<p>The market generally expects Japan to raise interest rates by 0.25%, and there are reports indicating that the Bank of Japan may start selling ETF holdings as early as next month. The Nikkei 225 index fell 1.3% at closing, dragging down the performance of the Asia-Pacific stock markets. Additionally, China's November &#34;three drivers&#34; data fell short of market expectations, leading Hong Kong stocks to open lower on Monday and continue to decline, particularly in the technology sector, ultimately closing near the day's low at 25,628 points, down 347 points or 1.34%, marking the largest single-day drop in over three weeks. The total market turnover was HKD 204.2 billion, with northbound capital inflow of HKD 3.655 billion.</p>
<p>After opening 258 points lower, the Hang Seng Index narrowed its losses to 152 points in the early session, driven by gains in insurance stocks and some consumer stocks. However, as the Asia-Pacific stock markets generally weakened and technology stocks expanded their losses, the Hang Seng Index's decline widened to 367 points, ultimately closing near the day's low at 25,628 points, down 347 points. The Hang Seng China Enterprises Index closed at 8,917 points, down 161 points or 1.78%; the Tech Index underperformed the market, closing at 5,498 points, down 139 points or 2.48%.</p>
<h2>Most Chip Stocks Weaken, SMIC Drops Over 4%</h2>
<p>The performance of U.S. tech companies has reignited market concerns about the AI (Artificial Intelligence) bubble, leading AI-related tech stocks to lead the decline. Among tech stocks, Alibaba (9988) fell 3.6%, closing at HKD 148.6; Tencent (700) declined 2.1%, closing at HKD 603; Kuaishou (1024) dropped 4.4%, closing at HKD 64.45; Baidu (9888) decreased 5.8%, closing at HKD 118.7. Additionally, it is rumored that Meituan (3690) has decided to suspend its group buying business, with its stock price still falling 1.5%, closing at HKD 100.9.</p>
<p>Most chip stocks weakened, with SMIC (981) plummeting 4.4%, closing at HKD 64.7; Hua Hong Semiconductor (1347) fell 6.4%, closing at HKD 67.3; and Innovent Biologics (2577) dropped 9.8%, closing at HKD 72.9.</p>
<h2>Hansoh Pharmaceutical Drops Nearly 8%, Worst Among Blue Chips</h2>
<p>Mainland innovative pharmaceutical stocks collectively retreated, and related Hong Kong stocks also performed poorly. Hansoh Pharmaceutical (3692) fell 7.6%, closing at HKD 39.74, making it the worst-performing blue chip; Innovent Biologics (1801) dropped 4%, closing at HKD 81.75; China Biologic Products (1177) fell 4.4%, closing at HKD 6.5; WuXi Biologics (2269) declined 3.1%, closing at HKD 32.44.</p>
<p>Mainland retail data for November was disappointing, but the market anticipates that policies supporting domestic consumption may be introduced more quickly. Some consumer concept stocks rose against the trend, with Li Ning (2331) increasing 5.4%, closing at HKD 18.64, making it the best-performing blue chip; Shanghai Auntie (2589) surged 9.3%, closing at HKD 96; Bruker (325) rose 3.3%, closing at HKD 72.3; and Haidilao (6862) increased 1.3%, closing at HKD 14.6</p>
<h2>Gold Prices Rise, Zijin Gold International Up 8%</h2>
<p>International gold prices continue to rise, and gold stocks are favored. Zijin Mining (2899) rose 0.4%, closing at HKD 34.46; Zijin Gold International (2259) surged 7.8%, closing at HKD 158.4; Zhaojin Mining (1818) rose 1.9%, closing at HKD 29.96; Shandong Gold (1787) increased 0.8%, closing at HKD 34.44.</p>
<p>In individual stocks, Vanke (2202) failed to pass all three proposals for the extension of its HKD 2 billion bond. Vanke's stock price fell 5.2%, closing at HKD 3.49. HSBC (005) announced that the proposed consideration for the privatization plan of Hang Seng (011) would not be increased under any circumstances, and the proposal will be voted on January 8 next year; the two stocks showed mixed trends, with HSBC down 0.9%, closing at HKD 116.2; Hang Seng rose 0.3%, closing at HKD 153.5. Additionally, Ping An (2318) received favorable ratings from major institutions like CITIC, with its stock price rising 2.45%, closing at HKD 65.25, marking a four-day increase.</p>
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<p>The Hang Seng Index opened 258 points lower this morning, and although the decline narrowed to 152 points at one point, reaching a high of 25,824 points, it ultimately struggled to stay above the 20-day moving average (25,802 points). As of noon, it reported 25,737 points, down 238 points or 0.92%, with a transaction amount of HKD 108.2 billion. The Tech Index reported 5,537 points at noon, down 100 points or 1.79%.</p>
<h2>CICC Expects Life Insurance Industry to Enter Golden Period Again</h2>
<p>Among blue-chip stocks, Alibaba (9988) and Tencent (700) fell 2.7% and 1.5%, respectively, along with Xiaomi (1810) down 2.3%, being the three main stocks dragging down the performance of the Hang Seng Index; in contrast, insurance stocks received support, with AIA (1299) and Ping An (2318) both rising over 2%, and China Life (2628) also up 1.2%.</p>
<p>On the news front, the National Financial Regulatory Administration recently issued a notice on adjusting the risk factors related to insurance companies, strengthening the policy orientation to encourage long-term patient capital, boosting market sentiment. Additionally, CICC expects the life insurance industry to enter another golden development period by 2026, with a more positive development trend on the liability side, shifting the industry investment logic from &#34;seeking revaluation repair of existing business&#34; back to &#34;giving growth capability valuation premium,&#34; and anticipates that Ping An will lead the next round of valuation repair in the industry, raising the H-share target price from HKD 71 to HKD 99.4, maintaining an &#34;outperform industry&#34; rating.</p>
<h2>Li Ning Opens First Dragon Store Globally</h2>
<p>In terms of stock price fluctuations, Li Ning (2331) showed a stronger upward trend, rising over 4.9% in half a day, making it the best-performing blue-chip stock, while China Mobile (881) and New Oriental (9901) also rose 2.8% and 2.7%, respectively. Notably, Li Ning held the grand opening of its first dragon store globally with the theme &#34;Dragon Glory Unleashed&#34; yesterday (14th) in the landmark shopping area of Sanlitun Taikoo Li in Beijing, along with the official launch ceremony of its new Glory Gold Standard product series. Furthermore, Citigroup also expects Li Ning's revenue to grow 0%, 4%, and 8% year-on-year from 2025 to 2027, with net profit growing 18%, 11%, and 17% year-on-year, raising the target price from HKD 18.1 to HKD 20.6, maintaining a &#34;buy&#34; rating
In addition to Li Ning, several other sports goods stocks also saw upward movement, with Yue Yuen (551) rising over 6%; 361 Degrees (1361) up 3.2%; and Xtep International (1368) also increasing by 2.4%.</p>
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<p>The market generally expects the Bank of Japan to raise interest rates by a quarter point this Friday (19th), and is concerned whether this will lead to a repeat of the yen liquidation crisis from last August, becoming a key factor in the direction of global stock markets. Some analysts pointed out that the chance of a financial crisis triggered by Japan's interest rate hike is low, predicting that the Hang Seng Index will remain fluctuating between 25,000 and 26,300 points.</p>
<h2>Jack Ma Meets with Rwandan President</h2>
<p>The Hang Seng Index opened 258 points lower this morning, reporting at 25,718 points. Tech stocks generally declined, with Alibaba (9988) founder Jack Ma appearing in Kigali, the capital of Rwanda, alongside Yahoo co-founder Jerry Yang yesterday to participate in the &#34;African Business Heroes&#34; event, where he met with Rwandan President Paul Kagame; the stock opened at HKD 150.8, down 2.1%.</p>
<p>Among other tech stocks, Tencent (700) fell 1.6%; Meituan (3690) dropped 0.8%; JD.com (9618) and Xiaomi (1810) decreased by 0.6% and 1.5%, respectively; Baidu (9888) fell over 3%.</p>
<h2>HSBC's Privatization of Hang Seng Will Not Increase Offer Price</h2>
<p>On the other hand, HSBC (005) announced that the proposed consideration for the privatization of Hang Seng (011) is set at HKD 155 per share, which will not be increased under any circumstances, with a vote on the proposal scheduled for January 8 next year; both stocks saw little change this morning, with declines of 0.8% and an increase of 0.1%, respectively.</p>
<p>Related Article: HSBC's HKD 155 Privatization of Hang Seng to Vote on January 8 Next Year</p>
<h2>Vanke Plans to Hold Bondholders Meeting Again on December 18</h2>
<p>In individual stock news, Vanke (2202) did not receive creditor support for the extension plan of its domestic bond &#34;22 Vanke MTN004,&#34; leaving about 5 working days of grace period to raise funds, with the final payment deadline around December 20, and plans to hold a second bondholders meeting on December 18. The stock opened at HKD 3.48 this morning, down 5.4%.</p>
<p>Related Article: Vanke's Domestic Bond Three Extension Proposals Not Approved, 5 Working Days Left for Negotiation</p>
<h2>C.W. Chan: Hang Seng Index Short-term Fluctuation Between 25,000 and 26,300</h2>
<p>C.W. Chan, Vice Chairman of the Hong Kong Stock Analysts Association, stated that external weakness will put pressure on Hong Kong stocks this week, while institutional investors in Hong Kong have already entered holiday mode, with funds disinterested in trading. Expectations for mainland policies have repeatedly fallen short, estimating that without strong economic stimulus policies from the mainland, the Hang Seng Index will remain fluctuating between 25,000 and 26,300 points in the short term.</p>
<h2>Unlikely to Trigger Yen Carry Trade Liquidation Wave</h2>
<p>Regarding market concerns about whether the Bank of Japan's interest rate hike will lead to a repeat of last August's global stock market decline, C.W. Chan stated that the market has already anticipated the Bank of Japan's interest rate hike. Unless the hike exceeds expectations or the central bank signals a series of rate hikes, it is unlikely to trigger a massive liquidation wave of yen carry trades, which would subsequently lead to a significant decline in global stock markets
He admitted, &#34;Last time there was no preparation, this time the market is psychologically ready.&#34;</p>
<p>The so-called &#34;Yen carry trade&#34; refers to hedge funds borrowing low-interest yen and then exchanging it for dollars or other currencies to trade for profit in global stock markets; if Japan raises interest rates, it may prompt these hedge funds to sell stocks to cash out and then repay their yen loans, known as unwinding.</p>
<p>Looking ahead to this week, central banks in the UK, Europe, Japan, Thailand, and Indonesia will announce their latest interest rate decisions. At the same time, the United States will release its first non-farm payroll report after the government shutdown, including partial data for October and complete data for November, and the latest CPI data for the U.S. will also be released this week. Additionally, China's November &#34;three drivers&#34; data and the loan market quoted interest rate (5 years) will also be announced this week</p>

Baidu Q4 2024 Financial Results

<p>The Hang Seng Index opened lower on Monday and closed at 25,628 points, down 347 points or 1.34%, marking the largest single-day decline in over three weeks. Technology stocks led the decline, with AI-related stocks performing poorly. Technology stocks such as Alibaba, Tencent, Kuaishou, and Baidu all fell. Among chip stocks, SMIC, Hua Hong Semiconductor, and Innolux saw significant declines. Consumer concept stocks rose against the trend, with domestic insurance stocks performing well. The market anticipates that Japan's interest rate hike and poor data from China will impact the Asia-Pacific stock market</p>

- The market anticipates a 0.25% interest rate hike by the Bank of Japan, leading to a significant drop in the Nikkei 225 index by 1.3%.  
- Hong Kong's Hang Seng Index fell 1.34%, closing at 25,628 points, influenced by weak tech stocks and disappointing retail data from China.  
- Analysts predict the Hang Seng will fluctuate between 25,000 and 26,300 points, with expectations of supportive policies for domestic consumption in China.

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Tencent Holdings Limited

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KUAISHOU-W

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Hua Hong

HUA HONG SEMI

The Hang Seng Index opened lower and continued to decline, falling 347 points for the day. AI-related stocks led the decline, while consumer concept stocks rose against the trend｜Hong Kong stock market opening