{Economic Information Daily, 25th} The atmosphere of the Xi-Biden meeting was positive, with both leaders mentioning their joint victory during World War II, easing market concerns over the 'China-U.S. confrontation narrative.' However, the talks yielded no unexpected breakthroughs, and after the summit, stabilizing factors dissipated, causing markets to refocus on the U.S. bond market crisis. With the Iran issue remaining unresolved and inflation raising the likelihood of consecutive U.S. rate hikes, global risk appetite further declined. The yield on U.S. 30-year Treasury bonds hit a new high over twenty years, sparking market concerns about a resurgence of global financial risks. A-shares were closed today for the Mid-Autumn Festival holiday. Previously, 14 consecutive days of net northbound inflows had provided crucial support for Hong Kong stocks. With northbound flows halted today, Hong Kong's market resilience sharply weakened. The Hang Seng Index's morning decline widened to over 480 points at one stage. As of 11 a.m. today, among the 95 blue-chip stocks, only four rose while the rest all fell.
However, as of 10:30 a.m. Friday, Japan's Nikkei 225 Index still rose 803.93 points, or 1.23%, to 66,317.92 points; South Korea's stock market was closed.
The four major mainland banks formed a market support yesterday (24th), but today, with northbound flows suspended, they declined: ICBC (01398) fell 1.96% to HK$7.51, CCB (00939) dropped 1.81% to HK$9.505, ABC (01288) declined 1.51% to HK$6.51, and BOC (03988) fell 1.08% to HK$5.975.
All major tech and internet stocks fell: Xiaomi (01810) plunged 3.84% to HK$25.56, Alibaba (09988) dropped 2.82% to HK$106.9, Meituan (03690) fell 2.28% to HK$70.6, Kuaishou (01024) declined 3.28% to HK$29.5, and Tencent (00700) dropped 1.19% to HK$433.2.
Chip and AI-related stocks were weak: TianShu Zhixi (09903) plunged 5.41% to HK$120.7, SMIC (00981) fell 1.65% to HK$62.75, Hua Hong (01347) dropped 1.36% to HK$108.9, Zhipu (02513) declined 2.19% to HK$624.5, MiniMax (00100) fell 1.79% to HK$274, and Kingboard Laminate (01888) dropped 0.29% to HK$52. On the news front, Trump said China and the U.S. should maintain dialogue and strengthen cooperation on AI, while Xi Jinping stated that while there is competition in artificial intelligence, there can also be cooperation.
Biotech stocks showed slight rebound momentum, with some outperforming the broader market: Genscript (01548) surged 7.15% to HK$42.58, WuXi Biologics (02269) rose 2.31% to HK$53.1, and WuXi AppTec (02359) gained 2.05% to HK$209.2.
With high odds of U.S. rate hikes and Beijing taking the lead in implementing a policy prioritizing ready-to-sell housing units, mainland property stocks were under pressure. Longfor (00960) fell 4.95% to HK$5.185, China Overseas (00688) dropped 3.34% to HK$12.16, and Run Run Shaw (01109) declined 2.75% to HK$28.26.
Among financial stocks, HSBC (00005) fell 0.57% to HK$156, Standard Chartered (02888) dropped 0.85% to HK$234, BOCHK (02388) declined 0.98% to HK$50.75, while AIA (01299) plunged 3.63% to HK$73.05.
Lenovo Group (00992) rose 1.61% against the market trend to HK$36.6.
*U.S. and European markets show divergence*
U.S. markets showed mixed performance overnight: the Dow Jones Index closed down 161.61 points, or 0.31%, at 51,349; the S&P 500 Index edged down 1.9 points, or 0.02%, to 7,704; while the Nasdaq Composite Index rose slightly by 3.34 points, or 0.01%, closing at 26,939.
European markets generally declined overnight: the STOXX Europe 600 Index fell 0.55% to close at 636.43; the UK's FTSE 100 Index dropped 0.24% to 10,679.99; Germany's DAX Index fell 0.57% to 25,266.53; and France's CAC 40 Index declined 0.52% to 8,081.43.
*Yuen Wai-kei: Trade truce supports Hong Kong's shipping industry*
China and the U.S. agreed to extend their trade truce until January 10 next year. Economist Yuen Wai-kei, in an interview with Economic Information Daily, pointed out that this will benefit Hong Kong's shipping industry, particularly for exports or re-exports to the U.S. for Easter orders in March and April, thus boosting port throughput in the short term until January next year. He added that Hong Kong manufacturers and supply chains would also benefit, including stability in trade financing. However, Yuen noted that Hong Kong's current trade growth is mainly driven by AI, machinery, and chips, goods primarily transported by air. Therefore, the trade truce will have limited overall impact on Hong Kong's trade, though specific shipping sectors will benefit.
However, as of 10:30 a.m. Friday, Japan's Nikkei 225 Index still rose 803.93 points, or 1.23%, to 66,317.92 points; South Korea's stock market was closed.
The four major mainland banks formed a market support yesterday (24th), but today, with northbound flows suspended, they declined: ICBC (01398) fell 1.96% to HK$7.51, CCB (00939) dropped 1.81% to HK$9.505, ABC (01288) declined 1.51% to HK$6.51, and BOC (03988) fell 1.08% to HK$5.975.
All major tech and internet stocks fell: Xiaomi (01810) plunged 3.84% to HK$25.56, Alibaba (09988) dropped 2.82% to HK$106.9, Meituan (03690) fell 2.28% to HK$70.6, Kuaishou (01024) declined 3.28% to HK$29.5, and Tencent (00700) dropped 1.19% to HK$433.2.
Chip and AI-related stocks were weak: TianShu Zhixi (09903) plunged 5.41% to HK$120.7, SMIC (00981) fell 1.65% to HK$62.75, Hua Hong (01347) dropped 1.36% to HK$108.9, Zhipu (02513) declined 2.19% to HK$624.5, MiniMax (00100) fell 1.79% to HK$274, and Kingboard Laminate (01888) dropped 0.29% to HK$52. On the news front, Trump said China and the U.S. should maintain dialogue and strengthen cooperation on AI, while Xi Jinping stated that while there is competition in artificial intelligence, there can also be cooperation.
Biotech stocks showed slight rebound momentum, with some outperforming the broader market: Genscript (01548) surged 7.15% to HK$42.58, WuXi Biologics (02269) rose 2.31% to HK$53.1, and WuXi AppTec (02359) gained 2.05% to HK$209.2.
With high odds of U.S. rate hikes and Beijing taking the lead in implementing a policy prioritizing ready-to-sell housing units, mainland property stocks were under pressure. Longfor (00960) fell 4.95% to HK$5.185, China Overseas (00688) dropped 3.34% to HK$12.16, and Run Run Shaw (01109) declined 2.75% to HK$28.26.
Among financial stocks, HSBC (00005) fell 0.57% to HK$156, Standard Chartered (02888) dropped 0.85% to HK$234, BOCHK (02388) declined 0.98% to HK$50.75, while AIA (01299) plunged 3.63% to HK$73.05.
Lenovo Group (00992) rose 1.61% against the market trend to HK$36.6.
*U.S. and European markets show divergence*
U.S. markets showed mixed performance overnight: the Dow Jones Index closed down 161.61 points, or 0.31%, at 51,349; the S&P 500 Index edged down 1.9 points, or 0.02%, to 7,704; while the Nasdaq Composite Index rose slightly by 3.34 points, or 0.01%, closing at 26,939.
European markets generally declined overnight: the STOXX Europe 600 Index fell 0.55% to close at 636.43; the UK's FTSE 100 Index dropped 0.24% to 10,679.99; Germany's DAX Index fell 0.57% to 25,266.53; and France's CAC 40 Index declined 0.52% to 8,081.43.
*Yuen Wai-kei: Trade truce supports Hong Kong's shipping industry*
China and the U.S. agreed to extend their trade truce until January 10 next year. Economist Yuen Wai-kei, in an interview with Economic Information Daily, pointed out that this will benefit Hong Kong's shipping industry, particularly for exports or re-exports to the U.S. for Easter orders in March and April, thus boosting port throughput in the short term until January next year. He added that Hong Kong manufacturers and supply chains would also benefit, including stability in trade financing. However, Yuen noted that Hong Kong's current trade growth is mainly driven by AI, machinery, and chips, goods primarily transported by air. Therefore, the trade truce will have limited overall impact on Hong Kong's trade, though specific shipping sectors will benefit.
