Hong Kong Stock Market Closing (04.02) | Hang Seng Index closed down 0.7% as ceasefire expectations fell through, market under pressure; Geely Auto rose 8% against the trend, leading blue chips

According to Zhitong Finance APP, Trump threatened to send Iran back to the "Stone Age," causing previous market hopes for a quick end to the war to evaporate. The three major indices of the Hong Kong stock market were under pressure throughout the day, closing with the Hang Seng Index down 0.7% or 177.5 points at 25,116.53 points, with a total turnover of HKD 243.628 billion; the Hang Seng China Enterprises Index fell 0.56% to 8,456.92 points; the Hang Seng Tech Index dropped 1.63% to 4,679.1 points. For the week, the Hang Seng Index rose 0.66%, the China Enterprises Index increased 0.04%, while the Hang Seng Tech Index fell 2.07%.

Dongxing Securities stated that if the duration of the US-Iran conflict exceeds expectations, there is still a risk of further declines in the US stock market, and the Hong Kong stock market is highly correlated and easily affected, so caution is needed against left-side traps, suggesting waiting for new catalysts to emerge. Guoyuan International believes that if oil prices remain high, the market will further trade around re-inflation, and thus the Hong Kong stock market may still face disturbances from external uncertainties in this regard.

Blue Chip Performance

Geely Auto (00175) led the blue chips. By the close, it rose 8.37% to HKD 23.82, with a turnover of HKD 4.37 billion, contributing 19.06 points to the Hang Seng Index. Citigroup released a research report stating that Geely Auto's sales in March were 233,000 units, with total sales in the first quarter reaching 704,000 units, exceeding the bank's forecast; additionally, March exports increased by 34% compared to the previous quarter, showing strong performance, and the sales mix year-to-date has also exceeded expectations. The bank raised Geely Auto's target price from HKD 26 to HKD 27, maintaining its rating as "Buy."

In other blue chip stocks, Hansoh Pharmaceutical (03692) rose 5.18% to HKD 39.36, contributing 4.72 points to the Hang Seng Index; Sunny Optical Technology (02382) increased 5.18% to HKD 59.9, contributing 3.27 points; SMIC (00981) fell 3.5% to HKD 51, dragging down the Hang Seng Index by 12.31 points; Alibaba-W (09988) dropped 3.42% to HKD 118.5, dragging down the Hang Seng Index by 64.22 points.

Popular Sectors

On the market, most large tech stocks were in the red, with Alibaba down over 3% and Tencent down 1.49%. Trump stated he would "strike hard" against Iran, causing some oil and gas stocks to rise, with Shandong Molong soaring over 16%; the Ministry of Commerce and other departments began central reserve frozen pork storage, leading to a rise in pork stocks; March auto manufacturers' performance reports were released, with Geely Auto exporting over 80,000 units, hitting a record high, and its stock price rising over 8%; some coal, pharmaceutical, and lithium stocks also rose. On the other hand, rising oil prices pressured airline stocks, with China Eastern Airlines down nearly 5%; chip stocks, gold stocks, and AI applications generally fell.

1. Some oil and gas stocks strengthened. By the close, Shandong Molong (00568) rose 16.37% to HKD 9.24; Baikin Oil Services (02178) increased 9.26% to HKD 0.295; Sinopec Oil Services (01033) rose 3.37% to HKD 0.92.

On April 2, international crude oil continued to rise, with WTI crude up over 5% to USD 105.65 per barrel; Brent crude rose by 7% at one point, reaching USD 108 per barrel. On the evening of April 1, local time, US President Trump delivered a national address stating that the US would launch a fierce strike against Iran within two to three weeks, sending the country back to the "Stone Age." His remarks hardened the market's original hopes for a swift end to the war. According to CCTV International News, a spokesperson for Iran's Khatam al-Anbia Central Command stated that the United States and Israel are completely unaware of Iran's strong capabilities, and the enemy will face more devastating, broader, and destructive actions.

2. Divergence in automotive stock trends. As of the close, Chery Automobile (09973) rose 15.26% to HKD 32.02; Geely Auto (00175) rose 8.37% to HKD 23.82; Leapmotor (09863) rose 3.41% to HKD 53; XPeng Inc. (09868) fell 0.73% to HKD 67.75.

On April 1, several car manufacturers successively disclosed March sales figures, with Leapmotor delivering over 50,000 vehicles in March, once again becoming the monthly sales champion among new car manufacturers. Nio and Li Auto both saw significant increases in delivery volumes, while XPeng achieved 27,415 vehicles in March, a year-on-year decline of 17.44%, making it the only new car manufacturer with negative growth. Additionally, Geely Auto's March sales reached 233,000 vehicles, with overseas exports totaling 81,639 vehicles in March, showing double growth both year-on-year and month-on-month, with a year-on-year increase of 120% and a month-on-month increase of 34%.

Huatai Securities pointed out that recent disturbances in the Middle East have driven up oil prices, and the market is paying attention to the economic boundaries of electric vehicles compared to fuel vehicles. Europe and Southeast Asia are expected to become the core sources of incremental overseas electric vehicle penetration against the backdrop of rising oil prices. They recommend leading companies with the highest electric vehicle sales in target markets and those with rapid layouts in Europe.

3. Pork stocks rise against the trend. As of the close, Decon Agricultural (02419) rose 5.99% to HKD 66.35; Muyuan Foods (02714) rose 4.31% to HKD 40.2.

According to the Securities Times, the National Development and Reform Commission, the Ministry of Commerce, and the Ministry of Finance will recently carry out the second batch of central frozen pork reserve storage for this year and require localities to synchronize storage to better play the role of reserves in regulation. In the next step, the National Development and Reform Commission and other departments will continue to closely monitor the dynamics of the live pig market, increase storage efforts, strengthen comprehensive capacity regulation, guide farms to reasonably arrange production and operations, and promote stable market operations. Looking ahead to the future trends of pork prices, Dongxing Securities' research report points out that as the effects of capacity reduction gradually become apparent, supply pressure will ease in the second half of 2026.

4. Airline stocks under collective pressure. As of the close, China Eastern Airlines (00670) fell 4.86% to HKD 3.72; China Southern Airlines (01055) fell 4.26% to HKD 4.05; Air China (00753) fell 3.81% to HKD 4.8; Cathay Pacific Airways (00293) fell 2.81% to HKD 11.41.

U.S. President Trump's speech regarding "important updates" on the Iran conflict dashed expectations for a ceasefire, leading to a significant rise in international oil prices today. According to analysis from China Merchants Securities, jet fuel is the largest rigid cost item for the aviation industry, accounting for 30%-40% of total operating costs. The rapid rise in international oil prices has led to a substantial increase in the comprehensive procurement costs of domestic aviation kerosene, with every increase of 100 yuan/ton in oil prices resulting in an annual cost increase of 1.5 to 2 billion yuan for the three major airlines, making it inevitable for cost pressures to be passed on to the end consumers It is worth noting that after the comprehensive increase in international route fuel surcharges, the domestic route fuel surcharge will rise fivefold on April 5.

Popular Volatile Stocks

1. Leoch International (00842) surged significantly, closing up 76.79%, at HKD 0.99.

Leoch International announced that after considering various factors such as the current market and regulatory conditions, it has decided not to proceed with the proposed spin-off of Leoch Energy Inc. and its listing on the U.S. stock exchange at this stage. Leoch Energy Inc. will adjust its financing strategy and seek new opportunities.

2. Jiguang (06636) rose significantly, closing up 20.12%, at HKD 99.7.

Jiguang is an AI computer vision solution provider that offers end-to-end enterprise-level solutions covering development, deployment, and management for businesses across various industries. From the subscription situation, Jiguang's market subscription performance is hot, with 159,089 applicants and a 4,591.37 times subscription for the Hong Kong public offering.

3. Fourier (03625) reached a new high, closing up 12.61%, at HKD 92.

Public information shows that Fourier Semiconductor's Hong Kong IPO public offering was oversubscribed by 3,117 times, receiving subscriptions from over 110,000 people, making it one of the most sought-after star stocks among hard technology IPOs this year. After a successful listing, Fourier Semiconductor became the "first AI audio chip stock" in the Hong Kong market.

4. Mingming is Busy (01768) continued its upward trend, closing up 5.35%, at HKD 382.

Bank of America Securities pointed out that Mingming is Busy had a strong start in same-store sales growth in the first quarter of 2026, benefiting from operational improvements and a longer Spring Festival holiday. The bank believes that the growth momentum will continue throughout the year, driven by frequent product updates and the expansion of new categories. The group is prioritizing the development of heating and refrigeration products, as their demand visibility is strong and has scaling potential