Financial Services Association, November 11 (Editor: Hu Jiarong) Today, the three major indices of Hong Kong stocks have collectively weakened. At the close, the Hang Seng Index fell 1.45% to close at 20426.93 points; the Technology Index fell 0.35% to close at 4651.71 points; and the State-owned Enterprises Index fell 1.42% to close at 7355.57 points.

Note: The performance of the Hang Seng Index

Regarding the adjustment of the Hong Kong stock market, Huatai Securities pointed out that on November 8, the General Office of the Standing Committee of the National People's Congress held a press conference. The main incremental policy was to add a local special debt limit of 6 trillion yuan to replace hidden local stock debt. Considering that before the meeting, all parties in the market did not agree on this, and it is not ruled out that the policy will fall short of the expectations of some foreign investment continuing to flow into Greater China's assets.

They also believe that the “924” policy package mitigated investors' concerns about the tail risk of real estate, and also reduced the PBLF discount between China and other emerging markets from 30% to around 15%. Currently, the pricing of Hong Kong stocks still includes certain considerations of medium- to long-term factors such as the conversion of old and new kinetic energy, the business environment of private enterprises, etc., or is at a neutral level. If there is a significant short-term market adjustment, it may be a good opportunity to step in.

Today's market

Judging from market performance, auto retail and cryptocurrency stocks and related ETFs showed an upward trend. Meanwhile, brokerage firms and real estate stocks showed weak performance.

Zhongsheng Holdings boosts the trend of related individual stocks with the “Huawei Smart Car Choice” concept

Among automobile retail stocks, Zhongsheng Holdings (00881.HK), Zhengtong Auto (01728.HK), and Meidong Auto (01268.HK) rose 21.41%, 16.10%, and 12.40% respectively.

Note: Performance of auto retail stocks

In terms of news, a blogger posted on Weibo a few days ago that Zhongsheng Group fully embraces new energy and has obtained 50 (and 48) Huawei smart car licenses. According to public information, Zhongsheng Group is one of the leading national automobile dealer groups in China, focusing on operating luxury and high-end brand portfolios, including brands such as Mercedes-Benz, Lexus, Audi, BMW, Volvo, Jaguar Land Rover, Toyota, Nissan, and Honda.

Cryptocurrency continues to rise, Eurotech Cloud Chain rose more than 14%

Among cryptocurrency concept stocks, Ouke Cloud Chain (01499.HK), OSL GROUP (00863.HK), and Meitu (01357.HK) rose 14..44%, 8.95%, and 7.64% respectively.

Note: The performance of cryptocurrency concept stocks

In terms of news, Bitcoin broke through the $80,000 mark for the first time last Sunday and continued to rise on Monday, reaching a record high of 81,850.50 US dollars/coin.

Note: Bitcoin's performance

The recent rise in Bitcoin is indeed related to the US election. After Trump announced his victory in the 2024 US presidential election, the market reaction to Bitcoin was interpreted as a so-called “Trump deal.”

Trump has expressed support for digital assets during his campaign and promised that if he returns to the White House, he will push the US to become a global cryptocurrency capital, establish strategic bitcoin reserves, and appoint digital asset-friendly regulators. These policy propositions have strengthened the market's confidence in the future development of Bitcoin, and it is expected that under a more friendly regulatory environment, the digital asset market will usher in more room for development.

Also stimulated by this news, Hong Kong digital currency ETFs also showed a rise. By the close, Huaxia Ether (03046.HK), Harvest Ether (03179.HK), and Harvest Bitcoin (03439.HK) were up 7.82%, 7.46%, and 6.85% respectively.

Note: The performance of Hong Kong digital currency ETFs

The majority of brokerage stocks fell back, and Xingzheng International fell more than 7%

Among brokerage stocks, Xingzheng International (06058.HK), Shenwan Hongyuan (06806.HK), and CITIC Securities (06030.HK) fell 7.27%, 3.63%, and 3.56% respectively.

Note: The performance of brokerage stocks

In terms of news, on the morning of November 11, brokerage firms such as Haitong Securities and Cathay Pacific Junan announced that starting November 11, the company will adjust the RMB margin interest rate standard for customers, and the adjusted RMB margin interest rate standard will be 0.10% (annualized). Some analysts believe that the reduction in margin account deposit interest rates will have little impact on individual customers, but because the number of customers is huge, it will have an impact on brokers' margin rate difference income.

Most real estate stocks weakened, Sunac China fell more than 9%

Among real estate stocks, Sunac China (01918.HK), R&F Real Estate (02777.HK), and Shimao Group (00813.HK) fell 9.48%, 9.26%, and 8.55% respectively.

Note: Performance of real estate stocks

Judging from the chart above, most real estate stocks have weakened, but Minister of Finance Lan Foan said recently that currently, relevant tax policies supporting the healthy development of the real estate market have been submitted for approval in accordance with procedures and will soon be introduced. The Ministry of Finance is cooperating with relevant departments to study and formulate policy rules to support the recycling of vacant land stocks, new land reserves, and the acquisition of existing commercial housing for affordable housing.

Southbound funding

Net capital inflows to the South continued today, amounting to HK$9.865 billion. Since this year, the cumulative inflow has been HK$604.9 billion.

Note: The performance of southbound funding

Changes in individual stocks

[Huahong Semiconductor rose more than 7%, agency says demand for 12-inch wafers is still strong]

Huahong Semiconductor (01347.HK) rose 7.21% to close at HK$24.55. Damo released a research report saying that the pace of increase in wafer prices in Huahong in the second half of 2025 was weaker than expected, mainly due to the weak terminal demand environment. However, Huahong's investment in a new 12-inch fab is progressing smoothly and may help increase the overall average sales price. As for production capacity expansion, it is likely that it will continue to be its revenue driver in FY2025.

[Ganfeng lithium industry rose more than 6%, agency says global lithium oversupply is gradually narrowing]

Ganfeng Lithium (01772.HK) rose 6.62% to close at HK$24.15. According to the news, CITIC Securities released a report saying that the global lithium oversupply is gradually narrowing, and short-term supply and demand have improved. The report points out that the drop in lithium prices has caused major lithium production regions around the world to fall into losses and reduce production, and the pace of commissioning of projects under construction has also slowed sharply.