The Zhitong Finance App learned that the three major indices of Hong Kong stocks opened lower again and fell rapidly after opening. The Hang Seng Technology Index once fell more than 1.5%. The decline narrowed in the morning and remained in a narrow range in the afternoon. At the close, the Hang Seng Index fell 0.62% or 150.06 points to 24,130.5 points, with a turnover of HK$94.7 billion; the Hang Seng State-owned Enterprises Index fell 0.57% to 8082.4 points; and the Hang Seng Technology Index fell 0.68% to 4194.49 points.
Galaxy Securities pointed out that currently, the main investment line for Hong Kong stocks is short-term repair of trading and structural defense positions. The core conflict in the market is the expectation of liquidity restoration brought about by the return of capital to the south, and the suppression of valuations by high overseas interest rates. During the week, we need to pay attention to the minutes of the Federal Reserve's September monetary policy meeting and the 10-year US bond auction to find clues about interest rate paths. The mid-term reversal has yet to be confirmed. The market lacked trending upward catalysts, and the rebound was more structural.
Blue-chip stock performance
Weichai Power (02338) led the blue chip increase. At the close, it rose 4.68% to HK$30.86, with a turnover of HK$605 million. J.P. Morgan raised the target price of Weichai Power due to the company's good shipping prospects, resilient profit margins, accelerated AI data center business growth, and promotion of solid oxide fuel cell (SOFC) commercialization. The recent correction in stock prices is due to negative market sentiment about the AI data center power supply chain and macroeconomic headwinds. It is not a deterioration in Weichai's business execution or fundamentals.
In terms of other blue-chip stocks, Sun Hung Kai Properties (00016) rose 2.2% to HK$106.7; China Unicom (00762) rose 2.11% to HK$43.5; HSBC Holdings (00005) fell 1.9% to HK$149.9; and Alibaba-W (09988) fell 2.59% to HK$105.4.
Popular sector aspects
On the market, AI hardware stocks collectively declined due to cloud vendor capital expenditure expectations and storage Shuangxiong's quarterly reports. The storage concept stocks, optical communications, and semiconductor sectors registered the highest declines. The WHO downplayed the risk of pneumonic plague in Russia, and yesterday the biomedical sector, which showed impressive results, came back across the board. Some domestic housing stocks surged at the end of the session.
AI hardware stocks collectively declined. At the close, Junzhi Group (01300) fell 5.44% to HK$3.3; Cambridge Technology (06166) fell 2.97% to HK$114.3; GigaYi Innovation (03986) fell 2.66% to HK$431; and Huahong Hongli (01347) fell 2.68% to HK$105.3.
Fangzheng Securities pointed out that the continued expansion of cloud companies' capital investment is an important support for the current round of the AI hardware market, but the increase in investment scale is not always in sync with the rise in stock prices. Whether the market expectation that the cloud factory capital expenditure growth rate is peaking in this round is true may have great guiding significance for the sustainability of the AI hardware stock market in the future. Barclays estimates that the capital expenses of the five major manufacturers have consumed about 90% of their operating cash flow, and they may need to borrow or sell assets in the future to maintain the pace of construction. Furthermore, the quarterly reports of Samsung and Hynix are approaching, and the market is worried that the appreciation of the won will erode the third quarter results.
The biomedical sector has returned across the board. At the close, Kingsley Biotech (01548) fell 12.7% to HK$42.9; Zhaoyan Pharmaceutical (06127) fell 8.39% to HK$29.5; Cansino Biotech (06185) fell 6.4% to HK$38; and Platinum Pharmaceutical-B (02142) fell 6.08% to HK$12.82.
The suspected plague virus infection incident in Russia's Irkutsk region has attracted international attention. After a laboratory researcher suspected to have died due to pneumonic plague infection, Russian government authorities quarantined and tested the relevant contacts. According to the World Health Organization, the current related outbreaks pose a “very low” risk to regions outside the country. Furthermore, Citi released a research report at the end of September, downgraded Moderna's rating from “neutral” to “sell,” and drastically lowered the target price from $80 to $60.
Some domestic housing stocks surged at the end of the session. At the close, R&F Properties (02777) rose 32.3% to HK$0.213; Shimao Group (00813) rose 22.64% to HK$0.065; Xuhui Holdings (00884) rose 16.67% to HK$0.035; and Ocean Group (03377) rose 14.71% to HK$0.039.
Recently, a number of housing enterprises announced the progress of debt restructuring. Green View China Real Estate signed a restructuring support agreement, and the hearing of the liquidation petition was adjourned until April 6, 2027; Agile plans to resolve all types of overseas financial debts totaling about US$5.183 billion through the sale of about 64.6% of the shares after the restructuring; Shimao Group recently received a winding-up petition from a third party with the Hong Kong High Court, and the company said it would oppose it. In addition, the Ministry of Finance and various other ministries and departments issued a notice on implementing interest rate discount policies for residents' home purchase loans. The agency indicated that it is expected to encourage groups in need to release demand for housing purchases.
Popular exotic stocks
White Pigeon Online (02672) saw a higher volume at the end of the session, with a cumulative increase of more than 35% during the month. At the close, it was up 15.28% to HK$74.7.
White Pigeon Online recently announced that on September 28, the board of directors reviewed and approved a proposal to convert 170 million unlisted shares held by five domestic shareholders of the Company into H shares of the Company, accounting for about 52.91% of the total issued share capital of the Company on the date of this announcement. As of the announcement date, the company has not submitted filing documents to the China Securities Regulatory Commission for the full circulation of H shares.
Quanfeng Holdings (02285) reversed the market and rose 5.41% to HK$31.54 by the close.
On September 10, Joseph Galli Jr., the former CEO of Chuangke Industrial, joined Quanfeng Holdings as the new CEO. Over the next two to three weeks, Galli recruited and promoted 4 key senior executives for the North American business. 3 of them worked with I&T's Milwaukee business. Yamato pointed out that Galli is forming its team, replicating the past style of play, and investing in professional user research and construction site marketing to build customer trust and brand penetration.
CGN Mining (01164) is moving high. At the close, it was up 5.23% to HK$2.215.
Google's parent company Alphabet agreed to buy nuclear power from Constellation Energy. The agreement will drive an additional 890 megawatts of reactor capacity. This move was interpreted by the market as a continuation of the tech giant's AI infrastructure capital expenditure narrative. Additionally, the US Department of Energy made conditional loan commitments of up to $4.2 billion to Vistra to upgrade three nuclear power facilities, plan to add 433 megawatts of power generation capacity, and maintain nearly 4 gigawatts of electricity supply.
Salsa International (00178) rallied at the end of the session. At the close, it was up 5.26% to HK$1.2.
Sa Sa Sa International previously announced Yingxi. The profit for the six months ending the end of September is expected to exceed HK$150 million, compared to HK$50.2 million for the same period of the previous year. Mainly due to strong same-store sales in Hong Kong and Macau, as well as the rapid growth in the company's B2BC online sales and profitability. Jefferies believes that Yingxi brought a surprise to the market because it was announced earlier than expected, indicating that the company's net profit recovery continues.