Hong Kong stocks close｜Three major indices collectively rise, technology and retail perform strongly, ZTE surges 13.94% leading the hot spots

Market Overview

▪ On December 1st, the three major indices of the Hong Kong stock market rose collectively, with the Hang Seng Index up 0.67% at 26,033.26 points; the Hang Seng China Enterprises Index up 0.47% at 9,172.84 points; and the Hang Seng Tech Index up 0.82% at 5,644.76 points.

▪ As of the time of writing, there were 973 stocks rising, 905 stocks falling, and 843 stocks closing flat in the Hong Kong stock market, indicating an overall positive market sentiment. Major indices remained in the red, with funds leaning towards consumption and technology sectors.

▪ There was significant structural differentiation within the market, with investors' risk appetite increasing and active funds concentrated in technology, retail, and popular concept sectors.

Sector Performance

▪ The retail sector generally rose, driven by a recovery in consumer demand. Leading player Alibaba rose 2.24%, with a transaction volume of HKD 14.494 billion, the highest in the market, reflecting continued attention from major funds on core consumption. JD.com rose 0.52%, with a transaction volume of HKD 1.114 billion, showing improved investor confidence in mainstream platform consumption stocks. Miniso fell 0.82%, with relatively small transactions, as funds have not fully rotated to cover secondary retail leaders.

▪ The restaurant sector saw a slight overall increase, with recovering dining demand boosting leading performances. Haidilao rose 2.33%, with a transaction volume of HKD 412 million; Yum China rose 0.77%, with a transaction volume of HKD 257 million. Leading stocks rebounded moderately, with stable fund inflows. Meituan fell 2.88%, with a transaction volume of HKD 8.686 billion, as internal fluctuations within the sector increased, with some funds taking short-term profits.

▪ The hardware, storage, and peripherals sectors showed mixed performance, with significant fund divergence. Xiaomi Group fell 1.76%, with a transaction volume of HKD 7.861 billion, dominated by a wait-and-see sentiment. Lenovo Group rose 0.62%, with a transaction volume of HKD 553 million, with general fund attention. Overall, structural opportunities in the sector outweighed the overall sector trend, with major funds focusing more on leading valuations and event-driven factors.

Macroeconomic Background

▪ Recent data for the past month shows that the unemployment rate in October was 3.8%, and the CPI annual rate rose to 1.2%. Both import and export annual rates have rebounded, with the trade deficit narrowing to HKD 39.9 billion.

▪ Marginal economic improvement and moderate inflation have brought some confidence to the Hong Kong stock market. Funds are positioning for structural growth opportunities, but external volatility and the continued recovery of consumption still need to be observed, with investors maintaining a degree of caution.

Popular Stocks

▪ ZTE Corporation (763.HK) rose 13.94%, with the latest transaction price at HKD 35.80 and a transaction volume of HKD 3.760 billion. Driven by concentrated fund inflows, it became the most watched leader in the market for the day. The A-share Hang Seng Index closed up 0.67%, with ZTE rising about 14%, as funds continued to flow into the technology and communication sectors.

▪ Fibocom (638.HK) rose 14.55%, with a transaction volume of HKD 511 million. This stock showed significant volatility, with major funds chasing technology growth, becoming one of the stocks with the largest increase today ▪ CAPITAL REALM (204.HK) fell by 2.22%, with a trading volume of HKD 124 million. Market attention has decreased, with short-term capital outflows being the main trend.

▪ LOPAL TECH (2465.HK) fell by 4.52%, with a trading volume of HKD 173 million. In the context of a divergence in technology stocks, some capital is actively avoiding high-volatility varieties.

Market Trading Volume TOP10

▪ Alibaba-W (9988.HK) latest trading price HKD 154.90, up 2.24%, trading volume HKD 14.494 billion

▪ Meituan-W (3690.HK) latest trading price HKD 99.55, down 2.88%, trading volume HKD 8.686 billion

▪ Xiaomi Group-W (1810.HK) latest trading price HKD 40.30, down 1.76%, trading volume HKD 7.861 billion

▪ Tencent Holdings (700.HK) latest trading price HKD 619.50, up 1.31%, trading volume HKD 7.813 billion

▪ ZTE (763.HK) latest trading price HKD 35.80, up 13.94%, trading volume HKD 3.760 billion

▪ Pop Mart (9992.HK) latest trading price HKD 215.20, down 4.27%, trading volume HKD 3.212 billion

▪ Zijin Mining (2899.HK) latest trading price HKD 32.32, up 5.28%, trading volume HKD 2.728 billion

▪ SMIC (981.HK) latest trading price HKD 69.45, up 0.94%, trading volume HKD 2.532 billion

▪ China Construction Bank (939.HK) latest trading price HKD 8.15, down 0.24%, trading volume HKD 1.890 billion

▪ China Pacific Insurance (2328.HK) latest trading price HKD 17.18, down 2.72%, trading volume HKD 1.599 billion