Hong Kong stocks closed (12.03) | The Hang Seng Index closed down 1.28%, interest rate cut expectations boosted the color and Bitcoin concept Lemo Technology (02539), which closed up more than 36% on the first day of listing

The Zhitong Finance App learned that the three major indices of Hong Kong stocks opened low in early trading, and the decline widened further in the afternoon, and the Hang Seng Index fell below the 26,000 mark. At the close, the Hang Seng Index fell 1.28% or 334.32 points to 25760.73 points, with a full-day turnover of HK$164.361 billion. The Hang Seng State-owned Enterprises Index fell 1.68% to 9028.55 points; the Hang Seng Technology Index fell 1.58% to 5534.92 points.

BOC International believes that domestic demand policies are continuing to advance, and the market is concerned about “good start” expectations. After the consolidation and digestion in November, Hong Kong stocks are expected to usher in the New Year's Eve market layout window in December. The market's focus is shifting from the external environment to internal policies, and will focus on the Central Economic Work Conference to be held in mid-December. The initial deployment of the “15th Five-Year Plan” is expected to be further refined and set the tone for 2026.

Blue-chip stock performance

Chuangke Industrial (00669) led the blue chip increase. At the close, it rose 3.15% to HK$94.9, with a turnover of HK$608 million, contributing 6.66 points to the Hang Seng Index. Citi released a research report saying that it has begun a 30-day positive catalytic review of the innovation and technology industry to reflect that the bank expects the Federal Reserve to cut interest rates a total of 3 times until the first quarter of 2026; online sales performance on Thanksgiving Day and Black Friday is strong.

In terms of other blue-chip stocks, Wanzhou International (00288) closed up 1.8% to HK$8.47, contributing 1.97 points; China Life (02628) closed down 3.59% to HK$26.32, dragging down the Hang Seng Index by 11.43 points; China Resources Beer (00291) closed down 2.78% to HK$27.32, dragging down 1.96 points; and Alibaba-W (09988) closed down 2.178% to HK$153.6, dragging down the Hang Seng Index by 51.47 points.

Popular sector aspects

On the market, expectations of the Federal Reserve's interest rate cuts continued to heat up. The precious metals and copper and aluminum sectors rebounded higher, and Bitcoin hit a two-week high, which also led to an increase in some cryptocurrency concept stocks. On the other side, the auto market is getting cold, and auto stocks continue to fall; Sansheng Pharmaceutical's allotment of shares continues to drag down innovative drug concepts. Furthermore, insurance stocks and gaming stocks had the highest declines.

1. Non-ferrous metals stocks had the highest gains. At the close, Innovation Industry (02788) rose 4.14% to HK$18.12; Aluminum (02600) rose 4.09% to HK$11.21; China Daye Nonferrous Metals (00661) rose 4.95% to HK$0.106; Luoyang Molybdenum (03993) rose 2.96% to HK$18.08; and Jiangxi Copper (00358) rose 1.08% to HK$33.66.

On the copper side, the China Copper Raw Materials Joint Negotiation Group (CSPT) recently conducted another study and discussion. The member companies reached a consensus that they will reduce the copper production capacity load by more than 10% in 2026 and improve the fundamentals of copper concentrate supply and demand. On the aluminum side, HSBC released a research report saying that looking forward to the strengthening of the fundamentals of China's aluminum industry next year, downstream demand will continue to grow, and potential supply shortages will become the focus of market attention; aluminum prices are expected to increase 6% year-on-year in 2026.

2. Some cryptocurrency concept stocks reversed the market. At the close, Liberal Arts Interactive (00434) rose 5.19% to HK$4.05; Xinhuo Technology Holdings (01611) rose 2.3% to HK$3.12; and Oke Cloud Chain (01499) rose 1% to HK$0.202.

Expectations that the Federal Reserve will cut interest rates are heating up recently. In today's intraday, Bitcoin is approaching $94,000. It hit a new high of nearly two weeks. Furthermore, Pioneer Group has decided to allow ETF products and mutual funds that mainly hold cryptocurrencies to trade on its large asset management platforms, marking a major reversal of its long-standing cautious stance on cryptocurrencies.

3. Auto stocks continued to decline. At the close, Xiaopeng Automobile-W (09868) fell 4.25% to HK$75.4; GAC Group (02238) fell 2.35% to HK$4.15; and Great Wall Motor (02333) fell 2.03% to HK$14.49.

A number of car companies announced sales figures for November this year, which were mostly flat or declined month-on-month. UBS said that in theory, November is the peak season for the industry. It will be driven by the early car purchase effect before the potential policy declines in 2026, but the market is showing more signs of weakening, which heightens the market's concerns about the demand outlook for the car market in 2026. UBS is becoming more cautious about the short-term outlook for the industry. As market demand weakens faster than expected, risk signals will increase next year.

Popular exotic stocks

1. Two IPOs were listed today. At the close, Lemo Technology (02539) rose 36.25% to HK$54.5; Jinyan Kaolin New Materials (02693) rose 2.19% to HK$7.46.

According to Frost & Sullivan data, in terms of transaction volume, Lemo Technology ranked first in the Chinese machine massage service market for three consecutive years from 2022 to 2024. In terms of revenue, the market share of industrial injuries exceeded 50% in 2024; according to the prospectus, Jinyan Kaolin New Materials specializes in coal-based kaolin in China and has integration capabilities spanning the entire value chain from mining, R&D, processing to production and sales. Based on revenue in 2024, Jinyan Kaolin New Materials is the largest producer of mullite materials for precision casting in China, with a market share of 19.1%.

2. Longpan Technology (02465) large orders are beneficial to stimulate stock prices. At the close, it was up 12.21% to HK$16.54.

Longpan Technology announced that Sun Holdings signed a long-term procurement agreement with Sunwoda for lithium iron phosphate cathode materials, with an estimated sales amount of about 45-5.5 billion yuan. According to the announcement, the agreed purchase volume is for the seller to sell a total of 106,800 tons of lithium iron phosphate cathode materials to the buyer from 2026 to 2030 that meet the specifications agreed by the two parties. The sales price is affected by fluctuations in raw materials, and the two parties will confirm it on a monthly basis in accordance with the terms of the agreement.

3. ZTE (00763) continued yesterday's decline. At the close, it was down 3.61% to HK$32.56.

According to a report by the Science and Technology Innovation Board Daily, ZTE terminals said that the Nubia M153 phone is a collaborative engineering prototype. Doubao dominates the product definition and experience of AI mobile assistants, while Nubia, a subsidiary of ZTE, leads hardware engineering and technology research and development. It is only aimed at people in the industry who need to experience Doubao mobile phones. Doubao's AI technology and capabilities are not popular consumer products.

4. China Financial Insurance (02328) continues to decline. At the close, it was down 4% to HK$17.04.

According to the China Financial Insurance announcement, the company is concerned about market rumors referring to information about the company's executives, and the company is in the process of verifying it. Currently, there is no known reason for the share price or fluctuation. According to reports, on December 1, several media outlets reported that Yu Ze, member of the People's Insurance Group Party Committee, Vice President, and Secretary and President of the China Financial Insurance Party Committee, lost touch and suspected of being taken away for investigation.