Hong Kong stocks closed (01.07) | Hang Seng Index closed down 0.94%. Science and network stocks strengthened under pressure throughout the day, pharmaceuticals, nickel stocks, etc.

The Zhitong Finance App learned that the three major Hong Kong stock indices fluctuated downward throughout the day, and the decline widened further in the afternoon. At one point, the Hengke Index fell more than 2%. At the close, the Hang Seng Index fell 0.94% or 251.5 points to 26458.95 points, with a full-day turnover of HK$276.134 billion; the Hang Seng State-owned Enterprises Index fell 1.14% to 9138.75 points; and the Hang Seng Technology Index fell 1.49% to 5738.52 points.

Zheshang International pointed out that the fundamentals of the Hong Kong stock market are still weak, the capital environment has declined somewhat, the policy focus is on new quality productivity and expanding domestic demand, and sentiment is picking up in the short term. Goldman Sachs, on the other hand, maintained an “overmatched” rating for China's A shares and H shares. The bank believes that in the current context of profit growth, valuation levels, and generally low investor positions, the risk-reward ratio of Chinese stocks is attractive.

Blue-chip stock performance

Yao Ming Biotech (02269) led the blue chip increase. At the close, it rose 5.92% to HK$36.12, with a turnover of HK$1,954 billion, contributing 11.87 points to the Hang Seng Index. The Zhongtai Securities Research Report pointed out that overseas is gradually entering a rhythm of interest rate cuts, investment and financing improvements are expected to improve marginally, and orders from some companies have already seen a recovery. The bank expects external CRO/CDMO to usher in a “Davis double hit” opportunity where both profits and valuations rise.

In terms of other blue-chip stocks, Cinda Biotech (01801) rose 5.38% to HK$89.05, contributing 11.79 points to the Hang Seng Index; Yao Ming Kangde (02359) rose 4.91% to HK$111, contributing 3.94 points to the Hang Seng Index; Xinyi Glass (00868) fell 3.32% to HK$8.73, dragging down the Hang Seng Index by 1.06 points; and Alibaba-W (09988) fell 3.25% to HK$145.9, dragging down the Hang Seng Index by 65.17 points.

Popular sector aspects

On the market, most of the big tech stocks declined, with Alibaba falling more than 3% and Tencent falling more than 1%. Precious metals dived across the intraday market, and the decline in gold stocks widened in the afternoon; Trump said the US would receive sanctions, and “three barrels of oil” fell; automobiles, brain-computer interfaces, and domestic housing stocks fell one after another. On the other side, pharmaceutical stocks continued their recent gains, led by CRO and innovative drug concepts; nickel prices rose sharply, and related concept stocks surged; major coking coal and coke contracts from major trading firms rose and stopped, and most coal stocks rose; and paper stocks, optical communications, and aluminum stocks improved.

1. Pharmaceutical stocks continued their recent gains. At the close, Rongchang Biotech (09995) rose 12.93% to HK$91.7; Tiger Pharmaceuticals (03347) rose 8.88% to HK$50.5; Yasheng Pharmaceutical-B (06855) rose 8.45% to HK$55.85; and Heplatinum Pharmaceutical-B (02142) rose 8.24% to HK$13.27.

According to the latest data from the China Drug Administration, in 2025, 76 innovative drugs have been approved for marketing in China, far exceeding the 48 in 2024, a record high. Furthermore, in 2025, the total amount of foreign authorized transactions for innovative drugs in China exceeded 130 billion US dollars, and the number of authorized transactions exceeded 150, which also reached a record high. Also, the 2026 JPM Healthcare Conference will be held on January 12-15 in San Francisco, USA. Societe Generale Securities believes that looking ahead to 2026, it is expected that industry conferences (clinical data progress), major BD deals, and technological breakthroughs will continue to bring positive catalysts to the industry.

2. Nickel stocks are trending strongly. At the close, Xinjiang Xinxin Mining (03833) rose 12.28% to HK$3.2; Zhongwei New Materials (02579) rose 10% to HK$37.4; and Liqin Resources (02245) rose 4.92% to HK$25.16.

The London Metal Exchange (LME) three-month nickel surged more than 9% on Tuesday, hitting a high of $18,545 per ton, the biggest intraday gain in more than three years. Over the past two weeks, nickel prices have accumulated a cumulative increase of more than 20%. According to Fangzheng Securities Research Report, according to financial news, Indonesian Vale's nickel mining activities were suspended because the annual work plan was not officially approved. Earlier, the Indonesian Nickel Miners Association said that the government plans to cut nickel mining quotas in 2026, and the 2026 nickel mining quota target is about 250 million tons. Fangzheng Securities believes that if the Indonesian government reduces nickel ore quotas, it is expected to accelerate the rebalancing of supply and demand in the nickel industry.

3. Paper stocks had the highest gains. At the close, Nine Dragons Paper (02689) rose 8.97% to HK$6.8; Lee & Man Paper (02314) rose 6.92% to HK$3.09; and Chenming Paper (01812) rose 3.85% to HK$0.81.

Recently, a number of paper companies such as Nine Dragons, Wuzhou Special Paper, and Shanying Paper have released price adjustment information. Among them, the Quanzhou base of Nine Dragons Paper will increase the price of all cow cards and corrugated paper at the Quanzhou base by RMB 50 per ton starting January 5, 2026. Nine Dragons Paper's Dongguan base. Starting from January 4, 2026, the price of recycled cow cards at the Dongguan base will increase by RMB/HKD 50 yuan/ton (USD7/ton). Furthermore, a number of large paper companies have clearly stated that they will actively cut production or slow down the pace of production expansion in the future, and the pressure on the industry to add new production capacity will be reduced markedly.

4. Coal stocks are mostly higher. At the close, Shougang Resources (00639) rose 5.98% to HK$3.19; China's Qinfa (00866) rose 5.92% to HK$3.04; Yankuang Energy (01171) rose 5.86% to HK$10.66; and China Coal Energy (01898) rose 4.9% to HK$10.91.

On January 7, the main coking coal and coke contracts of major commercial companies went up and down. Guohai Securities pointed out that looking ahead to 2026, “the balance is turning slightly”, the supply and demand relationship in the industry is expected to improve. Combined with policy support, it is expected that the coal price center may rise. It is expected that the coal price center in Beigang will be around 750 yuan, and the average price of main coking coal in Beigang will be around 1,550 yuan, so the profitability of the industry is expected to be repaired to a certain extent. At the same time, in the context of the era of low interest rates, the high dividend value of the coal sector is an important allocation point for institutions. Leading coal companies present five characteristics, including “high profit, high cash flow, high asset quality, high dividends, and high barriers.” It is recommended to grasp the value attributes of the coal sector at a low level.

5. Optical communications concept stocks rebounded. At the close, Changfei Optical Fiber Cable (06869) rose 6.75% to HK$52.35; Cambridge Technology (06166) rose 4.03% to HK$89.

Overnight, the US optical communications concept stock Lumentum surged more than 11%, and Coherent rose more than 4%. Additionally, Nvidia CEO Hwang In-hoon presented Nvidia's next-generation AI platform Rubin at the CES speech. The reasoning power is 5 times that of Blackwell. It has achieved a significant jump in reasoning costs and training efficiency, and the first batch of customers will be delivered in the second half of 2026. According to some analysts, the platform is optimized through multi-chip heterogeneous collaboration, and the performance and quantity requirements for core components such as high-end PCBs and optical modules are further improved. It is expected to promote the upstream supply chain to achieve a double increase in ASP and shipment volume, and activate the computing power sector boom cycle.

Popular exotic stocks

1. Yadi Holdings (01585) announced Earnings, up 4.63% to HK$11.74 at the close.

On January 6, Yadi Holdings announced that the Group expects to record a net profit of not less than RMB 2.9 billion for the year ended December 31, 2025, while the net profit recorded for the same period in 2024 is RMB 1.27 billion. The expected increase in net profit is mainly due to increased sales of electric two-wheelers and optimized product structure.

2. Jinli Permanent Magnet (06680) was active throughout the day and closed up 3.65% to HK$20.16.

According to a report by China Daily, reliable sources said that in view of Japan's recent poor performance, the Chinese government is considering tightening the export license review for medium and heavy rare earth-related items listed on April 4, 2025 in a targeted manner. Earlier, the Ministry of Commerce announced that according to the “Export Control Law of the People's Republic of China” and other relevant provisions of laws and regulations, it is prohibited to export all dual-use items to Japanese military users, military use, and any other end user use that helps enhance Japan's military strength.

3. Polar Rabbit Express-W (01519) hit a new high, rising 3.39% to HK$11.58 at the close.

Jitu Express announced that in the fourth quarter of 2025, the company achieved an overall package volume of 8.46 billion pieces, an increase of 14.5% over the previous year, with an average daily package volume of 92 million. In 2025, the company's total package volume broke through the 30 billion package mark for the first time, reaching 30.13 billion pieces, an increase of 22.2% over the previous year. During the period, Jitu achieved steady growth as a whole, mainly due to strong business performance in Southeast Asia and new markets, as well as the steady contribution of the Chinese market.

4. The stock price of GF Securities (01776) came under pressure and closed down 4.09% to HK$19.

Before the market on January 7, GF Securities announced that it plans to issue 219 million new H shares through placement agents, with a net proceeds of the placement of about HK$3,959 million; and issue bonds with a total principal amount of HK$2.15 billion that can be converted into the company's H shares. In total, the above placement refinancing and convertible bonds raised a total of HK$6.109 billion. GF Securities stated that the company plans to increase capital to overseas subsidiaries to support the Group's international business development.