Financial Association News, December 30 (Editor: Feng Yi): Today, the three major indices of Hong Kong stocks collectively fell, with the Hang Seng Index once falling below the 0.02 million point mark during the day, leading to more disturbances in the short-term market.

Let's look at today's market hotspots: With the New Year holiday approaching and market trading being quiet, the Hang Seng Index fluctuates around the 20,000 point mark; the dividend sector continues to play out, with high interest in AI hard technology; the Hong Kong stock new issue market is hot, and the short-term profit effect returns.

[With the New Year holiday approaching and market trading being quiet, the Hang Seng Index fluctuates around the 20,000 point mark]

On the market, most core technology stocks declined today, with NetEase, Meituan, and Baidu falling more than 1%. JD.com, Kuaishou, and Alibaba also dropped, while Xiaomi and TENCENT rose.

In other hotspot directions, the interest in AI-related Concepts continues, and semiconductor chip stocks performed actively. In addition, biomedical stocks generally rose, while industries such as military, education, and machinery saw some increases.

Among the sectors that declined, Macau Casino stocks showed significant downward trends, while the Aviation/airlines Industry weakened due to frequent global incidents recently. Consumer sectors such as Autos, lithium batteries, real estate, dining, and film and television performed sluggishly.

Overall, after the Hang Seng Index recovered the 20,000 point mark last week, the market has once again entered a fluctuation mode. Moreover, due to the back-to-back Christmas and New Year holidays, the main global financial markets will collectively close for New Year this week, which also decreases the trading willingness of market funds.

The Hang Seng Index had a total turnover of 128.56 billion Hong Kong dollars today, which is only at the recent average level. The total short-selling amount was 11.541 billion Hong Kong dollars, with the short-selling funds accounting for 8.98%, dropping to a short-term low.

TENCENT, XIAOMI-W, and Semiconductor Manufacturing International Corporation had the top three short-selling amounts, which were 0.941 billion Hong Kong dollars, 0.805 billion Hong Kong dollars, and 0.561 billion Hong Kong dollars respectively.

[The dividend sector continues to spell out the rising heat of AI hard technology]

In terms of market momentum, the short-term market has developed two main lines: AI technology and the dividend sector, while consumer stocks generally tend towards correction.

The CES 2025 Global Consumer Electronics Show, known as the 'Spring Festival Gala of Technology,' is soon to be held as scheduled in Las Vegas, USA, with some market funds starting to make forward-looking layouts. Popularity is gathering around short-term consumer electronics, semiconductor chips, and AI concept stocks. Meanwhile, the dividend sector continues to be led by traditional stocks in Finance, Oil, Electrical Utilities, Shipping, and other Beginning with Middle Letter listings.

On the news front, Shanghai issued the 'Implementation Plan for Artificial Intelligence to Shape Shanghai,' proposing to strive for a breakthrough of 100 EFLOPS in the city's intelligent computing power scale by the end of 2025, which also boosts the hard technology concept.

On the other hand, today, there were sporadic fluctuations in the Biomedical sector. The CRO leader WUXI APPTEC saw a surge of over 5% at one point, while other biopharmaceutical companies like BEIGENE and EVEREST MED-B also experienced follow-up increases.

According to news from the National Medical Insurance Administration, on December 26, the National Medical Insurance Administration held a seminar on centralized bulk procurement of medicines. As a less favored industry sector recently, if any favorable policies emerge in the future, pharmaceutical stocks may also trigger market trends due to expected differences.

[The market for new stocks in Hong Kong is booming, and short-term profit-making effects are returning.]

In addition, while the short-term performance of A-shares is slightly stronger than that of Hong Kong stocks, it also faces a volume reduction issue, which has limited its impact on Hong Kong stocks. Today's trading volume in the Shanghai and Shenzhen markets was 1.28 trillion, a decrease of 157.7 billion compared to the previous trading day.

Earlier, the State Administration of Foreign Exchange released data showing that there was a net inflow of various types of investment to China in the first three quarters, with a net inflow of 93.1 billion USD in securities investment, maintaining a net inflow for four consecutive quarters, indicating an increase in foreign investment in RMB assets.

Huachuang Securities recently released a report stating that foreign investors generally expect that the Chinese government's policy support and expansion of domestic demand in 2025 will help alleviate economic pressure.

However, unlike the volatile market overall, the short-term new stock market in Hong Kong is thriving, with relatively high profit-making effects. In the past two weeks, only Herbs Generation Group Holdings Limited has broken its issue price, while others have risen above their issue price.

Last week, TENCENT's chairman Lan Foan and the governor of the Foreign Exchange Bureau Zhu Hexin met with the chairman of the Hong Kong Securities and Futures Commission Huang Tianyou and the CEO Julia Leung Fung-yee to exchange views on the development of Hong Kong's financial market and the deepening of financial cooperation between the two places.

Subsequently, companies such as Contemporary Amperex Technology, Tianyue Advanced, and Fengqian Technology announced plans to issue H-shares, all of which are medium to large companies with a market cap exceeding 10 billion.

In the medium to long term, it is becoming a trend for high-quality domestic companies to list in Hong Kong, which may bring a wave of dividends and is worth tracking for investors.