable growth in revenue and shareholder returns, the board approved on September 25, 2025, to initiate the work related to issuing A-shares and listing on a Chinese securities exchange. The company will appoint Shenwan Hongyuan Securities Underwriting and Sponsorship Co., Ltd. as the pre-listing advisory institution for the proposed issuance of A-shares 2. Jiali International (01050) rose in the afternoon, closing up 33.33% at HKD 2.48.

Jiali International announced at noon that it has been included in NVIDIA's list of qualified suppliers for server chassis and cabinet components, as well as the recommended supplier list. In addition, the group is also working to deliver more prototype products to NVIDIA in the coming months to support its artificial intelligence server platform and data center deployment.

3. Boleton (01333) was strong throughout the day, closing up 20.2% at HKD 46.18.

Boleton announced that it has recently signed a strategic cooperation agreement with Mingyang Mining. It is reported that the parties will establish a long-term strategic partnership in the field of autonomous transportation in mines, conduct in-depth cooperation, promote the application of electric mining trucks and autonomous driving systems, and jointly improve operational efficiency and safety levels in mining areas.

4. XPeng-W (09868) rose against the market trend, closing up 5.03% at HKD 90.8.

On September 26, XPeng announced its official entry into the markets of Switzerland, Austria, Hungary, Slovenia, and Croatia. The company has reached an official cooperation agreement with Hedin Group, planning to gradually launch the 2025 XPeng G6 and 2025 XPeng G9 in Switzerland, with the XPeng P7+ expected to be launched in the first half of 2026.

5. Huahong Semiconductor (01347) hit a new high again, closing up 3.02% at HKD 68.25.

Goldman Sachs recently pointed out that due to the increase in global mature process capacity and the slowdown in end-market growth, the average selling price of Huahong's products has been on a downward trend since the first quarter of 2023. However, supported by a capacity utilization rate exceeding 100% from the third quarter of 2024 to the second quarter of 2025, Huahong has begun price negotiations with customers, which is expected to be reflected in the third quarter of 2025 performance