Understanding the Market | The Hang Seng TECH Index fell more than 3%, Alibaba-W dropped nearly 5%, and Tencent Holdings fell 4%
The Hang Seng TECH Index expanded its decline to over 3% in the afternoon, with SMIC down 7.49%, Alibaba-W down 4.73%, and Tencent Holdings down 4%. The US dollar index rebounded, and the IMF president warned that global stock prices may face the risk of a correction. The adjustment of the financing and securities lending conversion rate for SMIC has attracted attention, with brokerages stating it is a routine operation. Huatai Securities pointed out that the Hong Kong stock market's technology sector rebounded strongly due to the AI trend and still has allocation value in the future
According to Zhitong Finance APP, the Hang Seng TECH Index saw its decline widen to over 3% in the afternoon. As of the time of publication, SMIC (00981) fell by 7.49% to HKD 77.25; Alibaba-W (09988) dropped by 4.73% to HKD 165.2; Tencent Holdings (00700) decreased by 4% to HKD 648.5.
In terms of news, the US dollar index has continued to rebound recently and has now surpassed 99 points. Additionally, on Wednesday local time, IMF President Kristalina Georgieva stated in a speech in Washington that global stock prices have surged due to optimism about AI's potential to enhance productivity, but financial conditions could "suddenly turn," with current valuations "approaching levels seen during the internet boom 25 years ago." A sharp market correction could drag down global growth. Notably, recently, the financing and securities lending conversion rate for SMIC and Bawen Storage has been adjusted to 0, attracting market attention. In response, several brokerages indicated that the adjustments were made according to exchange regulations due to abnormal static price-to-earnings ratios and are considered routine operations.
Huatai Securities' recent research report pointed out that the domestic AI narrative is still unfolding, with China having top companies in many related fields that are globally comparable, most of which are listed in the Hong Kong stock market. Since the beginning of this year, the Hang Seng TECH Index has cumulatively risen by 45%, with nearly a 20% increase since August. The strong rebound in the Hong Kong tech sector is primarily due to the AI trend becoming the main trading theme in the Hong Kong stock market again. During the National Day holiday, technology also performed better, with electronics rising significantly by 3.3%. The firm noted that technology is expected to lead a new round of asset revaluation in the Hong Kong stock market. From a medium-term perspective, Hong Kong tech still holds significant allocation value
