Financial Associated Press October 16th News (Editor Hu Jiarong) Today, the three major Hong Kong stock indices collectively adjusted. As of the close, the Hang Seng Index fell by 0.16% to close at 20,286.85 points; the technology index fell by 1.09% to close at 4,402.37 points; the state-owned index fell by 0.14% to close at 7,267.98 points.

Note: performance of Hang Seng Index.

From the above chart, the Hang Seng Index touched an intraday low of 20,166 during today's trading session, and then continued its fluctuating trend.

Huatai Securities pointed out that due to the verification of policy expectations until early November, timing factors such as the third quarter reports of A-shares and Hong Kong stocks, as well as the U.S. election, may continue to restrain the performance of Hong Kong stocks.

Huatai Securities also pointed out that considering that negative emotions have been largely released in the recent period, the market may be close to the support level, and further downside space may be limited. Looking ahead, Hong Kong stocks are likely to continue to fluctuate in the current range in the short term.

Today's Market

From the market performance perspective, real estate, gold, infrastructure, and banking stocks are leading the gains, while petroleum and pharmaceutical stocks are weakening.

Real estate stocks lead the market, with Sunac China up 40%.

Among real estate stocks, Sunac China (01918.HK), Zhongliang Hldg (02772.HK), and BBMG Corporation (02777.HK) rose by 40%, 33.88%, and 32.67% respectively.

Note: performance of real estate stocks.

On the news front, the State Council Information Office will hold a press conference at 10:00 a.m. on October 17th, where the Minister of Housing and Urban-Rural Development Ni Hong, along with officials from the Ministry of Finance, Ministry of Natural Resources, People's Bank of China, and China Banking and Insurance Regulatory Commission will introduce the relevant information on promoting the stable and healthy development of the real estate market and answer questions from reporters.

On October 12th, the Ministry of Finance announced a package of fiscal stimulus policies, including using tools such as special bonds, special funds, and tax policies to support the real estate market.

With the recovery of real estate stocks, building materials and cement stocks strengthened. At the close, BBMG Corporation (02009.HK), Dongwu Cement (00695.HK), and CNBM (03323.HK) rose by 8.22%, 8.07%, and 7.93% respectively.

Note: Performance of building materials stocks.

Most gold stocks strengthen, Zhaojin Mining up nearly 5%.

In the golden industrial concept, Zhaojin Mining (01818.HK), SD Gold (01787.HK), Lingbao Gold (03330.HK) rose by 4.97%, 4.68%, and 4.33% respectively.

Note: Performance of gold stocks

On the news front, overnight COMEX gold futures rose by 0.52%, reaching $2679.5 per ounce. The main contract for Shanghai gold rose to 610.59 yuan/gram during today's trading session, setting a new historical high. In addition, John Lee Ka-chiu, the Chief Executive of the Hong Kong Special Administrative Region, announced attracting investors to store gold in Hong Kong, promoting gold trading clearing and settlement.

Most bank stocks strengthened with Jiangxi Bank surging over 7%.

In the banks sector, Jiangxi Bank (01916.HK), Bank of Chongqing (01963.HK), Bank of Qingdao (03866.HK) rose by 7.68%, 6.85%, and 3.77% respectively.

Note: Performance of bank stocks.

On the news front, there were rumors in the market yesterday that Chinese banks are likely to further reduce deposit rates soon, with an announcement expected as early as this week. Several banks' officials approached by journalists have not yet given a positive response, but some industry insiders have indicated a possibility of a deposit rate cut in the near future.

Petroleum stocks weakened with PetroChina dropping by nearly 2%.

In petroleum stocks, PetroChina (00857.HK), Sino Oil & Gas (00857.HK), and Yanchang Petro (00346.HK) fell by 1.61%, 1.54%, and 1.43% respectively.

Note: Performance of petroleum stocks.

On the news front, yesterday IEA once again lowered its global oil demand growth forecast and mentioned that the global oil market will fall into a huge supply surplus. Dongwu Futures believes that oil prices will trend bearish in the short term, with some support remaining below.

Medical stocks decline with Wuxi Bio (02269.HK) dropping over 8%.

In medical stocks, Frontage (01521.HK), Pharmaron (03759.HK), and Wuxi Bio (02269.HK) fell by 8.06%, 5.62%, and 2.85% respectively.

Note: performance of medical stocks.

On the news front, according to the earlier released "Work Plan for the Adjustment of the National Basic Medical Insurance, Work Injury Insurance, and Maternity Insurance Drug Catalog in 2024" by the National Medical Security Administration, it is expected that negotiations and bidding for this year's medical insurance catalog adjustment will take place from September to November and the final results will be announced after this phase.

Southbound funds.

Today, the net inflow of southbound funds continued to be 1.546 billion Hong Kong dollars. Cumulative outflow since the beginning of this year amounts to 502.7 billion Hong Kong dollars.

Note: Performance of Southbound funds

Individual stock dynamics

Sunart Retail rose more than 15% and the company received a tender offer letter.

Sunart Retail (06808.HK) rose by 15.08% to close at 2.06 Hong Kong dollars. In terms of news, the company announced that its board of directors received a letter of contact from a potential tender offeror on September 27, 2024, expressing an intention to voluntarily conditionally tender for all of the company's issued shares subject to certain preconditions.

Sunart Retail also mentioned in the announcement that there is no further progress to disclose on the equity transaction information, and will make further disclosures in accordance with relevant regulatory requirements in the future.

Cha Baidu surged nearly 30% as its first store in Hong Kong officially opened.

Cha Baidu (02555.HK) rose by 29.80% to close at 11.50 Hong Kong dollars. On October 11, Cha Baidu's first store in Hong Kong officially opened, attracting enthusiastic consumers with an average waiting time of about 2 hours.