Hong Kong stocks closed (09.24) | The Hang Seng Index rose by 1.37%, chip stocks performed well, and Alibaba-W surged over 9%

According to Zhitong Finance APP, the three major indices of the Hong Kong stock market opened lower this morning, but continued to rise with the support of technology stocks. By the close, the Hang Seng Index rose 1.37% or 359.53 points to 26,518.65 points, with a total turnover of HKD 288.772 billion; the Hang Seng China Enterprises Index rose 1.64% to 9,442.99 points; the Hang Seng Tech Index rose 2.53% to 6,323.15 points.

CITIC Construction Investment pointed out that the Federal Reserve's interest rate cut was as expected, advancing the rate cut cycle, which is a direct benefit to the Hong Kong stock market. From a medium to long-term perspective, the liquidity in the Hong Kong stock market is abundant this year, with continuous inflows of southbound funds. The AI narrative is strengthened by Alibaba Cloud's high growth performance, and the self-developed chips of internet companies are reinforced, making sectors with strong industrial logic worth continuous attention.

Blue Chip Performance

Alibaba-W (09988) hit a nearly four-year high, closing up 9.16% at HKD 174, with a turnover of HKD 44.091 billion, contributing 221.14 points to the Hang Seng Index. At the 2025 Alibaba Cloud Summit, Alibaba officially announced a Physical AI collaboration with NVIDIA. The collaboration covers all aspects of Physical AI practice, including data synthesis processing, model training, environmental simulation reinforcement learning, and model validation testing. In addition, Alibaba CEO Eddie Wu stated that Alibaba is actively promoting a three-year plan for AI infrastructure construction worth HKD 380 billion and will continue to invest more.

In other blue chip stocks, SMIC (00981) rose 5.72% to HKD 76.75, contributing 29.31 points to the Hang Seng Index; Xinyi Solar (00968) rose 4.91% to HKD 3.42, contributing 1.16 points to the Hang Seng Index; New Oriental-S (09901) fell 1.72% to HKD 39.94, dragging down the Hang Seng Index by 0.86 points; China National Pharmaceutical Group (01177) fell 1.72% to HKD 8, dragging down the Hang Seng Index by 2.25 points.

Popular Sectors

On the market, large technology stocks rose across the board, with Alibaba soaring over 9% to reach a nearly four-year high, Kuaishou rising nearly 4%, and Tencent rising over 2%. The semiconductor industry is experiencing a new round of price increases, with chip stocks leading the gains; SMIC rose over 5% to hit a new high; AI concept stocks were active, with GDS Holdings and Kingdee International both rising over 6%; the anti-involution trend continues to advance, with photovoltaic stocks generally rising today; home appliance stocks, robotics concepts, and Apple concepts are also performing well. On the other hand, cryptocurrency concepts continued to decline; the performance of film and entertainment, biopharmaceuticals, and paper stocks was weak.

1. Chip stocks lead the gains. By the close, Hongguang Semiconductor (06908) rose 6.9% to HKD 0.62; ASMPT (00522) rose 6.2% to HKD 83.9; SMIC (00981) rose 5.72% to HKD 76.75; Hua Hong Semiconductor (01347) rose 3.86% to HKD 63.25.

Recently, the semiconductor industry's price increase expectations have been continuously catalyzed. The price of semiconductor silicon wafers is expected to rise significantly in the fourth quarter, with huge incremental demand driven by AI chips, and the non-AI group showing a strong recovery, specifically including: general server growth of 20% by 2025; in terms of mature processes, TSMC and UMC's utilization rates are expected to remain stable in the fourth quarter of 2025, and SMIC's growth in the second half of 2025 has not slowed down, performing better than expected According to media reports, TSMC's 2nm process price has increased by at least 50% compared to the 3nm process, while the price of the last generation 3nm CPU has risen by about 20% compared to the previous generation.

Goldman Sachs pointed out that the long-term demand growth prospects for AI chips in China will become clearer, benefiting leading domestic foundries such as SMIC. Analyst Allen Chang stated in the report that China's demand for AI chips will continue to grow, driven by increased capital expenditure budgets from Chinese cloud service providers and the increasingly rich applications of artificial intelligence. Goldman Sachs raised the 12-month target price for SMIC's A-shares from RMB 160.1 to RMB 182.8, continuing to use a 238% A-H valuation premium as the target price for A-shares.

2. AI concept stocks perform actively. As of the close, GDS Holdings Limited-SW (09698) rose 6.58% to HKD 40.18; Kingdee International Software Group Company Limited (00268) rose 6.33% to HKD 17.14; Weimob Inc. (02013) rose 5.28% to HKD 2.79; Kingsoft Corporation Limited (03888) rose 2.87% to HKD 35.16.

On September 24, Alibaba announced a Physical AI collaboration with NVIDIA; currently, Alibaba is actively promoting an AI infrastructure construction worth RMB 380 billion and plans to make additional investments. Recently, China Merchants Securities pointed out that AI remains the main line of Hong Kong stocks. From a fundamental perspective, AI cloud business maintains high growth rates. In Q2, the strong demand for AI from domestic cloud vendors drove accelerated revenue growth, with POE (private enterprises in China) cloud service revenue exceeding that of state-owned telecom companies for the first time in four years. Self-developed chips have become a new catalyst for major AI companies recently, and the market is gradually showing characteristics of "heavy models, light applications." From an overseas perspective, Broadcom and Oracle's financial reports confirm the sustained high prosperity of AI, and overseas mapping still exists.

3. Most photovoltaic stocks rise. As of the close, Xinyi Solar Holdings Limited (00968) rose 4.91% to HKD 3.42; Flat Glass Group Co., Ltd. (06865) rose 4.17% to HKD 11.5; Xinyi Glass Holdings Limited (00868) rose 3.97% to HKD 8.91; GCL-Poly Energy Holdings Limited (03800) rose 3.17% to HKD 1.3.

On September 24, Wang Hongzhi, Director of the National Energy Administration, published an article in Learning Times titled "Promoting High-Quality Development of New Energy in Our Country with Greater Efforts," which pointed out the need to accelerate the resolution of the phased supply-demand imbalance in the upstream and downstream of the industrial chain, specifically addressing the "involution" competition in the photovoltaic industry, promoting quality upgrades in industries such as photovoltaics, and facilitating orderly competition and healthy development in new energy generation and related industries. It is worth mentioning that since the Central Political Bureau meeting held in July 2024, domestic efforts to rectify "involution" competition have continued to intensify. Guojin Securities believes that the photovoltaic industry is expected to achieve supply-side improvement through a combination of top-level support, market-oriented elimination, and technological iteration, and it is anticipated that subsequent policy combinations related to capacity and product quality will be gradually implemented, driving continuous recovery in the industry chain's prosperity.

Popular Active Stocks

1. Datang Gold (08299) rises again. As of the close, it rose 29.27% to HKD 0.53. **

Datang Gold recently announced that the company will issue up to 1.039 billion new shares at a price of HKD 0.275 per share, with an expected net fundraising amount of approximately HKD 274 million. One of the main investors in this placement is Victor Soar Investment Limited. This company is the largest shareholder, actual controller, and chairman of the board of the International Gold Group (03939), Mr. Gao Mingqing. After the completion of this placement, Mr. Gao Mingqing will become the second largest shareholder of Datang Gold.

2. Weimob Group (02013) performs well. As of the close, up 5.28%, at HKD 2.79.

Recently, Weimob Group announced a strategic investment in the North American AI innovation company Genstore.ai. At the same time, Weimob officially announced the establishment of a new business unit called "Weimob Going Global." Weimob Going Global has become the exclusive strategic partner of "Genstore.ai China," and both parties will assist Chinese brands in going global.

3. Shandong Molong (00568) AH shares rise together. As of the close, up 5.65%, at HKD 4.3.

Due to stalled negotiations on the agreement to resume oil exports from the Kurdish region of Iraq, concerns about global supply surplus have eased for some investors, leading to a slight rebound in international crude oil prices. Overnight, WTI crude oil futures rose by 1.81%, closing at USD 63.41 per barrel. Brent crude oil futures rose by 1.6%, closing at USD 67.63 per barrel.

4. Kuaishou-W (01024) rises moderately. As of the close, up 3.78%, at HKD 76.85.

On September 23, the Keling AI base model was upgraded again, with the video generation launching the Keling 2.5 Turbo model, further enhancing its effectiveness. Goldman Sachs released a research report stating that it expects Kuaishou's new AI model to continuously boost user engagement, maintaining its forecast for Kuaishou's AI-related revenue to reach USD 154 million in fiscal year 2025 (compared to the company's guidance of USD 125 million), and reaffirmed its "Buy" rating.

5. Giant Biologics (02367) stock price plummets. As of the close, down 11.96%, at HKD 54.1.

Huaxi Biologics recently made a formal response regarding the previously highly publicized "support for Dr. Hao Yu." Huaxi Biologics stated that after receiving Dr. Hao Yu's request for help, it has collaborated with several third-party testing institutions, including the National Institute of Metrology, to test related products from relevant companies. The results of dozens of tests showed that the amount of recombinant collagen in the related products did not meet standards. Huaxi Biologics stated, "Dozens of test reports have been submitted to the National Medical Products Administration."