The Market Review: Hang Seng Index Retracts 2%, Commodity Stocks Sold Off, CKH HOLDINGS Drops Over 4%

After the Hang Seng Index rose for seven consecutive trading days (an increase of 1,480 points or 5.6%) to reach a four-and-a-half-year high, the market is awaiting U.S. President Trump to officially announce the new chairman of the Federal Reserve tonight. Affected by the rise of the U.S. dollar index, Hong Kong stocks fell today (30th). Microsoft (MSFT.US) reported a 60% increase in its second fiscal quarter, but cloud service revenue fell short of expectations, leading to a 10% drop in its stock price the night before (29th). The Dow Jones and Nasdaq each rose 0.1% and fell 0.7% respectively the previous night. At the time of writing, the yield on U.S. 2-year bonds rose to 3.567%, and the yield on U.S. 10-year bonds rose to 4.271%, with the U.S. dollar index rising to 96.49. Dow futures are currently down 336 points or 0.7%, and Nasdaq futures are down 229 points or 0.9%. The Shanghai Composite Index fell 40 points or nearly 1% to close at 4,117 points, the Shenzhen Component Index fell 0.7%, and the mainland ChiNext Index rose 1.3%, with a total transaction amount of nearly 2.84 trillion RMB in the Shanghai and Shenzhen markets.

After opening 182 points lower, the Hang Seng Index's decline widened, dropping as much as 584 points to a low of 27,384 points, closing down 580 points or 2.08% at 27,387 points; the Hang Seng China Enterprises Index fell 235 points or 2.5% to close at 9,317 points; the Hang Seng Tech Index fell 122 points or 2.1% to close at 5,718 points. The total transaction amount for the day was 301.612 billion HKD. The total transaction amount for northbound trading was 116.489 billion HKD, while southbound funds had a net inflow of 3.218 billion HKD today (compared to a net inflow of 4.374 billion HKD on the previous trading day). The Tracker Fund (02800.HK) fell nearly 2.1% to close at 27.6 HKD, with a transaction amount of 16.836 billion HKD, a short-selling amount of 8.97 billion HKD, and a short-selling ratio of 53.282% (compared to a 5-day average of 25.137%). Alibaba (09988.HK) fell 2.4%, with a transaction amount of 12.7 billion HKD. New Oriental (09901.HK) rose 5.5% against the trend, becoming the blue-chip stock with the largest increase.

The Hang Seng Index has risen a total of 637 points or 2.4% this week, the Hang Seng China Enterprises Index has risen 156 points or 1.7% this week, and the Hang Seng Tech Index has fallen 79 points or 1.4% this week. Southbound funds have had a cumulative net inflow of only 1.525 billion HKD this week (with a net inflow of 23.523 billion HKD this week). In January, the Hang Seng Index rose a total of 1,756 points or 6.8%, the Hang Seng China Enterprises Index rose 403 points or 4.5%, and the Hang Seng Tech Index rose 202 points or 3.7%. Southbound funds had a cumulative net inflow of 67.788 billion HKD in January (compared to a net inflow of 22.932 billion HKD in December 2025).

【Hang Seng Index Stops Rising, Commodity Stocks Sold Off】

Spot gold fell more than 5%, currently reported at 5,057 USD per ounce, down nearly 5.9%. Commodity stocks were sold off, with Shandong Gold (01787.HK), Zijin Mining International (02259.HK), Zhaojin (01818.HK), and China National Gold (02099.HK) all seeing stock prices decline by 10% to 14%. Zijin (02899.HK) announced the issuance of 1.5 billion USD in convertible bonds, with its stock price falling 9.2% for the day. Lingbao (03330.HK) and China Silver (00815.HK) fell 8.1% and 6.7% respectively. In the resource sector, Jiangxi Copper (00358.HK), Minmetals Resources (01208.HK), and Hongqiao (01378.HK) fell 9.3% to 10.1%, while Chalco (02600.HK) and Luoyang Molybdenum (03993.HK) fell 7.9% and 8.1% respectively. Chalco invested over 4.2 billion RMB to partner with Rio Tinto to acquire equity in Brazilian aluminum The Supreme Court of Panama ruled that two local port contracts are unconstitutional, causing CKH HOLDINGS (00001.HK) to drop 4.6% to HKD 63.25 for the entire day. It is rumored that New World Development (00017.HK) may change ownership, with Blackstone (BX.US) negotiating to become the largest single shareholder. The controlling shareholder of New World confirmed that they have been approached by investors, and New World Development's stock price surged nearly 11.9% this morning, closing up 2.2% for the day. The spokesperson for the Ministry of Foreign Affairs, Hua Chunying, responded at a regular press conference, stating that the relevant company (CKH HOLDINGS) has issued a statement indicating that the ruling contradicts the laws under which Panama approved the relevant franchise rights, and the company will reserve all rights, including legal proceedings. China will take all necessary measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.

【Stocks Down by 1,500, CSPC Falls by 10%】

The Hong Kong stock market slightly weakened, with a rise-to-fall ratio of 15 to 37 for main board stocks (compared to 27 to 25 the previous day), and 1,538 stocks fell (a decline of 2.9%). Today, 9 constituent stocks of the Hang Seng Index rose, while 79 fell, with a rise-to-fall ratio of 10 to 90 (compared to 61 to 33 the previous day). The market recorded short selling of HKD 48.987 billion, accounting for 18.079% of the total turnover of HKD 270.968 billion for shortable stocks.

In the pharmaceutical sector, CSPC (01093.HK) received over HKD 9.3 billion in advance payments for its collaboration with AstraZeneca to develop innovative drugs, yet its stock price fell by 10.2%, making it the largest declining blue-chip stock. Weigao (01066.HK), China National Pharmaceutical Group (01177.HK), Junshi Biosciences (01877.HK), and WuXi AppTec (02359.HK) all saw their stock prices decline by 3.3% to 4.9%