Hong Kong Stock Market Mid-Review | All three major indices fell, with the Tech Index leading the decline at 2.81%. The semiconductor and retail sectors faced pressure, with Alibaba down 3.17% and SMIC down 5.15%

Hong Kong stocks experienced weak fluctuations in the morning, with all three major indices declining. The technology and semiconductor sectors dragged down the overall market. Market sentiment is cautious, with leading stocks Alibaba and SMIC seeing significant declines, and funds continuing to flow out of top sectors. The global interest rate hike cycle and insufficient endogenous economic momentum have intensified volatility, leading to a decrease in investors' risk appetite. There is a clear differentiation among sectors, with a strong atmosphere of long-term funds being on the sidelines

Current Situation of the Three Major Indices

Hang Seng Index (HSI): down 1.61%
Hang Seng China Enterprises Index (HSCEI): down 1.67%
Hang Seng Tech Index (HSTECH): down 2.81%
The entire market saw 365 stocks rise, 1380 stocks fall, and 973 stocks remain flat.

Retail Sector

The sector has seen significant declines due to weak consumer demand and continued short-term capital outflows, putting pressure on the industry.

Pop Mart ( 9992.HK ): down 1.88%, trading volume HKD 2.169 billion. The retail market is weak, with declining foot traffic in offline stores dragging down performance, and short-term capital exiting the market, focusing on fluctuations in high-end trendy toy demand.
Meituan -W ( 3690.HK ): down 2.73%, trading volume HKD 2.346 billion. The recovery of platform consumption is limited, with new business and restaurant growth slowing post-pandemic, and third-quarter revenue falling short of expectations, leading to cautious short-term capital.
Alibaba -W ( 9988.HK ): down 3.17%, trading volume HKD 7.784 billion. Core business recovery is slow, platform consumption is under pressure, and external market uncertainties are increasing, leading to continued investor withdrawals.

Semiconductor Sector

The sector is undergoing a comprehensive adjustment, with a global decline in chip demand and a downturn in the industry cycle, accelerating capital withdrawal.

SMIC ( 981.HK ): down 5.15%, trading volume HKD 5.575 billion. The global semiconductor downturn is suppressing performance, with an extended inventory destocking cycle reflecting in stock prices.
Hua Hong Semiconductor ( 1347.HK ): down 3.50%, trading volume HKD 2.876 billion. A decline in terminal chip demand and downward revisions in performance guidance have led to a gloomy capital market sentiment.
GCL-Poly Energy ( 3800.HK ): down 6.52%, trading volume HKD 1.591 billion. Weakness in the new energy and semiconductor sectors, along with the company's diversification efforts struggling to offset pressure on its main business, has led to noticeable capital withdrawal.

Internet Content and Information Sector

The sector has broadly declined under the influence of policy and performance pressures, with market expectations for growth among internet giants becoming more conservative.

Tencent Holdings ( 700.HK ): down 1.53%, trading volume HKD 4.081 billion. New gaming regulations and content compliance pressures, along with limited performance in cloud and advertising businesses, have led the market to lower growth expectations, with investors remaining cautious.
Xiaomi Group -W ( 1810.HK ): down 2.86%, trading volume HKD 6.075 billion. The global smartphone market is under pressure, with slow recovery in overseas channels and limited short-term profitability improvement, leading to capital outflows
Meituan-W (3690.HK): down 2.73%, turnover of HKD 2.346 billion. Demand for platform services has limited recovery, and the difficulty of expanding life services is high, with short-term institutional funds being cautious.

Market Focus

The pace of interest rate hikes by the Federal Reserve and the global high interest rate environment continue to exert pressure on capital flows and market sentiment in Asia. Overseas funds are becoming conservative, and tightening liquidity is exacerbating volatility in Hong Kong stocks.
The endogenous momentum of China's macro economy is weak, with a slowdown in the recovery pace of consumption and manufacturing, affecting investors' risk appetite, leading to a wait-and-see attitude among institutions in the short term.
The short-term adjustment of the technology and semiconductor sectors has become the main theme of the market, with expectations for policy stimulus existing but the timing unclear, leading to a rise in defensive demand.

Top Ten Stocks by Turnover

Alibaba-W (9988.HK), HKD 156.10, down 3.17%, turnover of HKD 7.784 billion.
Xiaomi Group-W (1810.HK), HKD 46.34, down 2.86%, turnover of HKD 6.075 billion.
SMIC (981.HK), HKD 70.10, down 5.15%, turnover of HKD 5.575 billion.
Tencent Holdings (700.HK), HKD 610.50, down 1.53%, turnover of HKD 4.081 billion.
Hua Hong Semiconductor (1347.HK), HKD 78.60, down 3.50%, turnover of HKD 2.876 billion.
Meituan-W (3690.HK), HKD 96.05, down 2.73%, turnover of HKD 2.346 billion.
Pop Mart (9992.HK), HKD 282.80, down 1.88%, turnover of HKD 2.169 billion.
ZTE Corporation (763.HK), HKD 38.40, down 10.72%, turnover of HKD 2.065 billion.
Zijin Mining (2899.HK), HKD 32.88, down 0.43%, turnover of HKD 1.883 billion.
GCL Technology (3800.HK), HKD 1.29, down 6.52%, turnover of HKD 1.591 billion