Hong Kong Stock Market Mid-Review | Hang Seng Index down 1.18% as heavyweight blue chips retreat, automotive manufacturing breaks through against the trend with BYD surging over 5%

Market Overview

▪ As of the midday close, the three major indices of the Hong Kong stock market fell collectively, with market sentiment continuing to be under pressure.

▪ Hang Seng Index closed at 25,587.26 points, down 1.18%;

▪ Hang Seng Tech Index closed at 4,812.94 points, down 0.97%;

▪ China Enterprises Index reported 8,590.79 points at midday, down 2.77%.

Sector Performance

▪ The internet content and information sector faced overall pressure during the trading session, with investor sentiment being relatively cautious. Tencent Holdings fell by 2.79%, closing at HKD 490.40, with a trading volume of HKD 5.613 billion. Daiwa Securities lowered Tencent's target price to HKD 710, exacerbating market capital outflows and risk aversion. Kuaishou-W fell by 1.64%, with a high short-selling ratio of 93.15%, indicating that the sector still faces significant volatility in the short term. Baidu Group-SW fell by 2.58%, with short-term capital outflows, reflecting the pressure on the valuation of internet technology stocks.

▪ The communication equipment sector weakened overall, with performance and operator procurement pressures heightening risk aversion among investors, leading to noticeable capital outflows. Changfei Optical Fiber and Cable fell sharply by 5.58%, closing at HKD 210.00, with a trading volume of HKD 3.367 billion. Factors such as procurement fluctuations and large capital withdrawals highlighted short-term pressures. ZTE Corporation fell by 2.23%, with active trading, as the company actively lays out its AI business but the industry overall is under pressure. Cambridge Technology rose by 1.90%, benefiting from high growth in the global optical module market and new technology advancements, but market sentiment was somewhat divided due to major shareholders planning to reduce their holdings.

▪ The automobile manufacturing sector became the strongest highlight during the session, driven by export growth and high international oil prices. BYD Company surged against the trend by 5.61%, closing at HKD 111.00, with a trading volume of HKD 3.317 billion. Its subsidiary, Tengshi, launched new models, driving overseas growth; Geely Automobile rose by 0.32%, with first-quarter exports exceeding 200,000 units, and the internationalization process continuing to accelerate; XPeng Inc. rose by 0.52%, receiving sustained attention from investors, with new energy exports and rising global oil prices continuing to catalyze sector activity.

Macroeconomic Background

▪ The Hong Kong stock market has recently focused on annual import rates and other macro data, being highly sensitive to changes in external demand and regional economic recovery. In the short term, investors need to pay attention to the impact of macro data releases and policy directions on liquidity and valuation fluctuations, capturing industry opportunities that benefit from improved economic momentum.

Popular Stocks

▪ Dipu Technology (1384.HK) surged by 25.67% during the session, with the latest trading price at HKD 56.05, and a trading volume of HKD 2.105 billion. Significant capital inflows into the technology sector led to active trading in small-cap tech stocks, with short-term capital entering the market driving high volatility in Dipu Technology and related concept stocks, resulting in high short-term market enthusiasm but increased volatility risk.

▪ Different Group (6090.HK) rose by 30.61% during the session, with a trading volume of HKD 625 million. Active capital inflows during the session made it a target for short-term capital, reflecting high investor interest in active themes and short-term trading opportunities ▪ XunCe (3317.HK) rose 15.55% during the session, with the latest transaction price at HKD 358.20 and a transaction volume of HKD 1.83 billion. Driven by the high prosperity of the sector and capital attention, as a preferred choice for technology growth, funds have continued to flow in recently, showing outstanding short-term performance.

▪ MaoSheng Holdings (22.HK) rose 19.61% during the session, with a transaction volume of HKD 147 million. The company announced this week that its controlling shareholder would conduct a large-scale share placement to enhance liquidity, but the changes in the controlling structure have raised concerns, leading to high short-term volatility.

▪ TianShu ZhiXin (9903.HK) rose 15.57% during the session, with a transaction volume of HKD 435 million. There is a significant inflow of funds into the sector, and companies in the chip and technology hardware categories continue to attract capital attention, with TianShu ZhiXin reaching a new high since its listing during the session.

Market Transaction Volume TOP10

▪ Tencent Holdings (700.HK) latest transaction price HKD 490.40, down 2.79%, transaction volume HKD 5.613 billion

▪ Changfei Fiber Optic Cable (6869.HK) latest transaction price HKD 210.00, down 5.58%, transaction volume HKD 3.367 billion

▪ BYD Company (1211.HK) latest transaction price HKD 111.00, up 5.61%, transaction volume HKD 3.317 billion

▪ Alibaba -W (9988.HK) latest transaction price HKD 123.50, down 1.59%, transaction volume HKD 3.158 billion

▪ Pop Mart (9992.HK) latest transaction price HKD 151.30, up 0.27%, transaction volume HKD 2.637 billion

▪ Dipu Technology (1384.HK) latest transaction price HKD 56.05, up 25.67%, transaction volume HKD 2.105 billion

▪ XunCe (3317.HK) latest transaction price HKD 358.20, up 15.55%, transaction volume HKD 1.83 billion

▪ Xiaomi Group -W (1810.HK) latest transaction price HKD 30.46, down 1.42%, transaction volume HKD 1.828 billion

▪ SMIC (981.HK) latest transaction price HKD 56.80, down 2.49%, transaction volume HKD 1.596 billion

▪ China National Offshore Oil Corporation (883.HK) latest transaction price HKD 26.80, up 1.06%, transaction volume HKD 1.502 billion