The Zhitong Finance App learned that Hong Kong stocks followed the decline from the periphery today. The three major indices all fell by more than 1% in the intraday period, then suddenly picked up at the end of the session. The Hengke Index turned red for a while, then the China Index successfully turned upward. At the close, the Hang Seng Index fell 0.12% or 23.43 points to 19823.45 points, with a full-day turnover of HK$184.618 billion; the Hang Seng State-owned Enterprises Index rose 0.05% to 7130.93 points; and the Hang Seng Technology Index fell 0.03% to 4455.67 points.

CITIC Securities believes that the Hong Kong stock market may experience a reversal in 2025. First, the current valuation advantage of Hong Kong stocks on a global level is remarkable, and the income-side problems caused by China's price pressure are expected to gradually ease. Second, in the first ten months of 2024, there has been a cumulative inflow of nearly HK$630 billion southbound, and the overall voice of Chinese investors compared to foreign investors has greatly increased, especially in the small to medium market capitalization sector. Finally, in the context of the gradual implementation of a series of domestic policies, investors are expected to change.

Blue chip stock performance

Zhongsheng Holdings (00881) bucked the trend and rose. At the close, it rose 7.59% to HK$18.42, with a turnover of HK$0.853 billion, contributing 1.81 points to the Hang Seng Index. Zhongsheng Holdings announced that it has signed a preliminary negotiation agreement with Celis, agreeing to conduct further negotiations on cooperative distribution of the latter's NEVs. According to the Citigroup report, considering the new data that each store of the AITO (AITO) brand sells 200 vehicles per month, the bank raised Zhongsheng's 2025 and 2026 revenue forecasts by 10% and 18% to 206.6 billion yuan and 231.5 billion yuan, respectively, and the net profit forecast was raised 25% and 24% to 5.79 billion yuan and 8.35 billion yuan, respectively.

In terms of other blue-chip stocks, China Unicom (00762) rose 3.5% to HK$6.5, contributing 2.22 points to the Hang Seng Index; Lenovo Group (00992) rose 2.43% to HK$9.7, contributing 3.04 points to the Hang Seng Index; Yao Ming Kangde (02359) fell 4.1% to HK$54.95, dragging down 1.3 points; Master Kong Holdings (00322) fell 3.25% to HK$10.72, dragging down the Hang Seng Index by 1.16 points.

In terms of popular sectors

On the market, large technology stocks had mixed ups and downs. Tencent closed the previous record. Double 11 e-commerce GMV grew strongly year-on-year, and Kuaishou pulled up more than 4% at the end of the session. At the opening of the Global 6G Development Conference, the three major operators bucked the trend today; rare earth concept stocks were strong; Jinli Permanent Magnet and China's rare earths all closed up more than 3%; current prices of lithium carbonate continued to rebound, and lithium industry stocks performed well. On the other side, China Education Holdings experienced a sharp drop of 17%, leading the decline in education stocks; yesterday, stronger pharmaceutical stocks generally retreated; Bitcoin dived after rising 0.09 million dollars; cryptocurrency ETFs and related concept stocks pulled back; domestic housing stocks, consumer stocks, etc. continued to be sluggish.

1. Telecom stocks bucked the trend and rose. At the close, China Unicom (00762) rose 3.5% to HK$6.5; China Telecom (00728) rose 2.58% to HK$4.38; and China Mobile (00941) rose 1.3% to HK$70.

The 2024 Global 6G Development Conference was held in Songjiang District, Shanghai from November 13 to November 14, 2024. The theme of the conference was “Leading a New Journey, Looking at the Frontier of 6G Standards”. The conference will showcase the latest achievements of China and Shanghai in 6G (6th generation mobile communication technology) innovation and development, attract innovative enterprises in the mobile communication field from home and abroad to develop in China and Shanghai, promote a better convergence of superior resources upstream and downstream of the industrial chain, and help develop cutting-edge 6G technology, set standards, and cultivate future industries.

Guoyuan International pointed out that the traditional business base of the three major operators is stable and will continue to provide stable cash flow in the future; with the spread of AI technology and the emergence of other new technologies and new business forms, the new momentum of operators in the digital industry will also continue to grow, thereby driving the overall business volume to continue to grow. Meanwhile, the three major operators are continuing to increase their dividend payout ratio. According to current stock prices, the dividend rate is expected to rise further from the current level of 6%.

2. Lithium stocks performed brilliantly. At the close, Ganfeng Lithium (01772) rose 6.38% to HK$25.85; Tianqi Lithium (09696) rose 3.83% to HK$29.8.

Recently, the current price of lithium carbonate continued to rebound. On November 13, the main contract for lithium carbonate closed up by more than 6% to 86,500 yuan/ton, for the 3rd day in a row. Furthermore, according to data released by the Shanghai Steel Federation, today's battery-grade lithium carbonate price is 3,000 yuan higher than the previous day, with an average price of 0.08 million yuan/ton, up 6,700 yuan/ton from the low of 73,300 yuan/ton on October 25. CITIC Securities said that the drop in lithium prices in the third quarter led to an increase in overseas lithium mine production cuts, and some mining companies sold assets to return funds. The Australian lithium mine has already begun to lose cash, and it is not ruled out that more lithium mine production will be cut in the future.

3. Cryptocurrency ETFs and related concept stocks pulled back. At the close, Xiongan Technology (01647) fell 6.5% to HK$0.115; OSL GROUP (00863) fell 4.93% to HK$7.13; Harvest Ether (03179) fell 6.8% to HK$7.68; and Huaxia Ether (03046) fell 6.07% to HK$7.655.

The price of Bitcoin suddenly dived after breaking through 0.09 million dollars a few days ago, and once fell close to 5,000 US dollars in just 3 hours. Market data shows that on November 12, Bitcoin reached a high of 90070.1 US dollars, then fell all the way down, once falling to 85,500 US dollars. As of press time, Bitcoin was reported at $87,500. Previously, stimulated by Trump's victory, the price of Bitcoin continued to hit new highs. However, market analysts pointed out that there is still uncertainty about whether Trump will deliver on his cryptocurrency promises in the election campaign, and no real progress has been made. Traders need to be aware of the risks as future changes are likely to occur.

Popular volatile stocks

1. Hongteng Precision (06088) improved after the results. At the close, it was up 21.71% to HK$3.14.

Hongteng Precision announced results for the nine months ended September 30, 2024. Revenue and other operating income were US$3.241 billion, up 9.91% year on year; net profit from continuing operations was US$0.101 billion, up 117.79% year on year. In the third quarter alone, net profit from continuing operations was 68.005 million US dollars, up 23.86% year on year; revenue and other operating income were 1.174 billion US dollars, up 0.83% year on year.

2. Liberal Arts Interactive (00434) was strong throughout the day. At the close, it was up 14.29% to HK$2.88.

Liberal Arts Interactive issued an announcement yesterday disclosing cryptocurrency holdings. As of the announcement date, the Group has held 2,641 bitcoins (BTC), with a total cost of about US$0.143 billion, with an average cost of about US$5,4027 per BTC; it has held 15,445 Ether (ETH), with a total holding cost of about US$42.578 million, and an average cost of about US$2,756 per ETH.

3. Dongyangguang Changjiang Pharmaceutical (01558) performed well. At the close, it was up 4.12% to HK$9.35.

Dongyangguang Changjiang Pharmaceutical announced that it has reached a licensing agreement with Apollo to grant Apollo exclusive development and commercialization rights for the HEC88473 project independently developed by the company outside of Greater China, while retaining development and commercialization rights in Greater China. Under the agreement, the company is expected to collect up to $0.938 billion during the validity period of the agreement, including a $12 million down payment and up to $0.926 billion in development, regulatory and commercial milestone payments.

4. The stock price of China Education Holdings (00839) fell sharply. At the close, it was down 17.47% to HK$3.92.

According to the Macquarie Research Report, the company expects net profit of 0.429 billion yuan (as of August 31) to reach 0.429 billion yuan - -0.59 billion yuan (same below), which means that the net loss for the second half of the year is 0.598 billion yuan - -0.768 billion yuan, lower than the bank's forecast, and also down from 0.505 billion yuan in net profit for the second half of fiscal year 2023. Also, the growth of full-time students fell short of expectations. Focus on the details of the annual results and whether dividends will be maintained.