<p>The Japanese Financial Policy Meeting is imminent, and the interest rate hike action may enter the final coordination stage. The yen has strengthened, but the market remains cautious about Japan's interest rate hike actions. Coupled with the market's wait for the upcoming U.S. non-farm payroll data, Asian stock markets experienced a &#34;mini-crash&#34; on Tuesday, with Japanese stocks falling 1.6% or 784 points at closing. Hong Kong stocks also continued to weaken and remained sluggish throughout the day. The Hang Seng Index closed at 25,235 points, down 393 points or 1.5%, falling below 25,500 points and hitting a low not seen in over three weeks. The Hang Seng Index has fallen for two consecutive days, with a total drop of 741 points. The total market turnover was HKD 201.5 billion, and the inflow of northbound capital decreased to HKD 83 million, but it has seen inflows for two consecutive days.</p>
<h2>Alibaba down 3%, SenseTime down over 6%</h2>
<p>The Hang Seng Index opened 81 points lower and later saw tech stocks decline further, dropping as much as 542 points. The decline slightly stabilized towards the end of the market, recovering some losses, ultimately closing at 25,235 points, down 393 points. The Hang Seng China Enterprises Index closed at 8,757 points, down 159 points. The Tech Index closed at 5,402 points, down 95 points.</p>
<p>U.S. stocks related to AI infrastructure continued to decline overnight, and Hong Kong's AI-related stocks remained weak. Among tech stocks, Alibaba (9988) fell 3%, closing at HKD 144.2; Kuaishou (1024) dropped 0.5%, closing at HKD 64.1; SenseTime (020) plummeted 6.1%, closing at HKD 2; chip stocks such as SMIC (981) fell 1.9%, closing at HKD 63.45; and Hua Hong Semiconductor (1347) decreased 1.5%, closing at HKD 66.3.</p>
<h2>Gold and Bitcoin-related stocks under pressure</h2>
<p>Gold stocks followed the decline in international gold prices. Zijin Mining (2899) fell 4.4%, closing at HKD 32.94; Zijin Gold International (2259) dropped 6%, closing at HKD 148.9; Zhaojin Mining (1818) fell 3.8%, closing at HKD 28.82; and Shandong Gold (1787) decreased 3.4%, closing at HKD 33.26.</p>
<p>Bitcoin briefly fell below the USD 86,000 mark. Cryptocurrency concept stocks faced significant selling pressure, with Boyaa Interactive (434) down 3.9%, closing at HKD 3.43; New Huo Technology (1611) down 3%, closing at HKD 2.88; and OSL (863) down 1.5%, closing at HKD 17.72.</p>
<p>The Ministry of Housing and Urban-Rural Development of China stated that it would grant local governments autonomy in regulating the real estate market and adjust real estate optimization policies according to local conditions. However, the news failed to boost the domestic property sector. Longfor (960) fell 2.3%, closing at HKD 9.08; China Resources Land (1109) fell 2.3%, closing at HKD 27.3; China Overseas (688) dropped 2.4%, closing at HKD 12.2; however, it was reported that Vanke (2202) plans to propose to creditors to pay CNY 60 million in due bond interest to seek a one-year extension on principal repayment, leading Vanke to rebound 2.9%, closing at HKD 3.59.</p>
<h2>GuoXia Technology debuts with a 118% surge</h2>
<p>In individual stocks, GuoXia Technology (2655) debuted on its first day of listing, closing at HKD 43.8, a significant increase of 118% from the offering price of HKD 20.1, resulting in a paper profit of HKD 2,370 per lot, excluding handling fees;
HaiJia Medical (6078) plans to spend no less than 300 million yuan to repurchase shares, with its stock price rising 3.3% against the market trend, closing at 12.01 yuan. In addition, Fosun Pharma (2196) intends to acquire the controversial drug developer Green Valley Pharmaceuticals. Earlier reports indicated that the registration certificate for Green Valley Pharmaceuticals' Alzheimer's disease treatment had expired; Fosun Pharma fell 5.8%, closing at 21.06 yuan.</p>
<p>Liang Jiewen, an investment manager at Hong Gao Securities, stated that the latest economic data from the mainland is poor, and negative news from real estate companies such as Vanke and Agile has dragged down the overall industry recovery. With the holiday approaching, there is a lack of funds to support low prices, and the upcoming interest rate hike in Japan has led some funds to unwind their yen carry trades early. Under the influence of multiple negative news, Hong Kong stocks have fallen for two consecutive days.</p>
<p>He continued to point out that the stock market crash triggered by the yen unwinding last year is worth referencing, but this time the interest rate hike in Japan is unlikely to trigger another stock market crash, mainly because Hong Kong stock trading volume has been exaggerated this year, moving away from last year's low investment sentiment. However, it is expected that the Hang Seng Index will struggle to break through in the short term, fluctuating between 25,000 and 27,000 points.</p>
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<p>The Hang Seng Index opened 80 points lower this morning, continued to decline, and closed near its half-day low (25,117), reporting 25,138 points, down 490 points or 1.91%, with a turnover of 107.1 billion yuan. As for the Tech Index, it closed at 5,366 points, down 132 points or 2.41%.</p>
<h2>Only 4 of the 89 blue-chip stocks rose</h2>
<p>Among the 89 blue-chip stocks, only 4 rose, and the increase was less than 1%, with 1 stock unchanged, while the rest all &#34;turned red.&#34; Among the heavyweight stocks, Alibaba (9988) fell 3.6% in the half-day, Xiaomi (1810) and AIA (1299) fell 3% and 2.2% respectively, dragging down the Hang Seng Index the most.</p>
<p>In terms of stock price fluctuations, China Hongqiao (1378) plummeted 5.8%, making it the worst-performing blue-chip stock, while Zijin Mining (2899), Stone Pharmaceutical (1093), and Xinyi Solar (968) also fell 4% or more, and China Life (2628) fell 3.9%.</p>
<p>On the news front, the chances of Kevin Hassett, Director of the White House National Economic Council, succeeding as Federal Reserve Chairman have decreased, leading to uncertainty about interest rate cuts. Additionally, the mainland announced that the &#34;three engines&#34; data was worse than market expectations, and investors' willingness to &#34;close positions&#34; at the end of the year is relatively high, all contributing to the weakness of Hong Kong stocks.</p>
<p>Apart from China Hongqiao and Zijin, the non-ferrous metals sector was also one of the hardest-hit areas in the half-day decline, with Lingbao Gold (3330) falling over 6%, Shandong Gold (1787) down 5.1%, and China Aluminum (2600) down 4.9%. In fact, a report from JPMorgan pointed out that due to the severe overweight of gold and silver in the Bloomberg Commodity Index (BCOM), a large amount of &#34;technical selling&#34; may occur during the index rebalancing period in January next year, with the scale of futures selling expected to account for 9% and 3% of the total holdings of silver and gold, respectively.</p>
<p>Related article: Gold and silver prices soaring may have &#34;aftereffects,&#34; silver target seen at 100 USD, but a large amount of selling is expected in January next year
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<p>The market is awaiting the U.S. non-farm payroll report, which was postponed earlier due to the government shutdown, set to be announced on Tuesday. Additionally, the director of the U.S. National Economic Council, Kevin Hassett, who is seen as favoring significant interest rate cuts, reportedly faces resistance from influential figures close to President Trump due to his close relationship with Trump, reducing his chances of succeeding as the Federal Reserve Chairman.</p>
<h2>Bitcoin Falls Below $86,000</h2>
<p>With expectations of U.S. interest rate cuts cooling, the three major U.S. stock indices struggled to rebound on Monday. The Dow closed at 48,416 points, down 41 points or 0.09%; the S&amp;P 500 closed at 6,816 points, down 10 points or 0.16%; and the Nasdaq closed at 23,057 points, down 137 points or 0.59%. The Golden Dragon Index, which reflects the performance of Chinese concept stocks, fell 2.17% to 7,582 points.</p>
<p>On the other hand, Bitcoin continued to weaken, recently falling below $86,000, currently reported at $85,944. Several cryptocurrency-related stocks declined on Monday, with CleanSpark (CLSK) down over 15%, Bitmine Immersion Technologies (BMNR) and IREN Ltd (IREN) both down over 11%, while MicroStrategy (MSTR) fell over 8%.</p>
<h2>Hang Seng Index Expected to Have Narrow Fluctuations Before Month-End</h2>
<p>In the Hong Kong stock market, the Hang Seng Index opened 80 points lower at 25,547 points. Wu Lixian, an international strategist at Everbright Securities, stated that market trading tends to slow down towards the end of the year, and the Hong Kong stock market lacks upward momentum in the short term. It is expected that the Hang Seng Index will have narrow fluctuations before the end of the month, moving between 25,000 and 26,000 points.</p>
<p>The market continues to worry about the prospects of AI stocks, with tech stocks generally declining. Alibaba (9988) fell 1.1%; Tencent (700) fell 0.08%; Meituan (3690) fell 0.7%; JD.com (9618) and Xiaomi (1810) fell 0.3% and 1.3%, respectively; Baidu (9888) fell 1.5%.</p>
<h2>Yihua Tong Plans to Issue Shares at a 15% Discount</h2>
<p>In individual stock news, Zhongwei New Materials (2579) has been added to the list of eligible securities for the Hong Kong Stock Connect, opening at HKD 26.5, up 0.23%. Additionally, Yihua Tong (2402) plans to place 8.88 million new H shares, raising approximately HKD 200 million, equivalent to 3.7% of the expanded total issued share capital, with a placement price of HKD 22.68 per share, a 15% discount to the previous closing price of HKD 26.68. The stock opened at HKD 26.04, up 2.4%.</p>
<h2>Guo Xia Technology's Public Offering Oversubscribed Nearly 1,890 Times</h2>
<p>In new stock news, Guo Xia Technology (2655) officially listed today, with its public offering recording nearly 1,890 times oversubscription, a 10% chance of winning one lot. The international offering was oversubscribed over 2 times. The stock opened at HKD 38, up 89%.</p>
<p>Regarding the northbound capital flow, there was a net purchase of HKD 3.654 billion in Hong Kong stocks yesterday, with Xiaomi (1810), Ping An Insurance (2318), and Meituan (3690) receiving net purchases of HKD 1.382 billion, HKD 1.19 billion, and HKD 548 million, respectively;
Tencent (700), Hua Hong Semiconductor (1347), and China Mobile (941) were net sold for HKD 774 million, HKD 555 million, and HKD 550 million, respectively</p>

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<p>The Hang Seng Index hit a low not seen in over three weeks, closing at 25,235 points, down 393 points or 1.5%. Technology stocks generally fell, with Alibaba down 3% and SenseTime down over 6%. Gold and Bitcoin-related stocks also declined, with Zijin Mining dropping 4.4% and Bitcoin falling below the $86,000 mark. The Ministry of Housing and Urban-Rural Development of China granted local governments autonomy in regulating the real estate market, but this failed to boost the domestic property sector</p>

- The Japanese financial decision-making meeting is approaching, with interest rate hikes possibly entering the final coordination stage, while the yen strengthens.  
- Asian stock markets experienced a "mini-crash," with Japan's Nikkei down 1.6% and Hong Kong's Hang Seng Index dropping 1.5%, marking continued declines influenced by weak economic data and caution surrounding US labor statistics.  
- Hong Kong's stocks faced bearish trends, particularly in technology and real estate sectors, while new listings like Guo Xia Technology surged significantly on their debut.

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The Hang Seng Index hits a low not seen in over three weeks, tech stocks continue to decline. Analysis: Some funds are prematurely unwinding their yen carry trades | Hong Kong stock market opens