[Zhenzhuo HK Stock Experts] Hong Kong stocks fluctuate within a range; Meituan (03690.HK) continues losses in Q4
Hong Kong Stock Market Trends and Analysis
U.S. stocks showed mixed performance on Thursday, with tech stocks trending upward. The S&P 500 and Nasdaq indices performed well, while the three major indices closed with mixed results. The U.S. dollar rebounded from its lows, and the 10-year Treasury yield rose to 4.1%. Gold prices showed moderate gains, and oil prices also trended upward. Hong Kong depositary receipts were generally weak, and the market is expected to open lower in early trading. Mainland stocks showed mixed performance yesterday, with the Shanghai Composite Index fluctuating and closing down 0.1%. Trading volume in the Shanghai and Shenzhen markets further declined. Hong Kong stocks fell initially but rebounded later, with the index briefly dropping to around 25,600 points before rebounding to near 26,000 points. Gains moderated toward the close, and trading volume remained light. Blue-chip stocks generally rose, but the market has yet to break out of its range-bound pattern, with the index expected to fluctuate between 25,200 and 26,200 points.
Industry News
$MEITUAN(03690.HK) recently announced its third-quarter results, with group revenue growing 2% year-on-year to RMB 95.5 billion. Due to intensifying competition in the food delivery industry, the operating profit of Meituan's core local commerce segment declined significantly year-on-year, turning into an operating loss of RMB 14.1 billion. Meanwhile, due to overseas expansion, the operating loss of the new business segment widened to RMB 1.3 billion. As a result, the adjusted EBITDA loss and adjusted net loss for the third quarter were RMB 14.8 billion and RMB 16 billion, respectively. As of the end of September, Meituan held cash and cash equivalents and short-term financial investments of RMB 99.2 billion and RMB 42.1 billion, respectively. For core local commerce, segment revenue decreased 2.8% to RMB 67.4 billion in the third quarter. Affected by recent intense market competition, the operating loss was RMB 14.1 billion, with an operating loss margin of 20.9%. Revenue for the new business segment grew 15.9% to RMB 28 billion. The segment's operating loss increased 24.5% to RMB 1.3 billion, with the operating loss margin improving by 2.5 percentage points quarter-on-quarter to 4.6%. Looking ahead to the fourth quarter, with market competition remaining intense, Meituan expects the trend of operating losses in its core local commerce segment and at the company level to continue. The company needs to increase costs to maintain its market leadership in local commerce, and the recovery in profit margins will be slow. Operating cash flow in the third quarter saw a significant outflow, raising market worries about deteriorating operating performance and financial conditions. Caution is advised for the market outlook.
Harbor Family Office Business Development Director, Kwok Ka Yiu, CFA
Date: Friday, December 5, 2025
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