"The Diary of Zhong" Hong Kong stocks fell for two consecutive days, gold sector rebounds

"Diary of Zhong" November 5, Hong Kong weather: Sunny. Hong Kong fish tank: Down. National stock market: Up. U.S. stocks fell on Tuesday (4th), and panic sentiment spread to the Asia-Pacific stock markets, with Japanese stocks dropping over 2% and South Korean stocks even triggering a circuit breaker. After Hong Kong stocks fell below the 26,000 mark yesterday, they opened 250 points lower this morning, and the decline once expanded to over 400 points. However, driven by a rebound in A-shares, the market stabilized later, with the Hang Seng Index closing at 25,935, down 16 points or less than 0.1%, marking a two-day decline, with the main board turnover exceeding 238.8 billion yuan. \* Shanghai Composite Index rose 0.2% on reduced volume, smart grid concept strengthened * The Shanghai and Shenzhen stock markets opened low and rose collectively today, with the Shanghai Composite Index up 0.23%, closing at 3,969.25 points, the Shenzhen Component Index up 0.37%, and the ChiNext Index up 1.03%. Trading volume continued to shrink, with a total trading amount of 1.87 trillion yuan in both markets, a decrease of 2.3% compared to the previous trading day. In terms of data, RatingDog/S&P Global jointly announced that China's service sector Purchasing Managers' Index (PMI) fell further to 52.6 in October, the lowest level in three months. The composite PMI for October dropped to 51.8, down from the 15-month high of 52.5 set last month, also marking a three-month low. The manufacturing PMI for China in October, released on Monday (3rd) by RatingDog, fell to 50.6, weaker than market expectations. China Securities Regulatory Commission Chairman Wu Qing recently emphasized again the "stability maintenance" tone of governance, stating that the stability of China's capital market is the foundation for better market functionality and is closely related to the interests of billions of investors, as well as social expectations and confidence. It is essential to always prioritize risk prevention, adhere to bottom-line thinking and extreme thinking, and strive to promote the stable and healthy development of the capital market. \* Gold prices rebound, gold sector recovers, Hong Kong builds gold trading center * The strengthening U.S. dollar dragged down spot gold prices for several consecutive days, with gold prices falling over 1.5% on Tuesday (4th), reaching the lowest point since October 30. However, due to bargain hunting and risk aversion in the financial markets, gold prices rebounded today. Gold mining stocks and gold jewelry stocks also turned from decline to rise, with Zijin Mining (02899) up 2.4%, ZHAOJIN MINING (01818) up 1.8%, and Chifeng Jilong Gold (06693) up 1.3%; Laopuhuangjin (06181) rebounded over 3%, Luk Fook Holdings (00590) up 2.3%, and Chow Tai Fook (01929) up 1.4%. Goldman Sachs and Morgan Stanley, among other Wall Street giants, warned that U.S. stocks may face a correction. Data analytics company Palantir's third-quarter performance exceeded expectations and raised its full-year revenue forecast, but this did not prevent its stock price from plummeting, triggering market concerns about the bursting of the artificial intelligence (AI) investment bubble. The U.S. stock market fell the previous night, and panic sentiment spread to the Asia-Pacific stock markets, with Japanese and South Korean stock markets plunging. Ironically, the panic pushed gold prices to stop falling and rebound, with spot gold rising 0.9% to $3,965.49 per ounce In addition, reports indicate that the Industrial and Commercial Bank of China (01398) plans to establish a precious metals vault at Hong Kong Airport and expand its gold trading team to help Hong Kong build a global gold trading and clearing center. This move aligns with Hong Kong's strategy to increase gold storage to 2,000 tons and establish a central clearing system, further strengthening the influence of the Shanghai Gold Exchange.

Media reports, citing informed sources, reveal that ICBC's Hong Kong branch has leased space for the vault at Hong Kong Airport and plans to complete the preparations for the vault in the coming months. \* Trading volume and IPO surge, HKEX achieves record high performance in Q3 *

HKEX (00388) closed down 0.47% today, reporting HKD 423.6. Its latest performance report shows that in the first three quarters of this year, the average daily trading amounts for the Shanghai-Shenzhen Stock Connect and Hong Kong Stock Connect reached RMB 206.4 billion and RMB 125.9 billion, respectively, representing year-on-year increases of 67% and 229%, both hitting a nine-month high. A total of 69 companies went public in the first three quarters, raising a total of RMB 188.3 billion, more than three times that of the first three quarters of 2024.

HKEX stated that the strong demand for global capital diversification, coupled with the attractiveness of Chinese assets, continues to drive international capital inflow into the Hong Kong securities market. In addition, the performance of the new stock market remains strong, especially with the arrival of the second-largest scale of new stock fundraising globally during the quarter. As of September 30, there were as many as 297 new stock listing applications being processed.

According to statistics from Ryan Capital, in the past 24 months, 58 brokerage firms participated in the sponsorship of 172 newly listed companies (excluding one that transferred from GEM to the main board), among which 34 were Chinese brokerage firms, accounting for nearly 60%. China International Capital Corporation ranked first in the number of sponsorships with 50, with a participation rate of 29.1%; CITIC Securities ranked second with 36, with a participation rate of 20.9%.

Chinese brokerage stocks showed mixed performance, with CITIC Securities (06030) up 0.34%, China International Capital Corporation (03908) up 1.2%, and China Merchants Securities (06099) up 1%; CITIC Construction Investment Securities (06066) fell nearly 1%, and China Galaxy Securities (06881) slightly dropped by nearly 0.1%. In the first three quarters, the investment banking business of brokerage firms showed differentiation and warmth during the adjustment, with 42 listed brokerage firms with comparable data achieving a total net income of RMB 25.151 billion in investment banking business, a year-on-year increase of 23.46%, of which 27 brokerage firms saw year-on-year revenue growth, accounting for nearly 60%. \* Editor's Note: This article is for reference only and does not constitute an offer, solicitation, invitation, inducement, or any representation or establishment of any proposal or recommendation of any kind or form. Readers are advised to use their independent thinking ability to make their own investment decisions. If any losses arise from related suggestions, it has nothing to do with "Economic News," the editor, or the author