Hong Kong Stock Market Closing (09.04) | Hang Seng Index closed down 1.12%, SMIC led the decline among blue chips, chip and gold stocks adjusted

According to Zhitong Finance APP, Hong Kong stocks continued to adjust today, with the three major indices declining in the afternoon but maintaining the 25,000 mark, with the Hang Seng Tech Index performing the worst. By the close, the Hang Seng Index fell 1.12% or 284.92 points, closing at 25,058.51 points, with a total turnover of HKD 30.2233 billion; the Hang Seng China Enterprises Index fell 1.25%, closing at 8,937.09 points; the Hang Seng Tech Index fell 1.85%, closing at 5,578.86 points.

Industrial Securities pointed out that since July 2025, profit forecasts for Hong Kong stocks have been continuously revised downwards, but a turnaround is expected after the mid-year earnings period. In September, Hong Kong stocks may fluctuate following overseas markets around the interest rate meeting; however, fluctuations in a bull market present good opportunities to buy quality assets. Caution is advised regarding the adjustment in U.S. stocks after the "good news has been fully priced in" in September, or if the Federal Reserve does not cut interest rates as expected.

Blue Chip Performance

SMIC (00981) led the decline among blue chips. By the close, it fell 6.67%, closing at HKD 56, with a turnover of HKD 10.687 billion, dragging down the Hang Seng Index by 29.59 points. In terms of news, recently, SMIC announced that it plans to acquire all remaining equity held by other shareholders of its subsidiary SMIC North through the issuance of A-shares, achieving full control over SMIC North. Minsheng Securities believes that SMIC's acquisition of SMIC North may significantly enhance the net profit attributable to the parent company of the listed company. However, the major shareholder, the Big Fund Phase I, holds a 32% stake and has been established for nearly 11 years, with the 24-year recovery period now in the "extension period," creating strong exit demands.

In other blue chip stocks, Baidu Group-S (09888) rose 2.13%, closing at HKD 96, contributing 4.18 points to the Hang Seng Index; Alibaba Health (00241) rose 1.56%, closing at HKD 6.49, contributing 1.06 points; Hua Hong Semiconductor (00868) fell 5.42%, closing at HKD 45.68, dragging down the Hang Seng Index by 3.11 points; Alibaba-W (09988) fell 3.21%, closing at HKD 129.8, dragging down the Hang Seng Index by 15.73 points.

Popular Sectors

On the market, semiconductor and chip stocks led the decline, with both SMIC and Hua Hong Semiconductor experiencing significant drops. Recently, several renewable energy generation operators have received renewable energy subsidy funds, which positively impacted most photovoltaic stocks, with the market generally expecting September to be an important node for the implementation of photovoltaic anti-involution plans. Gold stocks fell across the board, with current market focus on the U.S. non-farm payroll data for August. On the other hand, medical outsourcing, biopharmaceuticals, and innovative drugs saw a pullback, while film and entertainment stocks experienced intraday fluctuations.

1. Chip stocks led the decline. By the close, Jingmen Semiconductor (02878) fell 7.29%, closing at HKD 0.445; SMIC (00981) fell 6.67%, closing at HKD 56; Shanghai Fudan (01385) fell 6.21%, closing at HKD 31.72; Hua Hong Semiconductor (01347) fell 5.42%, closing at HKD 45.68.

In terms of news, Hua Hong recently announced plans to acquire 97.5% of Huali Micro through the issuance of shares and cash payments and to raise matching funds. SMIC stated that it is planning to issue A-shares to acquire 49% of the minority equity in SMIC North Dongxing Securities pointed out that recent asset integration events among leading semiconductor companies are frequent, and behind the asset integration of leading companies like SMIC is the embodiment of the national technology strategy, which aims to enhance the development of China's high-tech industry through moderate bubbles in the capital market.

Minsheng Securities believes that SMIC's acquisition of SMIC North may significantly increase the net profit attributable to the parent company of the listed company. This move will also meet the exit demand of shareholders represented by the first phase of the National Integrated Circuit Industry Investment Fund. The first phase of the National Fund is a single major shareholder with a 32% stake, and it has been nearly 11 years since its establishment. The 24-year recovery period has passed, and it is currently in the "extension period," with a strong exit demand. Similarly, other shareholders have similar needs.

It is worth noting that on September 4, the Ministry of Industry and Information Technology and the State Administration for Market Regulation issued the "Action Plan for Stable Growth in the Electronic Information Manufacturing Industry 2025-2026." The "Plan" emphasizes focusing on vertical industry scenarios, effectively promoting the conversion of computing power into productivity, creating a computing ecosystem centered on cross-platform computing frameworks, accelerating compatibility with multi-system chips, various types of software, and diversified systems, and enhancing the dominant position of the industrial ecosystem. It also calls for strengthening efforts in CPU, high-performance artificial intelligence servers, and software-hardware collaboration, as well as conducting adaptability tests for AI chips and large models. There is a need for moderately advanced deployment of new infrastructure construction, improving the operational management level of existing infrastructure across regions, and enhancing compatibility and adaptation of servers, chips, and key modules.

CITIC Securities pointed out that the market share of domestic memory chip suppliers and wafer foundries is expected to further increase. Currently, the demand for expansion in domestic advanced memory and logic wafer fabs continues to be maintained, with expectations for rapid recovery in expansion in the second half of the year and next year, significantly driving demand for domestic equipment. In addition, due to the increasing difficulty of procuring overseas equipment, TSMC, Samsung, and SK Hynix may start looking for domestic alternative suppliers if they want to further expand production, which will continuously benefit related companies in the domestic semiconductor equipment and materials supply chain.

2. Most photovoltaic stocks rose. By the close, GCL-Poly Energy (00968) rose 8.43% to HKD 0.9; Flat Glass Group (06865) rose 5.67% to HKD 11.19; Xinyi Solar (00968) rose 2.07% to HKD 3.45; LONGi Green Energy (01108) rose 1.83% to HKD 4.63; GCL Technology (03800) rose 1.55% to HKD 1.31.

In terms of news, according to announcements from Solar Energy and Jinkai New Energy, several renewable energy power generation operators have recently received renewable energy subsidy funds. The photovoltaic project company under Solar Energy received subsidy funds from January to August, an increase of 232% year-on-year, reaching 170% of the total amount for the entire year of 2024; Jinkai New Energy received subsidy funds from January to August, an increase of 342% year-on-year, reaching 190% of the total amount for the entire year of 2024.

Analysts pointed out that against the backdrop of wind and solar project yields being pressured by market-oriented transactions on the income side and rising costs on the cost side, "the concentrated issuance of historically overdue subsidies" is a potential policy tool that can immediately stimulate developers' investment enthusiasm and is expected to provide certain support for domestic photovoltaic demand in 2026 It is worth mentioning that on September 4th, the Ministry of Industry and Information Technology and the State Administration for Market Regulation issued the "Action Plan for Stable Growth in the Electronic Information Manufacturing Industry 2025-2026." The "Plan" points out that high-quality development in fields such as photovoltaics should be achieved by breaking the "involution" competition and legally governing the low-price competition of photovoltaic products. It aims to guide localities to orderly layout the photovoltaic and lithium battery industries and assist them in sorting out capacity situations.

CICC believes that the market generally expects September to be an important node for the implementation of the photovoltaic anti-involution plan. Observing the overall performance of the photovoltaic sector, since the heated discussion on "anti-involution" in July, the photovoltaic index has not shown significant excess returns compared to the Shanghai and Shenzhen markets. Therefore, if subsequent policies are implemented, there is still considerable room for the sector's targets.

3. Gold stocks fell across the board. As of the close, Tongguan Gold (00340) fell 8.93% to HKD 2.04; China Gold International (02099) fell 7.43% to HKD 115.9; Lingbao Gold (03330) fell 7.19% to HKD 15.39; Chifeng Gold (06693) fell 4.84% to HKD 27.12.

In terms of news, on September 4th, spot gold plummeted, briefly falling below the USD 3,520 mark, with the latest quote at USD 3,531.89 per ounce, down 0.77% for the day; COMEX gold futures were last quoted at USD 3,588.3 per ounce, down over 1% for the day. Baocun Futures believes that since last Friday, precious metals have shown an accelerated upward trend, mainly due to the weakening performance of both domestic and foreign equity markets, which has significantly increased market demand for safe-haven assets. Funds may begin to rotate, and the safe-haven premium for precious metals has risen. Additionally, the current market focus is on the U.S. non-farm payroll data for August. This is the last non-farm data before the Federal Reserve's interest rate meeting in September, which is expected to have a key impact on interest rate cuts in September.

Popular Active Stocks

1. Zhongchuang Xinhang (03931) strengthened throughout the day, closing up 13.81% at HKD 24.72, with a transaction volume of HKD 919 million.

In terms of news, recently, according to the official website of India's Ashok Leyland, Ashok Leyland announced plans to invest in the development and manufacturing of next-generation battery products for automotive and non-automotive applications, including energy storage system solutions. The Indian commercial vehicle manufacturer Ashok Leyland announced a long-term exclusive partnership with Zhongchuang Xinhang, planning to invest over 500 billion rupees (approximately 40.45 billion RMB) in battery manufacturing projects over the next 7-10 years to meet the demands of the automotive and energy storage system sectors and promote the establishment of a localized battery supply chain in India.

It is reported that Zhongchuang Xinhang is accelerating its global capacity layout, with its Thailand Pack factory already delivering steadily; the Portugal base is set to break ground in the first quarter of 2025, with an investment of over 15 billion RMB, and is expected to be put into production by 2027, with an estimated annual capacity of 15GWh.

2. Hualing Pharmaceutical-B (02552) continued to rise after earnings, accumulating over 40% increase post-earnings, closing up 14.75% at HKD 4.59, with a transaction volume of HKD 194 million. Recently, Hualing Pharmaceutical announced its mid-term performance for 2025. During the reporting period, the sales volume of Huatangning® reached 1.764 million boxes, a year-on-year increase of 108%, with net sales of 217.4 million yuan, a year-on-year increase of 112%. It is worth mentioning that after terminating the exclusive promotion service agreement with Bayer, the company confirmed a one-time deferred revenue of 1.2435 billion yuan, achieving a profit of 1.1839 billion yuan in the first half of the year, marking its first profit during the performance period, indicating significant results in its commercialization transformation. At the same time, the expansion of production scale and improvement in operational efficiency drove the gross profit margin to 54.2%, an increase of 7.7 percentage points year-on-year, showing a clear trend of improving profitability.

3. Aneng Logistics (09956) strengthened against the market trend, closing up 10.61% at HKD 9.07, with a transaction volume of HKD 180 million.

Against the backdrop of a price war in the less-than-truckload logistics industry, Aneng Logistics delivered an unexpectedly strong mid-term report for 2025. Recently, Aneng Logistics released its mid-term performance for 2025, reporting a total less-than-truckload freight volume of 6.82 million tons, a year-on-year increase of 6.2%; operating revenue of 5.625 billion yuan, a year-on-year increase of 6.4%; adjusted net profit of 476 million yuan, a year-on-year increase of 10.7%; gross profit and gross profit margin reached 880 million yuan and 15.6%, respectively. At the same time, the company also announced its first dividend plan since going public, with a mid-term dividend payout ratio of 50%.

In terms of service quality improvement, the company focuses on the product side, promoting the upgrade of the "3300 flagship product," making it a tool for expanding the high-margin small and medium-sized ticket market. In the first half of the year, the volume of goods below 300 kg increased by 18.2% year-on-year, further enhancing profit levels. On the other hand, Aneng is also working on quality implementation by initiating a quality "100-day rebirth campaign," starting from the entire chain of collection, transportation, and delivery services, strengthening the responsibility closure for quality upgrades, and solidifying the foundation for high-quality development.

4. Walnut Capital (00905) has a highly concentrated shareholding, closing down 36.36% at HKD 1.4, with a transaction volume of HKD 17.7157 million.

In terms of news, the Hong Kong Securities and Futures Commission stated that it recently inquired about the share distribution of Walnut Capital, showing that nineteen shareholders collectively hold 147 million shares (equivalent to 13.98% of the issued shares), while another 588 million shares (accounting for 56.01% of the issued shares) are held by the company's CEO. The aforementioned shareholding accounts for 94.65% of the issued shares. Therefore, only 5.35% of the issued share capital is held by other shareholders. The company stated that it confirmed that on August 25 and September 3, no less than 25% of the company's issued shares were held by the public, and the company could comply with the public shareholding requirements under the Hong Kong Stock Exchange's securities listing rules.

It is worth noting that as of September 2, the company's stock price closed at HKD 2.28, up 449% from the closing price of HKD 0.415 on March 28 this year