Market Overview
▪ As of the midday close on December 18, Hong Kong stocks experienced a collective adjustment, continuing the high-level volatility pattern.
▪ By midday, the Hang Seng Index reported 25,357.64 points, down 0.44%, with short-term upward momentum showing signs of slowing.
▪ The Hang Seng TECH Index closed at 5,389.3 points at midday, down 1.26%, with the technology sector under significant pressure.
▪ The Hang Seng China Enterprises Index closed at 8,790.55 points at midday, down 0.6%.
Sector Performance
▪ The retail sector weakened overall, with leading stocks generally declining. Alibaba -W's latest transaction price was HKD 143.70, down 1.58%, with a transaction volume reaching HKD 3.151 billion, showing significant pressure. JD.com -SW fell by 0.53%, while Miniso's decline reached 3.25%. Short-term funds are cautious, reflecting ongoing volatility in consumer recovery, with some funds waiting for further verification of the recovery trend through retail sales data.
▪ The internet content and information sector also weakened, with mainstream stocks showing significant pullbacks. Tencent Holdings fell by 0.58%, Kuaishou -W dropped by 0.84%, and Baidu -SW decreased by 1.77%. There was a noticeable outflow of funds from the sector, with market risk appetite cooling, and the drag effect of heavyweight sectors on the index becoming prominent.
▪ The hardware and consumer electronics sectors faced significant pressure, with Xiaomi Group -W dropping by as much as 3.11%, with the latest transaction price at HKD 39.94 and a transaction volume of HKD 2.704 billion, reflecting a dominant risk-averse sentiment. Lenovo Group and Lenovo Holdings fell by 2.51% and 1.79%, respectively, with demand signals in the hardware sector still unclear, leading to a wait-and-see approach in the market.
Macroeconomic Background
▪ The Hong Kong stock market remains attentive to local consumption signals. In October, the latest year-on-year retail sales in Hong Kong grew by 5.3%, surpassing the previous month's performance, with clear signs of structural recovery. This data provides some support for retail and consumption-related sectors, while the market's short-term direction is still dominated by economic recovery and inflation expectations, with investors focusing on the impact of festive consumption and foreign trade performance on sector recovery.
Popular Stocks
▪ TRANSTECH (9963.HK) surged by 38.89%, with a transaction volume of HKD 1.746 million. The company announced a placement of up to 52 million shares at a discount of approximately 11.85%, yet the stock price rose, highlighting market enthusiasm for structural speculation in small-cap stocks.
▪ Huamei Lele (8429.HK) increased by 37.74%, with a transaction volume of HKD 768,500, standing out against the weak market and attracting short-term fund interest.
▪ ZhiHua Group (1842.HK) rose by 17.65%, with a transaction volume of HKD 877,600, driven by concentrated short-term fund inflows leading to stock price fluctuations.
▪ Chuangyue Holdings (653.HK) increased by 10.34%, with a transaction volume of HKD 5.1224 million, as its subsidiary Chuangyue Supply Chain engaged in comprehensive strategic cooperation with Ziyuan Yuan, prompting some active funds to seek short-term opportunities to drive the stock price.
Market Transaction Volume TOP10
▪ Alibaba -W (9988.HK) latest transaction price HKD 143.70, down 1.58%, transaction amount HKD 3.151 billion
▪ Tencent Holdings (700.HK) latest transaction price HKD 601.50, down 0.58%, transaction amount HKD 2.940 billion
▪ Xiaomi Group -W (1810.HK) latest transaction price HKD 39.94, down 3.11%, transaction amount HKD 2.704 billion
▪ Yangtze Optical Fibre and Cable (6869.HK) latest transaction price HKD 47.48, up 2.06%, transaction amount HKD 2.220 billion
▪ SenseTime -W (20.HK) latest transaction price HKD 1.90, down 3.55%, transaction amount HKD 1.326 billion
▪ SMIC (981.HK) latest transaction price HKD 65.00, up 0.39%, transaction amount HKD 1.293 billion
▪ China International Capital Corporation (3908.HK) latest transaction price HKD 19.65, up 3.64%, transaction amount HKD 1.232 billion
▪ China Mobile (941.HK) latest transaction price HKD 83.85, down 0.71%, transaction amount HKD 905 million
▪ Meituan -W (3690.HK) latest transaction price HKD 100.80, down 0.49%, transaction amount HKD 870 million
▪ HSBC Holdings (5.HK) latest transaction price HKD 117.80, up 0.26%, transaction amount HKD 783 million

The three major indices of the Hong Kong stock market adjusted collectively at noon, with the market experiencing high-level fluctuations. The retail, internet, and hardware sectors showed significant weakness, with Xiaomi Group falling more than 3%. Some small-cap stocks saw significant gains, with TRANSTECH surging nearly 39% in a single day, reflecting a preference for structural funds. The latest annual retail sales rebound has stimulated market attention on consumption recovery, but the pullback of heavyweight stocks has put overall market pressure

- On December 18, Hong Kong's main indices experienced collective adjustments amid ongoing market fluctuations.  
- The Hang Seng Index fell 0.44% to 25,357.64 points, while the Hang Seng Tech Index dropped 1.26%, indicating pressure on the technology sector.  
- Retail and internet content sectors faced weaknesses, with major companies like Alibaba and Tencent seeing declines as market sentiment turned cautious, impacting overall performance.

Market Heartbeat

Hang Seng TECH Index

TRANSTECH

Huatai-PB CSOP Hang Seng Technology ETF(QDII)

XL2CSOPHSTECH

XI2CSOPHSTECH

BABA-W

JD-SW

MNSO

TENCENT

KUAISHOU-W

BIDU-SW

XIAOMI-W

LENOVO GROUP

LEGENDHOLDING

SV VISION

GROWN UP GROUP

BONJOUR HOLD

YOFC

SENSETIME-W

Hong Kong Stock Midday Review | Hang Seng TECH Index fell 1.26%, Xiaomi dropped 3.11% leading the decline