Hong Kong Stock Market Closing (09.11) | Hang Seng Index closed down 0.43%, chip stocks performed well, while most pharmaceutical stocks were heavily impacted

According to Zhitong Finance APP, the three major indices of the Hong Kong stock market fluctuated and softened, with the decline narrowing towards the end of trading. The Hang Seng Index and the Hang Seng Tech Index briefly turned positive at one point. By the close, the Hang Seng Index fell 0.43% or 113.94 points, closing at 26,086.32 points, with a total turnover of HKD 32.5205 billion; the Hang Seng China Enterprises Index fell 0.73%, closing at 9,260.25 points; the Hang Seng Tech Index fell 0.24%, closing at 5,888.77 points.

KYG Securities pointed out that as the A-shares enter a valuation digestion phase, the rising expectations of Federal Reserve easing provide marginal support for the valuation of Hong Kong stocks. The relative advantages of high-quality assets in Hong Kong stocks are expected to gradually emerge. On this basis, the overall valuation of Hong Kong stocks is extremely low, asset quality is excellent, and corporate dividends and buybacks are increasing. Coupled with the gradually easing external liquidity environment, proactive foreign capital is expected to start flowing in.

Blue Chip Performance

SMIC (00981) led the blue chips. By the close, it rose 4.97%, closing at HKD 63.35, with a turnover of HKD 8.471 billion, contributing 21.23 points to the Hang Seng Index. Soochow Securities pointed out that as the largest wafer foundry in China, with the increasing demand for computing power from AI, the demand for high-end chips continues to rise. The company has advantages in capacity scale and process R&D in advanced processes, and the head effect in the industry will become more apparent in the future.

In other blue chip stocks, China Hongqiao (01378) rose 3.64%, closing at HKD 25.08, contributing 3.81 points to the Hang Seng Index; New Oriental-S (09901) rose 3.05%, closing at HKD 42.56, contributing 1.52 points to the Hang Seng Index; Hansoh Pharmaceutical (03692) fell 8.76%, closing at HKD 35.2, dragging down the Hang Seng Index by 6.43 points; CSPC Pharmaceutical Group (01093) fell 7.5%, closing at HKD 10.12, dragging down the Hang Seng Index by 10.41 points.

Popular Sectors

On the market, most large tech stocks softened, with Tencent falling 0.63%. Alibaba briefly turned positive by over 2% in the afternoon but ultimately closed up 0.35%. Oracle's RPO surge ignited the AI computing power industry chain, with bright prospects for AI infrastructure; TSMC's August sales surged 34% year-on-year, leading gains in chip stocks; expectations for Federal Reserve rate cuts continued to rise, with most non-ferrous stocks active. On the other hand, reports indicated that Trump plans to impose restrictions on Chinese pharmaceuticals, leading to significant declines in the pharmaceutical sector, with innovative drugs and CRO concepts leading the drop; new consumption concepts, automotive stocks, and domestic real estate stocks generally fell.

1. Pharmaceutical stocks mostly fell sharply. Tigermed (03347) fell 9.36%, closing at HKD 45.5; Hansoh Pharmaceutical (03692) fell 8.76%, closing at HKD 35.2; CSPC Pharmaceutical Group (01093) fell 7.5%, closing at HKD 10.12; Zai Lab (06127) fell 5.96%, closing at HKD 20.5.

According to media reports, the Trump administration is drafting an executive order to impose strict restrictions on Chinese pharmaceuticals. Some analysts believe that the rumors are causing short-term market sentiment disturbances, and it is still uncertain whether the rumored measures will actually be implemented. Even if implemented, they may face legal challenges from U.S. pharmaceutical companies. In addition, CITIC Securities research report pointed out that the trends of the pharmaceutical sectors in A-shares and Hong Kong stocks are far from over, and the main upward wave is expected to continue in the medium to long term. It is recommended to continue to focus on three areas in the second half of the year: innovation-driven, internationalization + self-control + reform of out-of-hospital marketing models 2. Chip stocks perform well. As of the close, Shanghai Fudan (01385) rose 5.37% to HKD 36.88; SMIC (00981) rose 4.97% to HKD 63.35; Hua Hong Semiconductor (01347) rose 4.63% to HKD 50.2.

Leading foundry TSMC's sales in August increased by 34% year-on-year, indicating that global demand for cutting-edge artificial intelligence (AI) chips remains strong. Additionally, Oracle recently announced a rather positive outlook for its cloud business, fueling hopes that infrastructure construction for AI is accelerating. Guotou Securities pointed out that the global semiconductor industry maintained high prosperity in the first half of this year, with the Chinese sector performing outstandingly. The growth mainly comes from two driving forces: the continuous increase in AI computing power demand driving foundry demand, and the accelerated domestic substitution in equipment, materials, and components. Looking ahead to the second half of the year, the industry will continue to develop along the "AI-driven + self-controllable" dual mainline.

3. AI sector stocks rise. As of the close, SenseTime-W (00020) rose 5.5% to HKD 2.11; Kingsoft Cloud (03896) rose 5.26% to HKD 8.6; Fourth Paradigm (06682) rose 5.06% to HKD 60.2; ZTE Corporation (00763) rose 7.5% to HKD 34.98.

OpenAI is reportedly signing an agreement to purchase USD 300 billion worth of computing power from Oracle over approximately five years. Additionally, Oracle's Q1 2026 financial report revealed that its "remaining performance obligations" currently reach USD 455 billion, a year-on-year increase of about 359%. China Post Securities believes that AIInfra, as a hub connecting computing power hardware and AI applications, needs to adapt to hardware iterations and respond to application demands, showing high prosperity driven by dual forces. This creates multi-level investment opportunities in hardware upgrades at the computing power layer, technological breakthroughs at the AIInfra layer, and application scenarios at the application layer, with the value of cloud computing being reassessed in the penetration of AI, ushering in new growth.

4. Non-ferrous stocks are generally active. As of the close, Luoyang Molybdenum (03993) rose 4.79% to HKD 12.69; China Hongqiao (01378) rose 3.64% to HKD 25.08; Jiangxi Copper (00358) rose 3.28% to HKD 25.18; China Gold International (02099) rose 2.7% to HKD 133.3.

Recently, expectations for a Federal Reserve interest rate cut have continued to rise, and the overnight U.S. PPI data fell short of expectations, further supporting the case for a rate cut. After the data was released, traders increased their bets on a 50 basis point rate cut by the Fed in September. Currently, the market is awaiting tonight's U.S. August CPI data for guidance. ICBC Credit Suisse Fund believes that prices of non-ferrous metals and other commodities have been rising continuously since 2025. With further warming of rate cut expectations, the boost from liquidity easing, coupled with the arrival of the "golden September and silver October" peak season, the non-ferrous metal sector is expected to maintain high prosperity.

Popular volatile stocks

1. Kaizhile International (02122) surged on increased volume, closing up 160.68% at HKD 0.305. **

Kaizhile International announced that it will strategically layout the trading card game (TCG) market, with the first phase achieving an operational service cooperation with the world's top IP Pokémon. On September 10th, the first official Pokémon card dojo in Beijing officially opened at the Beijing Huiju Shopping Center.

2. WuXi AppTec-B ( 02617 ) continues to hit new highs , closing up 20.78% at HKD 108.7.

WuXi AppTec announced that its core product, Tiengertin (TT-00420), in combination with Fulvestrant, for the treatment of hormone receptor-positive (HR+) and human epidermal growth factor receptor 2-negative or low-expressing (HER2-) recurrent or metastatic breast cancer, has received clinical implied approval from the National Medical Products Administration of China for its Phase II clinical trial.

3. Yunfeng Financial ( 00376 ) continues to rise , closing up 19.74% at HKD 6.49.

Yunfeng Financial recently announced that its wholly-owned securities subsidiary, Yunfeng Securities Co., Ltd., has officially received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license (Type 1 license) to provide virtual asset trading services. After this upgrade, Yunfeng Financial will be able to offer virtual asset trading services to retail and professional investors, allowing clients to directly trade digital assets (such as Bitcoin, Ethereum, etc.) on Yunfeng Financial's trading platform.

4. COFCO Joycome ( 01610 ) significantly rises , closing up 5.43% at HKD 1.94.

According to reports, the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, in conjunction with the Price Department of the National Development and Reform Commission, plans to hold a symposium on pig production capacity regulation on September 16th in Beijing. The meeting will invite 25 companies, including Muyuan, Wens, Twin, New Hope, Dekang, Tianbang, COFCO, and Da Bei Nong, to participate. The meeting will study and deploy the pig production capacity regulation work for the second half of this year and next year