On November 11, Finet Editors (Hu Jiarong) reported that all three major indexes of the Hong Kong stock market weakened collectively. As of the close, the Hang Seng Index fell by 1.45% to close at 20426.93 points; the Technology Index fell by 0.35% to close at 4651.71 points; the Hang Seng China Enterprises Index fell by 1.42% to close at 7355.57 points.

Note: performance of Hang Seng Index.

Regarding the adjustment in the Hong Kong stock market, HTSC pointed out that on November 8, the Standing Committee of the National People's Congress held a press conference, the main incremental policy is to add 6 trillion yuan in local special bond quota to replace local stock hidden debt. Considering that before the market had not formed a consistent expectation, it cannot be ruled out that some foreign capital's expectations might be different from the continuous inflow of assets in Greater China prior to this.

They also believe that the combination of the "924" policy has eased investors' concerns about the tail risk of real estate, and has also narrowed China's vs. other emerging markets' PBLF discount from 30% to around 15%. Currently, the pricing of Hong Kong stocks still includes considerations of certain long-term factors such as the transition of new and old energy, the operating environment of private enterprises, etc., and may be in a neutral position. If there is a significant adjustment in the short term, it may be a good opportunity to intervene.

Today's Market

From the market performance perspective, car retail and digital currency stocks and their related ETFs are showing an upward trend. At the same time, brokerage and real estate stocks are showing weakness.

Zhongsheng Hldg is associated with the concept of "Huawei Smart Selection Car", boosting the trend of related individual stocks.

Among the auto retail stocks, Zhongsheng Hldg (00881.HK), Zhengtongauto (01728.HK), and Meidong Auto (01268.HK) rose by 21.41%, 16.10%, and 12.40% respectively.

Note: Performance of automotive retail stocks

On the news front, a blogger recently posted on Weibo that Zhongsheng Group is fully embracing new energy, securing the authorization for 50 (some say 48) Huawei Smart Selection cars. According to public information, Zhongsheng Group is one of China's leading nationwide car dealerships, focusing on operating a luxurious and mid- to high-end brand portfolio, including Mercedes-Benz, Lexus, Audi, BMW, Volvo, Jaguar Land Rover, Toyota, Nissan, Honda, among other brands.

Cryptocurrencies continue their rise, with OKG Tech surging over 14%.

Among the crypto concept stocks, OKG Tech (01499.HK), OSL Group (00863.HK), and Meitu (01357.HK) rose by 14.44%, 8.95%, and 7.64% respectively.

Note: Performance of crypto concept stocks.

On the news front, Bitcoin broke through the $80,000 mark for the first time last Sunday, continued to rise on Monday, reaching a high of $81,850.50 per coin, setting a new historical record.

Note: Performance of Bitcoin.

The recent increase in Bitcoin is indeed related to the US election. After Trump announced his victory in the 2024 US presidential election, the market's response to Bitcoin has been interpreted as the so-called 'Trump trade'.

During his campaign, Trump expressed support for digital assets and promised that if he returned to the White House, he would push for the USA to become the global capital of cryptos, establish a strategic bitcoin reserve, and appoint regulators friendly to digital assets. These policy proposals have boosted confidence in the future development of bitcoin in the market, expecting that in a more favorable regulatory environment, the digital asset market will have greater room for growth.

Similarly stimulated by this news, the Hong Kong digital currency ETFs also saw an increase. As of the close, the Huaxia Ethereum (03046.HK), ChinaAMC Ethereum (03179.HK), and ChinaAMC Bitcoin (03439.HK) rose by 7.82%, 7.46%, and 6.85% respectively.

Note: Performance of Hong Kong digital currency ETFs

Most brokerage stocks fell, with Cisi Fin dropping over 7%

In the brokerage sector, Cisi Fin (06058.HK), Shenwan Hongyuan (06806.HK), and CITIC Securities (06030.HK) fell by 7.27%, 3.63%, and 3.56% respectively.

Note: Performance of brokerage stocks

In terms of news, on the morning of November 11, Haitong Securities, GTJA, and other brokerages announced that starting November 11, the company would adjust the standard RMB margin interest rate for clients to 0.10% (annualized). Some analysts believe that the rate cut for margin account deposits will not have a significant impact on individual clients, but due to a large number of clients, it will affect brokerage firms' margin interest income differentials.

Most real estate stocks are weakening, with Sunac China falling more than 9%.

Among real estate stocks, Sunac China (01918.HK), R&F Properties (02777.HK), Shimao Group (00813.HK) fell by 9.48%, 9.26%, and 8.55% respectively.

Note: performance of real estate stocks.

From the above chart, most real estate stocks are weakening, but Minister of Finance Lan Foan recently stated that related tax policies supporting the healthy development of the real estate market have been approved according to procedures and will be launched soon. The Ministry of Finance is coordinating with relevant departments to develop detailed policies to accelerate implementation, including special bonds to support the recovery of idle land, new land reserves, and the acquisition of existing commercial housing for the purpose of affordable housing.

Southbound funds.

The net inflow of funds from the north continued today, amounting to 9.865 billion Hong Kong dollars. Since the beginning of this year, a total of 604.9 billion Hong Kong dollars have flowed in.

Note: Performance of Southbound funds

Individual stocks are fluctuating.

Hua Hong Semiconductor rose more than 7%, with institutions stating that the demand for 12-inch wafers remains strong.

Hua Hong Semiconductor (01347.HK) rose 7.21% to close at HK$24.55. Daiwa Securities released a research report stating that the pace of wafer price increases for Hua Hong in the second half of 2025 is weaker than expected, mainly due to weak end-demand environment. However, the investment progress of Hua Hong's new 12-inch wafer factory is smooth, which may help to increase the overall sales average price. As for capacity expansion, it may continue to be the revenue driver for its 2025 fiscal year.

Ganfeng Lithium rose more than 6%, with institutions stating that the global excess supply of lithium is gradually narrowing.

Ganfeng Lithium (01772.HK) rose 6.62% to close at HK$24.15. According to news reports, Citic Securities released a report stating that the global excess supply of lithium is gradually narrowing, with short-term supply and demand already improving. The report pointed out that the decline in lithium prices has led to major lithium-producing regions worldwide falling into losses and reducing production stops, and the pace of commissioning of projects under construction has also significantly slowed down.