Hong Kong stocks closed (09.24) | Hang Seng Index closed down 0.29%, oil stocks reversed the market and rose under pressure from non-ferrous, pharmaceuticals, technology, etc.
The Zhitong Finance App learned that Iran's tough attitude and the rebound in oil prices combined with the unexpected strengthening of US PMI data, US treasury bonds experienced a new round of sharp sell-off, and the three major Hong Kong stock indices are sluggish today. At the close, the Hang Seng Index fell 0.29% or 72.99 points to 24761.13 points, with a full-day turnover of HK$159.552 billion; the Hang Seng State-owned Enterprises Index fell 0.09% to 8266.01 points; and the Hang Seng Technology Index fell 0.41% to 4361.13 points.
Yi Yi, chief macroeconomist at Huatai Securities, judged that the direction of global central banks tightening monetary policy has not changed; this will limit the valuation of Hong Kong stocks. Therefore, balanced allocation needs to sink further from the industry level to the structural level. Among them, dividend assets are still an allocation base, and it is recommended to add more cost-effective directions such as petroleum, petrochemicals, gas, etc.; innovative drugs and CXO leaders can continue to hold them, but beta flexibility in related sectors is limited, so individual stocks need to be selected and take-profit conditions set.
Blue-chip stock performance
CNPC (00857) is active against the market. At the close, it rose 2.83% to HK$9.615, with a turnover of HK$682 million. The situation in the Middle East continues to be tense, and the settlement price of Brent crude oil has risen to 103 US dollars, ending the previous five consecutive days of decline. Speaking at the UN General Assembly, Iranian President Masood Pezzahizyan said that while Iran is still restricted by sanctions, the country will not allow ships to freely pass through the Strait of Hormuz.
In terms of other blue-chip stocks, CNOOC (00883) rose 2.14% to HK$23.84; ICBC (01398) rose 1.59% to HK$7.66; Luoyang Molybdenum (03993) fell 3.70% to HK$15.08; and Huahong Hongli (01347) fell 3.33% to HK$110.4.
Popular sector aspects
On the market, Technet shares had mixed ups and downs. After the Xiaomi press conference, they reversed the market and rose 1.53%, while Tencent fell 0.59%. The situation in the Middle East has repeatedly risen by three barrels of oil; individual robot concepts have strengthened, and Galax Technology has risen nearly 9%. On the other side, technology stocks such as storage and semiconductors were under pressure; PMI surpassed expectations for interest rate hikes, and gold and non-ferrous stocks generally fell; biomedical stocks, lithium batteries, and domestic housing stocks all weakened.
“Three barrels of oil” rose collectively. At the close, CNPC shares (00857) rose 2.83% to HK$9.615; CNOOC (00883) rose 2.14% to HK$23.84; and China Petroleum & Chemical (00386) rose 0.90% to HK$4.485.
Speaking at the UN General Assembly, Iranian President Masood Pezzahizyan said that while Iran is still restricted by sanctions, the country will not allow ships to freely pass through the Strait of Hormuz. Bank of America strategists said that the average price of Brent crude oil is expected to be around $80 per barrel in 2027, but at the same time, they also point out the challenges brought about by declining strategic reserves and severe shortages in the market in recent years. The bank said that if Iran continues to consume stocks after a long period of unresolved war, oil prices may rise above $150 per barrel in the future.
Memory chips and semiconductor stocks are under pressure. At the close, GigaYi Innovation (03986) fell 5.12% to HK$489.6; Huahong Hongli (01347) fell 3.33% to HK$110.4; Changfei Optical Fiber Cable (06869) fell 4.34% to HK$187.2; and Cambridge Technology (06166) fell 4.31% to HK$117.8.
Technology stocks such as US stock storage fell overnight due to hawkish signals compounded by the sell-off of US bonds. Notably, the “big short” Mike Berry said he would increase shorting Micron Technology, stressing that the operation was “quite large.” It also warned that a cycle reversal would trigger a “sharp sell-off.” Furthermore, Acer CEO Chen Junsheng also recently warned that an increase in memory chip production in mainland China may eventually ease supply restrictions and put pressure on prices. The related effects will become more apparent around the end of 2027. This provided new support for Bury's bearish views on storage stocks.
Gold and non-ferrous stocks were generally lower. At the close, Lingbao Gold (03330) fell 4.55% to HK$21; Shandong Gold (01787) fell 3.27% to HK$20.72; Zijin Mining (02899) fell 2.56% to HK$32.72.
The US dollar index rose to 101 to an 8-week high. Furthermore, due to the rebound in international oil prices and the unexpected strengthening of US PMI data, US Treasury bonds experienced a new round of intense sell-off. The 5-year US Treasury yield broke 5% for the first time since 2007; the 10-year US Treasury yield reached the 5.1% mark. Notably, Federal Reserve Governor Barr said that further interest rate hikes may be needed to ensure that inflation returns to target levels and continue to send hawkish signals. CITIC Futures believes that gold remains volatile and weak in the short term, and recovery requires a slowdown in dollar gains or further tightening expectations.
Domestic housing stocks retreated. At the close, China Overseas Hongyang Group (00081) fell 2.62% to HK$2.785; China Resources Land (01109) fell 1.89% to HK$29.06.
According to Yicai, some market sources say that a national interest rate discount policy will be implemented. Among them, the Ministry of Finance will cut interest rates of 20-50BP and local interest rates of 20-50BP. The overall interest rate discount can reach up to 100BP, pushing interest rates for first home loans down to 2%. There are also rumors that mortgage interest rates will be implemented in the near future, with a total amount of 100 billion yuan and an interest rate discount of 20BP, for the first home. In response to this rumor, many brokerage real estate industry analysts believe that it is unlikely that a national interest rate discount policy will be implemented. Some analysts said, “At the national level, extending loan terms is actually about the same as interest rate discount/interest rate cuts reduced.”
Popular exotic stocks
Multipoint Numerology (02586) climbed again. At the close, it was up 15.62% to HK$7.515.
Multi-point Digital Intelligence has been connected to the Doubao ecosystem and recently launched the “Multi-Point Flash Sale”. The closed beta has now been completed. The product integrates the company's offline stores and retail digital intelligence for product contract accumulation and AI interaction capabilities with Doubao to create a new traffic portal for physical retail. In June of this year, Multipoint Digital Intelligence announced full access to the WeChat AI smart ecosystem.
The Tourover-W (09690) rose sharply. At the close, it was up 11.31% to HK$11.42.
Tourover announced that an indirect wholly-owned subsidiary signed an agreement before the trading session on September 24 to conditionally acquire all shares in Conti Trade Australia, an Australian company owned by German tire manufacturer Continental AG. The target company operates the “mycar Tyre & Auto” car service network. As of the end of June this year, it had 279 stores in Australia.
Hantian Tiancheng (02726) performed brilliantly. At the close, it was up 8.06% to HK$89.15.
For the first time, Zhongtai International covered the stock and gave it a “buy” rating. The target price was HK$166.30 based on an estimated market sales rate of 22 times the 2027 market sales rate. The bank pointed out that the company is the world's largest supplier of silicon carbide epitaxial, with a global market share of 31.6% in 2024. It is also the first company in the world to achieve commercial supply of 8-inch silicon carbide epitaxial, and its customers cover 4 of the top five silicon carbide device manufacturers in the world.
Joyson Electronics (00699) rose moderately. At the close, it was up 3.69% to HK$12.65.
According to a report by the Shanghai Securities News, a local industry source in Ningbo confirmed to reporters that Tesla's relevant team has examined the robot business of Ningbo listed companies such as Joyson Electronics. Many of these listed companies have previously cooperated with Tesla for years on new energy vehicle components, and it is expected that some companies' robot components will be used in Tesla's mass-produced humanoid robot Optimus.
Nuocheng Jianhua (09969) went high diving in the afternoon. At the close, it was down 7.87% to HK$14.51.
Nuochengjianhua announced at noon that its wholly-owned subsidiary and Eli Lilly signed a R&D cooperation and licensing agreement. The two sides will carry out strategic cooperation in the field of innovative drug research and development to discover and develop up to 5 innovative target projects. Eli Lilly will pay a down payment of up to $100 million and recent milestone payments, totaling approximately $3.25 billion in potential R&D and commercialization milestone payments.
The Ningde era (03750) continued to be under pressure. At the close, it was down 3.66% to HK$492.8.
Citi released a research report saying that due to concerns about battery demand in 2027, Ningde Era and lithium carbonate-related stocks have recently been sold off. It is believed that the market has overpriced the weak expectations and is a bit excessive. Optimistic about Ningde Era A shares based on valuation appeal, as well as second-tier players who are gaining market share.