The Hang Seng Index fell 232 points in the half-day session, with Tencent and Alibaba leading the decline, while aluminum and gold stocks performed well against the market trend | Hong Kong Stock Market Midday

The Middle East conflict continues to escalate. The Hang Seng Index opened 419 points lower this morning, with the decline at one point expanding to 542 points, hitting a low of 24,409 points. Subsequently, the decline gradually narrowed, closing at 24,719 points at noon, down 232 points or 0.93%, with a half-day turnover of HKD 154.8 billion. The Tech Index fell 81 points or 1.7%, reporting 4,696 points. Among the heavyweight blue-chip stocks, Tencent (700) and Alibaba (9988) fell 2.2% and 1.9% respectively, along with HSBC Holdings (005) down 1.8%, being the three major stocks dragging down the Hang Seng Index; conversely, China Construction Bank (939) and PetroChina (857) rose 1.2% and 1.7% respectively, supporting the market. China Hongqiao rose over 3%, Chalco International up 18% In addition, China Hongqiao (1378) rose 3.4% at noon, becoming the best-performing blue-chip stock, mainly due to Iran's attacks on two aluminum production facilities in the Middle East, exacerbating the already tense global supply situation; this news also benefited related stocks, with Chalco International (2068) rising 18%; China Aluminum (2600) also rose 7.9%. On the other hand, gold prices initially fell before rebounding this morning, briefly returning to the USD 4,500 level, with gold-related stocks also performing well, including Chifeng Jilong Gold Mining (6693) up 6.4%; Lingbao Gold (3330) up 6.2%; and Zijin Mining (2259) up 2.3%. Total external licensing amount for innovative drugs exceeds USD 60 billion The innovative drug sector generally rose, with Kintor Pharmaceutical (9926) up 6.72%; Rongchang Biopharmaceutical (9995) up 6.21%; and Innovent Biologics (9969) up 3.74%. According to the National Medical Products Administration, the total amount of external licensing transactions for innovative drugs in China exceeded USD 60 billion in the first three months of this year. However, internet stocks collectively fell, with Tencent and Alibaba, as well as Baidu (9888) down 3.41%; Xiaomi (1810) down 1.52%; and Meituan (3690) down 1.34%. Related article: Huayan Robotics rose over 15% at noon, claiming strong international capital support, "should go very far." --- The Middle East conflict has continued for a month without resolution, intensifying and evolving into an economic crisis impacting global energy and raw material supplies. After four consecutive weeks of decline, the Hang Seng Index has evaporated its gains for the year, with a cumulative drop of 678 points or 2.65% as of last Friday. Analysts point out that Hong Kong stocks are continuously affected by multiple macro factors, with significant short-term adjustment pressure, and the subsequent trend will still heavily depend on changes in geopolitical situations, with a further test of the 24,000-point mark expected this week. The US-Iran conflict has opened a new front, with Houthi forces joining in the fight against Israel, stimulating international oil prices to rise, with both Brent crude and New York crude up over 3%; international gold prices, however, were under pressure, with spot gold prices dropping 1.4% to about USD 4,432 this morning. The Asia-Pacific stock markets also opened lower, with Japanese and South Korean stocks both falling over 4%. In US stock futures, the three major indices fell about 0.6% to 0.7%. Aluminum and oil stocks rise against the trend In the Hong Kong stock market, the Hang Seng Index opened 419 points lower this morning, reporting 24,532 points. Internet stocks were generally under pressure, with Tencent (700) down 1.7%; Alibaba (9988) down 3.6%; Meituan (3690) down 2.6%; and JD.com (9618) down 3% Xiaomi (1810) also fell over 2%. Among blue-chip stocks, CITIC Limited (267) and BYD (1211) dropped 5.2% and 4.6%, respectively. Aluminum and oil-related stocks rose against the trend, with China Hongqiao (1378) up over 6%; CNOOC (883) and PetroChina (857) rose 2% and 1.7%, respectively, while China National Petroleum (632) surged over 7%. In the oil service sector, Shandong Molong (568) and Baqian Oil Services (2178) also rose over 7% and 12%, respectively. Insilico Medicine and Eli Lilly Reach Cooperation In individual stock news, Insilico Medicine (3696) announced a global pipeline licensing and AI drug development collaboration with Eli Lilly, qualifying for an upfront payment of $115 million, and further payments upon achieving development, regulatory, and commercialization milestones, bringing the total transaction value to approximately $2.75 billion; additionally, Insilico Medicine will receive tiered royalties based on future sales. The stock opened at HKD 65.75, up 15%. Zeng Yongjian: Hang Seng Index May Test 24,000 Level Zeng Yongjian, Vice Chairman of the Hong Kong Stock Analysts Association, stated that the uncertainty of the geopolitical situation in the Middle East is still fermenting, coupled with a rising global risk aversion sentiment, leading funds to reduce holdings in risk assets, resulting in a generally downward trend for Hong Kong stocks. Regarding the confirmation of attacks on two large aluminum plants in Bahrain and the UAE by Iran over the weekend, major banks indicated that rising commodity prices would pressure the global economy. Zeng noted that persistently high international oil prices and other energy prices further raise market concerns about a potential recession due to rising energy costs, while the risk of a U.S. economic recession coexists with rising inflation expectations. The market anticipates that the Federal Reserve is unlikely to cut interest rates this year, and there is even a risk of rate hikes, making it difficult for the Hong Kong stock market to remain insulated, which may further test the 24,000-point level. Chan Lok-yi: Hang Seng Index Must Stabilize Above 250-Day Moving Average Chan Lok-yi, Assistant Manager of the Research Department at Cinda International, stated that the international geopolitical situation may fluctuate again, and the market currently holds a wait-and-see attitude towards mainland policies. Corporate earnings are likely to face challenges in the short term due to rising commodity prices and freight costs, coupled with the lack of stable inflows from the north, which limits upward potential. The Hang Seng Index must stabilize above the 250-day moving average, around 25,100 points; otherwise, there will still be downward pressure. Looking ahead to this week, China will announce the March PMI (Purchasing Managers' Index); companies such as Lankai Technology (6809), Zhipu (2513), Mingming is Busy (1768), and Biran Technology (6082) will release earnings; new stocks like Jishi Jiao (6636) and Huayan Robotics (1021) will also be listed this week; Hong Kong and U.S. stocks will be closed on Friday for Good Friday. On the external front, the U.S. will release significant economic data such as March non-farm payrolls and unemployment rate; G7 finance ministers, energy ministers, and central bank governors will hold a meeting to discuss the release of strategic oil reserves. Related articles: The clouds of war in the Middle East have not dissipated, the global energy market is turbulent, key Hong Kong stocks are announcing earnings | Weekly Outlook