Hong Kong Stock Market Closing (04.10) | Hang Seng Index rose by 2.06% as Trump "changed his mind," stimulating a rebound in export stocks; gold and consumer electronics performed well

According to the Zhitong Finance APP, U.S. President Trump has suspended reciprocal tariffs on certain countries for 90 days. Hong Kong stocks opened high but fell back today, with the Hang Seng Index and the Hang Seng China Enterprises Index both rising over 4% in the morning session, while the Hang Seng Tech Index once rose over 6%. By the close, the Hang Seng Index was up 2.06% or 417.29 points, closing at 20,681.78 points, with a total turnover of HKD 395.534 billion; the Hang Seng China Enterprises Index rose 1.76%, closing at 7,668.38 points; the Hang Seng Tech Index rose 2.66%, closing at 4,813.74 points.

CITIC Securities pointed out that under short-term emotional disturbances, the market may enter a consolidation phase. Dividend-yielding sectors such as telecommunications and banking, undervalued consumer staples, and liquidity-driven biotechnology are expected to continue to outperform. However, starting from mid-April, if overseas markets begin to trade on expectations of a new round of interest rate cuts by the Federal Reserve, and if domestic markets start to anticipate the end-of-month Politburo meeting, Hong Kong stocks are likely to regain an upward trend.

Blue Chip Performance

HSBC Holdings (00005) rebounded significantly. By the close, it was up 5.58%, closing at HKD 75.7, with a turnover of HKD 4.617 billion, contributing 79.8 points to the Hang Seng Index. Morgan Stanley issued a technical opinion report, predicting that HSBC Holdings will outperform the market in the next 15 days, with a probability of over 80%, giving it an "overweight" rating and a target price of HKD 83. Morgan Stanley noted that the recent sell-off of HSBC's stock price has revealed short-term value, as market concerns over geopolitical issues have led to price adjustments.

In other blue chip stocks, JD Health (06618) rose 8.15%, closing at HKD 32.5, contributing 4.63 points to the Hang Seng Index; Lenovo Group (00992) rose 7.07%, closing at HKD 8.03, contributing 7.16 points; China Shenhua (01088) fell 1.78%, closing at HKD 30.35, dragging down the Hang Seng Index by 3.06 points; New Oriental-S (09901) fell 0.88%, closing at HKD 33.6, dragging down the Hang Seng Index by 0.34 points.

Popular Sectors

On the market, large technology stocks generally rose, with JD and Kuaishou rising over 3%, and Alibaba rising over 1%. Trump's "tariff suspension order" boosted sentiment, leading export stocks to rebound today, with significant rebounds in Apple concept stocks; spot gold once broke through USD 3,120, and the market is focused on the U.S. March CPI data, with gold stocks leading in gains; Hong Kong local bank stocks rose, with Standard Chartered Bank up over 6% and HSBC Holdings up over 5%; stocks in apparel, shipping, automotive, pharmaceuticals, gaming, and domestic real estate also rose. On the other hand, some coal stocks showed weak performance, with China Shenhua down 1.78%.

1. Gold stocks led in gains. By the close, Lingbao Gold (03330) was up 10.42%, closing at HKD 8.16; Zhaojin Mining (01818) was up 7.04%, closing at HKD 16.12; Shandong Gold (01787) was up 6.31%, closing at HKD 19.22; Zijin Mining (02899) was up 5.39%, closing at HKD 15.64.

With the implementation of U.S. tariffs on China and domestic countermeasures announced, gold prices subsequently rose, strengthening market risk aversion. On April 10, spot gold once broke through the USD 3,120.00 per ounce mark, and as of the time of writing, it was reported at USD 3,115.12 per ounce, up over 1% for the day; the latest COMEX gold futures main contract was reported at USD 3,127.2 per ounce, up 1.54% for the day It is worth noting that the highly anticipated U.S. March CPI data will be released tonight. Market forecasts predict that the U.S. March CPI will increase by 0.1% month-on-month, slowing from last month's 0.2%, marking the smallest monthly increase in eight months; the year-on-year growth rate is expected to slow from last month's 2.8% to 2.6%.

2. Apple concept stocks perform well. As of the close, BYD Electronic (00285) rose 6.7% to HKD 31.05; AAC Technologies (02018) rose 5.76% to HKD 34.9; Sunny Optical (02382) rose 5.42% to HKD 62.2; GoerTek (01415) rose 3.98% to HKD 19.86.

U.S. President Trump stated on the 9th local time that he has authorized a 90-day tariff suspension for countries that do not take retaliatory actions. In his speech, Trump mentioned that he would consider exempting some U.S. companies from tariffs, with Apple being viewed as a potential candidate for exemption as one of the "flagship companies" in the U.S. Overnight, Apple's stock price surged 15.33%, reclaiming the title of "most valuable company in the world." It is reported that during the U.S.-China trade war in 2019, Apple submitted multiple tariff exemption applications, most of which were approved by U.S. trade regulatory agencies.

Citi's research report pointed out that U.S. tariffs not only affect the transportation of Apple products, leading to an increase in retail prices, but the profit margins of Apple suppliers may also be pressured due to decreased operating leverage. However, considering that the profit margins of Apple suppliers are already at a low level, it is believed that they do not need to bear the additional costs of tariffs directly. The report indicated that currently, BYD Electronic, GoerTek, Lenovo Group, and AAC Technologies are undervalued by the market, while SMIC and Sunny Optical are minimally affected by U.S. tariffs, yet their stock prices are still dragged down, which is believed to provide a good entry opportunity for investors.

3. Automotive stocks rise collectively. As of the close, Li Auto-W (02015) rose 4.85% to HKD 85.4; XPeng-W (09868) rose 4.4% to HKD 71.2; Geely Automobile (00175) rose 4.19% to HKD 14.92; Nio-SW (09866) rose 3.92% to HKD 26.5.

Data from the Passenger Car Association shows that in March, the retail sales of new energy passenger vehicles reached 991,000 units, a year-on-year increase of 38.0% and a month-on-month increase of 45.0%; the cumulative retail sales from January to March reached 2.42 million units, a year-on-year increase of 36.4%. The Passenger Car Association pointed out that driven by national consumption promotion and corresponding consumption promotion policies in many provinces and cities, the offline activities of the spring auto show will fully activate the market atmosphere and accelerate the gathering of popularity. The timely holding of the Shanghai Auto Show and the model release activities during the promotional period surrounding the Shanghai Auto Show, combined with the implementation of consumption promotion policies in various places, will undoubtedly become a catalyst and trigger for boosting domestic automobile consumption.

4. Shipping stocks rebound significantly. As of the close, China COSCO Shipping Holdings (01919) rose 6.38% to HKD 11; Seaspan Corporation (01308) rose 5.49% to HKD 18.46; Orient Overseas International (00316) rose 4.19% to HKD 102; Pacific Basin Shipping (02343) rose 2.6% to HKD 1.58 U.S. President Donald Trump stated on the 9th local time that he has authorized a 90-day suspension of tariffs on countries that do not take retaliatory actions. Affected by this news, domestic commodity futures surged after the market opened, with the main contract for container shipping on the European route hitting the upper limit. Morgan Stanley previously pointed out that increased tariffs are a major obstacle to global trade and are generally an unfavorable factor for the demand fundamentals of the freight industry. Container shipping companies are the most severely affected. These companies adopt an asset-intensive business model, and price fluctuations significantly impact their operational leverage, while price levels are directly influenced by supply and demand relationships.

5. All CRO concept stocks rose. By the close, Viva Biotech (01873) rose 10.66% to HKD 1.35; Zai Lab (06127) rose 10.49% to HKD 11.8; Kanglong Chemical (03759) rose 5.03% to HKD 12.12; WuXi AppTec (02359) rose 4.44% to HKD 50.55.

CITIC Construction Investment pointed out that the impact of tariff policies on the pharmaceutical industry chain is relatively complex and may still have variables. The firm noted that the domestic CXO industry currently exports to the U.S. mainly in the form of R&D services, which are tariff-exempt. Most commercial stage orders are only completed by domestic companies up to the N-2 or N-1 stage, and then transferred to Europe and other places to complete the final synthesis steps, thus still being tariff-exempt, with overall impact being relatively limited. The introduction of "reciprocal tariffs" in the domestic market is also expected to have a small overall impact on the industry.

Popular Stocks with Abnormal Movements

1. Duoxiangyun (06696) experienced a sharp decline in volume in the afternoon. By the close, it fell 88.16% to HKD 0.88.

Duoxiangyun previously announced that for the fiscal year ending December 31, 2024, the company's total revenue is approximately RMB 1.79 billion, a year-on-year increase of about 50.2%. The group's net loss is RMB 186 million, a year-on-year decrease of about 661.4%, with a net loss rate of 10.4%. This is mainly due to the impairment loss provisions for trade receivables and intangible assets recognized during the reporting period.

It is worth noting that Duoxiangyun previously announced plans to issue 12 million shares at a discount of about 13.89%, netting approximately HKD 37.1 million. The group intends to use the raised funds for: purchasing media resources from Douyin (especially Douyin distribution channels) and promoting Douyin distribution channels; as well as general working capital.

2. TCL Electronics (01070) was strong throughout the day. By the close, it rose 25.84% to HKD 8.23.

TCL Electronics announced yesterday the launch of an equity incentive plan with performance conditions for 2025, granting approximately 91.498 million shares to 860 core employees, with assessment targets for non-recurring net profit growth from 2024 (HKD 1.61 billion) to achieve a stepwise increase from 2025 to 2027.

Guojin Securities previously pointed out that China's home appliance industry still has strong competitive advantages. From the perspective of the supply chain, it is difficult for China's home appliance capacity to be replaced in the short term. In the core components market of the three major white goods, compressors and motors, China's production capacity accounts for over 70%. In the black goods sector, Hisense and TCL Electronics lead in global market share, and all of the top ten global TV OEM manufacturers are Chinese companies