Hong Kong Stock Midday Review | Hang Seng TECH Index fell 1.00%, CATL dropped 8.20%, Tianneng Advanced rose against the trend by 7.78%

Market Overview

▪ On November 20, the three major indices of the Hong Kong stock market showed mixed performance. The Hang Seng Index rose by 0.14%, closing at 25,867.87 points, showing relative strength; the Hang Seng China Enterprises Index fell by 0.09%, closing at 9,143.08 points, indicating significant market divergence; the Hang Seng TECH Index faced pressure, dropping by 1.00%, closing at 5,550.67 points, reflecting considerable pressure on the technology growth sector.

▪ A total of 915 stocks in the entire market rose, 971 fell, and 1,238 remained flat. Overall market sentiment remains weak, with more stocks declining than rising, and capital showing a risk-averse tendency, responding significantly to adjustments in core assets.

Sector Performance

▪ The hardware, storage, and peripherals sector faced pressure throughout the day, showing significant declines, mainly influenced by adjustments in leading stocks, indicating that capital is becoming cautious about the short-term outlook for high-valuation technology sectors, with leading stocks experiencing pullbacks and notable capital outflows in the sector.

▪ The retail sector was volatile, with some quality stocks under pressure, reflecting insufficient market confidence in the consumer sector. Overall capital flows in the sector were divergent, with some funds showing clear wait-and-see sentiment.

▪ The internet content and information sector experienced overall volatility, with adjustments in technology leaders. Core assets like Tencent Holdings showed slight declines, and there were clear signs of capital reallocating within the sector, with a preference for high-growth, low-valuation targets.

Macroeconomic Background

▪ Recently, the unemployment rate in Hong Kong slightly rose to 3.9%, indicating ongoing pressure on economic recovery. Import and export growth rates have retreated, and the trade deficit continues, revealing the impact of external demand.

▪ The overall CPI is mild, with inflation levels remaining stable. Macroeconomic data reflects a slowdown in consumption and foreign trade momentum. Market investors need to pay attention to subsequent policy stimuli and changes in global demand, with sentiment being cautious and structural opportunities becoming prominent.

Popular Stocks

▪ China Resources Power rose by 6.89%, with a transaction volume of HKD 385 million. Although there is no recent news, capital is clearly focused on the defensive attributes of public utilities, becoming a safe haven for funds.

▪ Guofu Hydrogen Energy rose by 2.63%, with a transaction volume of HKD 228 million. Market capital is paying attention to opportunities in the emerging hydrogen energy industry, but current upward momentum is limited.

▪ Longpan Technology fell by 2.57%, with a transaction volume of HKD 110 million. There is a clear short-term capital outflow, reflecting pressure on some high-elasticity growth directions.

▪ Tianyue Advanced surged against the trend by 7.78%, with a transaction volume of HKD 123 million, becoming a structural highlight in the market. Capital favors its growth expectations, with active inflows during the trading session.

▪ CATL fell sharply by 8.20%, with a transaction volume reaching HKD 4.514 billion. During the session, approximately 77.46 million restricted shares were unlocked, leading to significant selling pressure. This was due to the unlocking of restricted shares for cornerstone investors, directly causing the stock price to hit the largest intraday drop in over a month, with substantial capital outflow, becoming one of the main reasons for the market decline.

Top 10 Market Transaction Volumes

▪ Xiaomi Group -W, latest price HKD 37.44, down 3.55%, transaction volume HKD 8.42 billion ▪ Alibaba -W, latest price HKD 155.20, down 0.77%, turnover HKD 5.989 billion

▪ Tencent Holdings, latest price HKD 619.00, down 0.56%, turnover HKD 4.526 billion

▪ Contemporary Amperex Technology Co., Limited, latest price HKD 470.00, down 8.20%, turnover HKD 4.514 billion

▪ Semiconductor Manufacturing International Corporation, latest price HKD 72.95, down 0.07%, turnover HKD 2.976 billion

▪ Kuaishou -W, latest price HKD 64.65, up 1.81%, turnover HKD 2.028 billion

▪ XPeng -W, latest price HKD 81.80, down 4.55%, turnover HKD 1.820 billion

▪ Hua Hong Semiconductor, latest price HKD 78.45, down 2.49%, turnover HKD 1.768 billion

▪ Pop Mart, latest price HKD 202.20, down 2.13%, turnover HKD 1.723 billion

▪ Ganfeng Lithium, latest price HKD 59.70, up 0.67%, turnover HKD 1.250 billion