"Hong Kong Stocks" The Hang Seng Index fell 340 points in the half-day session, technology stocks were under pressure, and pharmaceutical stocks were in demand

The U.S. federal government has ended its longest shutdown in history, followed by Federal Reserve officials adopting a hawkish stance, leading to another sell-off in tech stocks. The Dow Jones Industrial Average fell 1.7% and the Nasdaq dropped 2.3% overnight. Hong Kong stocks opened lower this morning, following the external market, down 412 points to a low of 26,660. The decline then narrowed to 191 points, reaching 26,881, and closed at 26,732 points, down 340 points or 1.3%; the Hang Seng Index fell 132 points or 1.4%, closing at 9,466 points; the Hang Seng Tech Index dropped 131 points or 2.2%, closing at 5,849 points. The total turnover of the market for the half-day was HKD 125.015 billion.

Tencent (00700.HK) reported a non-IFRS net profit increase of 18% to RMB 70.551 billion in the third quarter, exceeding expectations, but its stock price fell 0.9% to HKD 650. Bilibili (09626.HK) saw its non-GAAP net profit increase 2.3 times year-on-year to RMB 787 million in the third quarter, with its stock price down 1.8%.

JD.com (09618.HK) saw its stock price drop 5.6% to HKD 117.4. The company's non-GAAP net profit in the third quarter fell 56% year-on-year to RMB 5.8 billion, which was better than expected. However, Nomura cited JD.com's management indicating that retail revenue for fiscal year 2025 is expected to grow by about 10%, and retail operating profit is expected to grow by nearly 20%. This implies that revenue and operating profit for the fourth quarter of this year will decline by about 5% and 23% year-on-year, respectively, while the market had originally expected JD.com's retail revenue in the fourth quarter to grow by about 5% year-on-year and operating profit to grow by about 10%.

In the same group, JD Health (06618.HK) reported a nearly 60% year-on-year increase in non-IFRS operating profit in the third quarter, with its stock price rising 6.8% to HKD 68.9, making it the best-performing blue-chip stock. JD Logistics (02618.HK) reported a net profit of RMB 2.03 billion in the third quarter, down 7.9% year-on-year, with its stock price falling 3.9%.

In other tech stocks, Baidu (09888.HK) fell 7.2% to HKD 117.1, making it the worst-performing blue-chip stock. Alibaba (09988.HK) dropped 3.4%, with Alibaba Cloud announcing a price reduction for the Tongyi Qianwen 3-Max model. Meanwhile, Xiaomi (01810.HK), NetEase (09999.HK), Kuaishou (01024.HK), Meituan (03690.HK), and Lenovo Group (00992.HK) each fell between 1.8% and 2.7%. In the chip sector, SMIC (00981.HK) fell 0.8%, with its third-quarter net profit attributable to shareholders rising 28.9% year-on-year to USD 192 million.

In the financial sector, HSBC (00005.HK) fell 0.7%, Hong Kong Exchanges and Clearing (00388.HK) dropped 2%, and AIA (01299.HK) fell nearly 2%. In the automotive sector, Li Auto (02015.HK) fell 2.1%, and XPeng (09868.HK) dropped 5.2%. Nio (09866.HK) fell 3.5% Pharmaceutical stocks are in demand, with Hansoh Pharmaceutical (03692.HK) rising 2.5% against the trend, CSPC Pharmaceutical (01093.HK) up 1.3%, and China National Pharmaceutical Group (01177.HK) also up 1.2%.

According to reports, Link REIT (00823.HK) plans to spend AUD 1.5 billion to acquire interests in three shopping centers in Australia, with its stock price down 0.2% for the half-day. Country Garden (02007.HK) proposed a restructuring that may involve issuing mandatory convertible bonds, new shares, and SCA warrants, with its stock price flat for the half-day