"Hong Kong Stocks" Hang Seng Index drops 535 points in half a day, AI concept stocks decline, Baidu falls over 6%

U.S. stocks initially rose and then fell after NVIDIA announced better-than-expected quarterly results and earnings guidance, while Hong Kong stocks declined in early trading following the external market. The Hang Seng Index opened down 375 points and the decline widened, dropping as much as 656 points to a low of 25,178 points, closing down 535 points or 2.1% at 25,300 points; the National Index fell 195 points or 2.1% to 8,947 points; the Hang Seng Tech Index dropped 173 points or 3.1% to 5,401 points. The total turnover of the market for the half day was HKD 150.474 billion.

AI concept stocks fell. Alibaba (09988.HK) and Baidu (09888.HK) dropped 4.1% and 6.6%, respectively, Meitu (01357.HK) fell 5.4%, and GDS Holdings (09698.HK) decreased by 3.6%. In the chip sector, SMIC (00981.HK) and Hua Hong Semiconductor (01347.HK) each fell 5.3%, while chip equipment stock ASMPT (00522.HK) dropped 5.8%. In telecommunications infrastructure-related stocks, ZTE (00763.HK) and Changfei Optical Fiber (06869.HK) fell 4% and 5.8%, respectively. Medical stocks expected to benefit from AI performed weakly, with medical platform JD HEALTH (06618.HK) and Alibaba Health (00241.HK) down 7.2% and 4.8%, respectively, and Ping An Good Doctor (01833.HK) down 3.5%. Pharmaceutical stocks such as Innovent Biologics (01801.HK), Kingsoft (01548.HK), WuXi AppTec (03759.HK), and WuXi Biologics (02269.HK) fell between 4.8% and 5.4%, while China National Pharmaceutical Group (01177.HK), WuXi AppTec (02359.HK), and CSPC Pharmaceutical Group (01093.HK) dropped between 3.8% and 4.4%.

In other tech stocks, Tencent (00700.HK) fell 1.6% to HKD 611. Xiaomi (01810.HK) dropped 0.8%, while JD (09618.HK), Kuaishou (01024.HK), and Meituan (03690.HK) fell between 2.6% and 3.1%. New Oriental (09901.HK), Bilibili (09626.HK), and Chinasoft International (00354.HK) dropped between 3.6% and 4%, and Tencent Music (01698.HK) fell 6%. NetEase (09999.HK) reported a 27% increase in non-GAAP net profit for the third quarter, in line with expectations, but the stock fell 2.7% along with the market.

In the automotive sector, BYD (01211.HK) fell 2.2%, XPeng (09868.HK), Leapmotor (09863.HK), and Seres (09927.HK) dropped between 3.4% and 4.5%, while Nio (09866.HK) fell 5.7%. Battery stock CATL (03750.HK) dropped 4.3%, while autonomous driving concept stocks Pony.ai (02026.HK) and Hesai (02525.HK) fell 8.6% and 10.3%, respectively. Lithium stocks Ganfeng Lithium (01772.HK) and Tianqi Lithium (09696.HK) each fell over 10% Macau is expected to generate MOP 236 billion in gaming revenue next year, with gaming stocks such as Galaxy Entertainment (00027.HK) falling 3.2%, Melco International (00200.HK), MGM China (02282.HK), Sands China (01928.HK), and Wynn Macau (01128.HK) dropping between 3.9% and 5.4%. In terms of consumer demand stocks, Trip.com (09961.HK), China Feihe (06186.HK), Li Ning (02331.HK), Haidilao (06862.HK), and Tobo (06110.HK) fell between 2.5% and 2.7%, China Duty Free Group (01880.HK) dropped 2.9%, while China Southern Airlines (01055.HK), Pop Mart (09992.HK), and China Eastern Airlines (00670.HK) decreased between 3.7% and 4.5%.

In the financial sector, HSBC (00005.HK) fell 1.3%, Hong Kong Exchanges and Clearing (00388.HK) and AIA (01299.HK) dropped 1.9% and 2.5%, respectively. Brokerage stocks such as Guotai Junan (02611.HK), CITIC Securities (06030.HK), CITIC Construction Investment (06066.HK), and GF Securities (01776.HK) fell between 3.6% and 3.8%.

In other stocks, New World Development (00017.HK) and Link REIT (00823.HK) dropped 4.7% and 7.3%, respectively, while Xiexin Technology (03800.HK), Flat Glass (06865.HK), Xinte Energy (01799.HK), and Xinyi Solar (00968.HK) fell between 5% and 6.4%