Hong Kong stocks continued their downward trend today, with all three major indices falling over 1% during the session. The Hang Seng TECH Index performed the weakest, dropping nearly 2% in the afternoon.
According to Zhitong Finance APP, Hong Kong stocks continued their downward trend today, with all three major indices falling over 1% during the session. The Hang Seng TECH Index performed the weakest, dropping nearly 2% in the afternoon. By the close, the Hang Seng Index fell by 0.88% or 175.75 points, closing at 19795.49 points, with a total trading volume of 134.07 billion HKD; the Hang Seng China Enterprises Index fell by 0.75%, closing at 7132.69 points; the Hang Seng TECH Index fell by 1.45%, closing at 4414.7 points.
CICC pointed out that last week was a crucial window period for domestic policy, and the market experienced significant fluctuations influenced by expectations, although it ultimately closed higher. However, compared to the previously strong policy expectations, the overall performance was disappointing. Regarding the overseas environment, the Federal Reserve’s FOMC meeting in December is approaching, and the expectation of interest rate cuts may reduce disturbances, but the market is more focused on the subsequent path and tariff impacts. In terms of allocation, assuming moderate and limited domestic policy strength, the current oscillating structure remains the baseline scenario. If there are large fluctuations caused by disturbances such as tariffs, it may instead provide better buying opportunities.
Blue chip performance
China United Network Communications (00762) performed actively throughout the day. By the close, it rose by 2.67%, closing at 6.93 HKD, with a trading volume of 0.284 billion HKD, contributing 1.76 points to the Hang Seng Index. UBS Group had previously indicated that telecom companies will focus more on the profitability and cash flow of enterprise business rather than merely pursuing revenue growth. Additionally, UBS Group believes that although the growth of industry service revenue is slowing, telecom companies are expected to achieve annual profit guidance, thanks to improved operational leverage, demand-driven capital expenditures, and prioritizing profitability as the primary goal of enterprise business.
In other Blue Chip stocks, CHINA RES POWER (00836) rose by 2.13%, closing at 19.18 HKD, contributing 1.23 points to the Hang Seng Index; PetroChina (00857) rose by 1.95%, closing at 5.76 HKD, contributing 3.65 points to the Hang Seng Index; BYD Electronic (00285) fell by 3.59%, closing at 40.3 HKD, dragging down the Hang Seng Index by 1.86 points; GALAXY ENT (00027) fell by 3.34%, closing at 34.7 HKD, dragging down the Hang Seng Index by 4.14 points.
Hot sectors
On the market, most large Technology stocks are in the red, with Alibaba down 1.63% and Tencent down 1.02%; the market is significantly pressured, with popular sectors like Mainland Real Estate, China-Affiliated Brokerage, and Dining continuing their downward trend; the Aviation/airlines Industry is among the biggest losers, with Air China Limited closing down over 7%; the strong US dollar is suppressing international gold prices, and Golden Industrial Concept continues to decline; Macau Casino, Pharmaceutical, Chip, and Autos sectors also saw declines. On the other hand, Bitcoin once again set a historical high, with Cryptos ETF and related concept stocks rising against the trend; the market is re-embracing the High Dividend Concept, with the Telecommunication Sector, Petroleum, and China Mainland Banking generally rising.
1. Cryptos ETF and related concept stocks rose. By the close, BOYAA (00434) was up 5.52%, at 5.73 HKD; LINEKONG (08267) was up 3.28%, at 0.63 HKD; HUAXIA Bitcoin (03042) was up 5.09%, at 13 HKD; BOSHI Bitcoin (03008) was up 4.72%, at 81.26 HKD.
On December 16, Bitcoin touched 106,495 USD per coin intraday, once again setting a historical high. As of the time of publication, Bitcoin rose over 3%, quoted at 105,241 USD. Trump previously stated in a media interview, "We will do great things in the field of Cryptos," pointing out that more and more countries are embracing Cryptos, but "we need to be the leaders." In addition, the Deputy Secretary of the Financial Services and the Treasury Bureau of the Hong Kong SAR government, Chen Haolian, stated last Friday that there are plans to hold a public consultation next year on the licensing system for OTC trading and custodial service providers of virtual assets to promote the sustainable development of different sectors of the virtual asset market.
2. The Telecommunication Sector, Petroleum, and other High Dividend Concepts rose. By the close, China United Network Communications (00762) rose 2.67%, to 6.93 HKD; CHINA TELECOM (00728) rose 2.55%, to 4.83 HKD; Agricultural Bank Of China (01288) rose 2.44%, to 4.19 HKD; PetroChina (00857) rose 1.95%, to 5.76 HKD.
The Director of Morgan Asset Management's China Index and Algo Investment Department, Hu Di, stated that investment opportunities in the Hong Kong stock dividend sector are still worth paying attention to. In the short to medium term, there are mainly three positive factors: capital flow, valuation, and improvement in profit expectations. From a long-term perspective, the downward environment of interest rates and policies encouraging dividends also enhance the allocation value of dividend assets. Galaxy Securities believes that the current valuation of Hong Kong stocks is at a relatively low level, and profitability shows certain resilience. The key to the future market trend still lies in the strength of domestic stability growth policies and the pace of economic fundamental recovery. The firm pointed out that in light of uncertainty from overseas factors, the high dividend strategy in Hong Kong stocks remains attractive, with a focus on Stated-Owned Enterprises Listed on HKEx.
3. Mainland Real Estate continued its downward trend. By the close, YUEXIU PROPERTY (00123) was down 4.86%, at 5.29 HKD; RONSHINECHINA (03301) was down 4.3%, at 0.445 HKD; AGILE GROUP (03383) was down 3.61%, at 0.8 HKD; SUNAC (01918) was down 3.2%, at 2.42 HKD.
The National Bureau of Statistics announced the changes in sales prices of Commodity Residences in November 2024. In November, the sales prices of new Commodity Residences in first-tier cities declined by 4.3% year-on-year, with the decline rate narrowing by 0.3 percentage points compared to last month. Among these, Peking, Guangzhou, and Shenzhen saw declines of 5.3%, 9.9%, and 7.1% respectively, while Shanghai increased by 5.0%. The sales prices of second-hand Residences in first-tier cities fell by 8.0% year-on-year, with the decline rate narrowing by 1.6 percentage points, among which Peking, Shanghai, Guangzhou, and Shenzhen declined by 6.2%, 4.9%, 11.9%, and 9.0% respectively.
Additionally, from December 11 to 12, the Central Economic Work Conference was held. The conference proposed to 'stabilize the real estate and stock markets. Continue to promote the stabilization and recovery of the real estate market, and intensify efforts to implement the renovation of urban villages and dilapidated houses, promoting the establishment of a new model for real estate development.' Tianfeng believes that, overall, the implementation of important meetings will provide a certain boost to expectations, but actual demand improvement still relies on the introduction and implementation of policies.
4. Golden Industrial Concept continues to decline. By the close, CHINAGOLDINTL (02099) fell 3.71% to HKD 37.6; SD GOLD (01787) fell 3.1% to HKD 13.12; LINGBAO GOLD (03330) fell 2.86% to HKD 2.72; Zijin Mining Group (02899) fell 1.49% to HKD 14.54.
In the week of December 13, the European Central Bank lowered interest rates by 25 basis points as expected, removing the restrictive wording on rates. Additionally, the Swiss Franc central bank significantly cut rates by 50 basis points, while the market had anticipated a reduction of 25 basis points. Analysts believe that the consecutive rate cuts by the Swiss and European central banks, along with a strong US dollar, are putting pressure on international gold prices. The expectation of rate cuts, coupled with risk aversion sentiment, has pushed the gold price trading center upwards. The World Gold Council recently stated that after reaching a historical high this year, the pace of gold price increases will slow in 2025.
Popular stocks with abnormal movements
1. JIAYUAN SER (01153) resumed trading this morning. By the close, it rose 27.27% to HKD 0.35.
On April 3, 2023, JIAYUAN SER announced a suspension of trading for failing to release its annual report on time. On December 5, the company reissued a total of four performance reports, including the 2022 yearly performance, 2023 mid-year performance, 2023 yearly performance, and 2024 mid-year performance. The latest results show that in the first half of this year, JIAYUAN SER achieved revenue of RMB 0.434 billion, a year-on-year decrease of 1.73%; profit attributable to shareholders was 63.178 million yuan, a year-on-year decrease of 0.6%.
2. Crystal Technology Holdings-P (02228) performed strongly all day. By the close, it rose 21.32% to HKD 4.78.
Jingtai Technology and Microsoft China announced the signing of a strategic cooperation memorandum, aimed at leveraging cutting-edge technologies such as AI, large models, and Siasun Robot&Automation laboratories for collaboration. They will actively explore the innovative applications of these technologies in Biomedical and materials science, opening a new chapter in scientific research, Education, and innovative applications.
3. XD INC (02400) rebounded significantly. By the close, it rose 12.13% to HKD 26.8.
SWHY pointed out that in 2024, Taptap's domestic monthly active users are rebounding, driven by continuous supply increases in a regulatory easing environment; self-developed hit products are driving platform traffic growth. The logic of Taptap benefiting from industry supply expansion is relatively rare, considering the trend of license issuance, a continued upward trajectory in user scale is expected. In 2024, advertising commercialization is relatively restrained; aside from industry supply drivers, attention is drawn to the user value and gross margin increases brought by enhanced advertising precision.
4. CHINA LIT (00772) has rebounded significantly. At the close, it rose by 5.71%, reaching 29.6 Hong Kong dollars.
Guoyuan International points out that CHINA LIT has a vast content IP, and its ability to elevate its own IP is continuously improving, facilitating cross-product collaboration, from literary works to animation, film and television, games, and related products, maximizing its commercial value potential. The current cultural entertainment market has fully recovered, and the application of AI large model technology will greatly enhance industry productivity, positioning CHINA LIT as a major benefactor of this trend.
