The Hang Seng Index fell by 334 points with reduced trading volume. Meituan continued to be sold off by Prosus, and China Life dropped by 4%, underperforming blue chips. Experts say the 100-day moving average has become crucial. | Hong Kong Stock Market Closing

The Hong Kong stock market welcomed its first day of decline in December, with the Hang Seng Index closing at 25,760 points, down 334 points, ending a two-day rise, and market turnover shrank to HKD 164.3 billion. Analysts indicate that if the Hang Seng Index holds above the 100-day moving average of about 25,800 points in the next two days, it is expected to hover in the range of 25,700 to 26,200 points in the short term; otherwise, it will form a downward trend.

The Hang Seng Index opened below the 26,000 mark, down 115 points at 25,980 points. The early decline narrowed to 98 points, but soon tested lower again, hitting a low of 25,724 points in the afternoon, down 371 points, and finally closing at 25,760 points, down 334 points. The China Enterprises Index closed at 9,028 points, down 154 points. The Tech Index fell for two consecutive days, closing at 5,534 points, down 89 points.

Meituan down 0.6% as Prosus remains bearish

Meituan (3690) continued to be sold off, closing at HKD 95.9, down 0.6%. South African shareholder Naspers' subsidiary Prosus disclosed that it has reduced its holdings in Meituan by approximately 39.1 million shares over the past four months, bringing its stake down to 218.4 million shares at the end of last month. Management also indicated that they would sell stocks with growth and strategic potential inferior to Tencent (700) to fund share buybacks, adding that Tencent will emerge as a winner in the artificial intelligence (AI) race. Tencent closed at HKD 611, down 1%.

Alibaba and Xiaomi slightly weaker

Other tech stocks also showed weakness, with Alibaba (9988) closing at HKD 153.6, down 2.2%; Xiaomi (1810) reported HKD 40.22, down 1.2%. Xiaomi Chairman Lei Jun posted on Weibo that the Xiaomi Auto App's vehicle selection feature has been opened to all users, with orders locked before midnight on the 26th of this month, and vehicles expected to be available for pickup by the end of the year. As for JD.com (9618), it closed at HKD 115.5, down 0.4%. However, WeRide (800) was established by "tech stock goddess" Cathie Wood's Ark Invest, closing at HKD 23.12, surging 4.8%, and has risen for five consecutive days, accumulating a gain of 15.6%.

Insurance stocks were under pressure, with China Pacific Insurance (2328) closing at HKD 17.04, down 4%; China Life (2628) reported HKD 26.32, down 3.6%, making it the worst-performing blue-chip stock; Sunshine Insurance (6963) reported HKD 3.5, down 2.8%; China Re (1339) reported HKD 6.67, down 2.6%.

In terms of blue-chip stocks, Techtronic Industries (669) closed at HKD 94.9, up 3.2%, making it the best-performing blue-chip stock. HSBC (005) reported HKD 111.2, up 0.2%, marking six consecutive days of gains.

Lemo Technology's debut earns HKD 1,450 per lot

Two new stocks debuted positively against the market trend, with Lemo Technology (2539), currently the fifth "oversubscribed king" of new stocks this year, opening 62% higher than its listing price of HKD 40. It reached a high of HKD 78.65, up 96.6%, before following the market down to fluctuate around HKD 50, ultimately closing at HKD 54.5, up 36.3%, earning HKD 1,450 per lot of 100 shares Jinyan Gaoling New Materials (2693), listed on the New Third Board, opened higher than the listing price of 7.3 yuan, rising as much as 34.2% to a high of 9.8 yuan. Before noon, it briefly "dipped," hitting a low of 7.25 yuan, and ultimately closed at 7.46 yuan, up 2.2%, with a profit of 80 yuan for a single lot of 500 shares.

Sir Nie: If it falls below 25,800 points, it will decline steadily

Nie Zhenbang, Chief Analyst at GaoGe Securities, stated that since April 14 of this year, the Hang Seng Index has only fallen below the 100-day moving average on April 16, November 21, and December 3, reflecting the strong support of the 100-day moving average. If it holds above the 100-day moving average, which is 25,800 points, in the next two days, it is expected to hover in the range of 25,700 to 26,200 points in the short term; otherwise, it will form a steady decline pattern, with the next support level at 25,000 to 25,200 points. He estimates that the market turnover will remain below 200 billion, so even if the market rebounds, it will be "insufficient."

The Hang Seng Index opened 114 points lower this morning and continued to perform weakly, falling as much as 304 points to a low of 25,791 points. As of noon, it reported 25,842 points, down 252 points or 0.97%, losing the 26,000-point mark again, with turnover becoming increasingly quiet at only 86 billion; in terms of the Tech Index, it reported 5,550 points at noon, down 73 points or 1.3%.

Chuangke and China Hongqiao are the best-performing blue chips

Among blue-chip stocks, Alibaba (9988) and Tencent (700) fell 2% and 1% respectively, along with NetEase (9999) which dropped 3.3%, being the main culprits dragging down the Hang Seng Index. In terms of stock price fluctuations, Chuangke Industrial (669) and China Hongqiao (1378) rose 3.4% and 2.9% respectively, making them the best-performing blue chips, while WH Group (288) also rose 1.9%.

On the other hand, the rising expectations of interest rate cuts in the United States stimulated gold and Bitcoin-related stocks to rise against the trend, with Zijin Mining International (2259) rising over 3%, Chifeng Jilong Gold Mining (6693) and Zhaojin Mining (1818) also rising 1.5% and 1.4% respectively; in terms of Bitcoin-related stocks, BlueFocus Communication Group (8267) surged 14%, Boyaa Interactive (434) rose over 3%, and New Fire Technology (1611) also rose 2%.

U.S. President Trump stated during a cabinet meeting at the White House on Tuesday that he would announce the new Federal Reserve Chairman early next year, hinting at the candidate being Hassett, which aligns with market expectations. This news stimulated rising expectations for interest rate cuts by the Federal Reserve, with the latest U.S. 10-year Treasury yield falling to 4.085%, and the U.S. dollar index also dropping to 99.26.

Bitcoin rises back to $91,000

The three major U.S. stock indices performed well on Tuesday, with the Dow Jones closing up 185 points or 0.39%, reporting 47,474 points; the S&P 500 rose 16 points or 0.25%, reporting 6,829 points; and the Nasdaq rose 137 points or 0.59%, reporting 23,413 points. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell 0.65% to 7,808 points In addition, the price of Bitcoin has rebounded significantly, surpassing the $90,000 mark, currently reported at $91,541.

Among the focus stocks, Amazon (AMZN) announced the official launch of its next-generation self-developed AI chip, Trainium3, which is the company's first 3nm process chip, with a maximum computing performance improvement of 4.4 times over the previous generation and energy efficiency improvement of 4 times. The memory bandwidth has also increased nearly 4 times, allowing for faster AI development while significantly reducing operational costs. The stock closed at $234.42 on Tuesday, up 0.23%.

In the Hong Kong stock market, the Hang Seng Index opened 114 points lower this morning, reporting 25,980 points. Tech stocks were generally weak, with Alibaba (9988) down 0.8%; Tencent (700) down 0.2%; Meituan (3690) unchanged; and Xiaomi (1810) also unchanged. As for JD.com (9618), its spinoff JD Industrial (7618) will open for subscription today, with its stock price down 0.3% at the market opening.

Lemo Technology's public offering oversubscribed 7,323 times

In other new stock news, Lemo Technology (2539) had its public offering oversubscribed approximately 7,323 times, with a 0.8% chance of winning a lot. The international placement was oversubscribed 5.78 times, opening this morning at HKD 64.8, up 62%.

Another new stock, Jinyan Gaoling New Materials (2693), had its public offering oversubscribed approximately 6,875 times, with a 0.03% chance of winning a lot. The international placement was oversubscribed 1.01 times, opening this morning at HKD 9.3, up 27%.

Longpan Technology signs long-term procurement agreement

In individual stock news, Longpan Technology (2465) announced that its holding subsidiary, Lithium Source Asia Pacific, has signed a long-term procurement agreement with Sunwoda Automotive Energy Technology (Thailand) Co., Ltd., expecting to sell 106,800 tons of lithium iron phosphate cathode materials to Sunwoda from 2026 to 2030, with a total contract sales amount estimated at about 4.5 to 5.5 billion RMB. The stock opened at HKD 15.81, up over 7%.

Regarding the northbound capital flow, there was a net purchase of Hong Kong stocks amounting to HKD 4.101 billion yesterday, with Meituan (3690), Xiaomi (1810), and Alibaba (9988) receiving net purchases of HKD 592 million, HKD 380 million, and HKD 357 million, respectively; while Tencent (700), SMIC (981), and China Life (2628) experienced net sales of HKD 381 million, HKD 76.27 million, and HKD 16.42 million, respectively