Hong Kong stocks opened lower in the morning and quickly rose, then showed narrow fluctuations throughout the day, with the Hang Seng Index returning to the 4400-point mark.
According to the Mass Finance app, Hong Kong stocks opened lower in the morning and quickly rose, then showed narrow fluctuations throughout the day, with the Hang Seng Index returning to the 4400-point mark. As of the close, the Hang Seng Index rose by 0.21% or 41.34 points to 19,705.51 points. Trading volume in the market was reduced compared to the previous day, with a total daily turnover of 114.671 billion Hong Kong dollars; The Hang Seng China Enterprises Index rose by 0.12% to 7,090.86 points; The Hang Seng Tech Index rose by 0.41% to 4,413.08 points.
Centaline International indicated that after the increase in price and volume from the end of September to early October, the turnover and volatility of Hong Kong stocks gradually declined, and market sentiment clearly weakened. The current market is entering a policy vacuum period, with a significant decrease in Hong Kong stock trading volume and a weakening earnings effect, compounded by the strengthening US dollar which is unfavorable for the short-term performance of Hong Kong stocks. However, the Hang Seng Index has technical support in the short term at 19,500 points, and the key to future resilience depends on the sustainability of economic recovery momentum.
Blue chip performance
Sino Biopharmaceutical (01177) performed well. As of the close, it rose by 3.36% to 3.38 Hong Kong dollars, with a turnover of 0.245 billion Hong Kong dollars, contributing 1.85 points to the Hang Seng Index. On November 20th, Sino Biopharmaceutical announced a private equity investment and strategic cooperation agreement with Eli Lilly and Co. In accordance with this agreement, Sino Biopharmaceutical will invest in Eli Lilly and Co. with self-raised funds, and will strategically cooperate on LM-108 and potential future innovative bispecific antibodies or antibody-drug conjugates (ADCs) in mainland China.
For other blue chips, Shenzhou International Group Holdings Limited Unsponsored ADR (02313) rose by 6.14% to 61.35 Hong Kong dollars, contributing 4.83 points to the Hang Seng Index; Hansoh Pharma (03692) rose by 4.08% to 17.86 Hong Kong dollars, contributing 1.36 points to the Hang Seng Index; Tingyi (00322) fell by 2.92% to 10.64 Hong Kong dollars, dragging the Hang Seng Index down by 1.03 points; Zhongsheng Hldg (00881) fell by 1.93% to 17.32 Hong Kong dollars, dragging the Hang Seng Index down by 0.45 points.
Hot sectors
On the market, large technology stocks fluctuated, with Meituan and Tencent up more than 1%, while alibaba continued to decline by 0.59%. AI applications continue to catalyze both domestically and abroad, with AI concept stocks surging, and Mobvista skyrocketing by 37%; Bitcoin rising to $0.093 million, driving strength in crypto concept stocks, and OKG Tech rising over 10%; Most pharmaceutical stocks showed strong performance, with Laike Pharmaceuticals soaring by over 48% with significant trading volume, announcing a clinical cooperation with Eli Lilly on a 'new obesity drug.' On the other hand, the automotive industry chain, mainland real estate stocks, etc. declined; performance of pulp and paper stocks varied, with Shandong Chenming Paper's overdue debt exceeding 1.8 billion, causing the stock price to plummet by nearly 23%.
1. AI concept stocks surged. As of the close, Mobvista (01860) rose by 37.44% to HK$8.37; Kingsoft Cloud (03896) rose by 26.72% to HK$3.13; Fourth Paradigm (06682) rose by 19.67% to HK$43.8; Medbanks Technology (02158) rose by 18.85% to HK$5.99; Innovation Egis (02121) rose by 8.07% to HK$5.09; Weimob Inc (02013) rose by 6.02% to HK$1.76.
Recently, AI applications have continued to catalyze both domestically and abroad. As of the closing on November 20th, U.S. AI e-commerce concept stock AppLovin has surged by a cumulative 706% for the year; domestic AI products are also accelerating, according to the latest AI product application ranking (APP), Dou Bao, Baidu Wen Xiao Yan, and Moonshot Kimi have all active users exceeding tens of millions. Institutions believe that recently, overseas AI application vendors and AI application access data show that some AI application business models are gradually becoming clearer, with a gradual increase in user payment willingness and a visible turning point in profit growth, which is expected to positively impact the domestic AI application industry.
2. Bitcoin concept stocks lead the gains. As of the close, OKG Tech (01499) rose by 10.89% to HK$0.224; Meitu (01357) rose by 10.44% to HK$3.28; Sinohope Tech (01611) rose by 8.72% to HK$2.37; Grandshores (01647) rose by 8% to HK$0.108.
Bitcoin hit a new all-time high on Tuesday, soaring to $93,625 at one point, accumulating an increase of about 40% since Donald Trump won the election. Year-to-date, Bitcoin has surged over 100%. It is worth noting that according to the Hong Kong Securities and Futures Commission, on October 28th, Ye Zhiheng, Executive Director of the Hong Kong Securities and Futures Commission's Intermediaries Division, stated that virtual assets have become a significant agenda for the Hong Kong Securities and Futures Commission and major financial regulators. There is a considerable amount of virtual asset trading in the market, and compared to 2023, Hong Kong's virtual asset trading volume recorded its largest year-on-year increase in 2024.
3. Most pharmaceutical stocks soared. As of the close, Laike Pharmaceuticals-B (02105) rose by 48.3% to HK$15.72; Science and Culture Pharmaceutical-B (02171) rose by 12.52% to HK$7.37; Remegen (09995) rose by 11.17% to HK$18.12; Aimed Bio-B (01541) rose by 9.92% to HK$8.42.
Haitong Securities pointed out that against the backdrop of a US interest rate cut, the moderate recovery of the biopharmaceutical industry's investment and financing has become a certain trend. As of November 5, 2024, the total amount of overseas biopharmaceutical investment and financing for the year has reached $45.3 billion, exceeding the full year of 2023 at $41.7 billion, and 2022 at $44.2 billion. Domestic demand is still bottoming out. The firm believes that the current domestic biopharmaceutical investment and financing are still at a stage supported by policies. Expectations are for incremental government fund guidance, local financial inputs, gradual opening up of capital market IPOs and refinancing, gradually reversing the downward trend of biopharmaceutical investment and financing.
4. Mainland real estate stocks showed a general decline. As of the close, R&F Properties (02777) fell by 4.98% to HK$1.91; Sunac (01918) fell by 4.04% to HK$2.61; Agile Group (03383) fell by 3.53% to HK$0.82; Shimao Group (00813) fell by 2.48% to HK$1.18.
Following Peking and Shanghai, Shenzhen has also officially announced the cancellation of the standards for ordinary and non-ordinary housing. Shenzhen issued a document stating that starting from December 1, 2024, the standards for ordinary and non-ordinary housing will be cancelled. Individuals who sell housing purchased for more than 2 years (including 2 years) will be exempt from value-added tax. Individuals who sell housing purchased for less than 2 years will need to pay the full value-added tax at a rate of 5%.
Guangzhou Anju Group announced that it will acquire existing commercial housing below 90 square meters throughout the city as indemnificatory apartments. Developers interested in participating can apply from November 18 to December 18. Guosen Securities pointed out that with the policy effects on demand evident at the end of September, both sales volume and price indicators have marginally improved, but development investment has not yet turned around. The future trends in the real estate sector will depend on the progress of policies such as land recovery of existing properties and urban village expansion, as well as the sustainability of the recovery in property sales volume and prices.
Popular fluctuating stocks
1. SPROCOMM INTEL (01401) stock price plummeted. As of the closing, it fell by 87.96% to 1.5 Hong Kong dollars.
On November 19, the Hong Kong Securities and Futures Commission announced that SPROCOMM INTEL has a highly concentrated shareholding structure. The commission warned that due to the high concentration of shares among a few shareholders, even a small volume of share transactions could lead to significant price fluctuations in the company's shares. Shareholders and prospective investors are advised to exercise caution when buying and selling the company's shares.
2. Shandong Chenming Paper (01812) experienced a sharp decline throughout the day. As of the closing, it dropped by 22.94% to 1.31 Hong Kong dollars.
Shandong Chenming Paper announced that due to the downturn in the papermaking business, the company is facing an overdue debt of up to 2.394 billion yuan. As a result, about 71.7% of the production capacity has been forced to cease production or limit production, affecting monthly pulp production by approximately 0.58 million tons and paper sales by about 0.35 million tons. The company is actively raising working capital and striving to resume production.
3. Link Health Group-B (02105) surged in the afternoon. As of the closing, it rose by 48.3% to 15.72 Hong Kong dollars.
Sinohope Tech announced at noon that the group has signed a clinical cooperation agreement with Eli Lilly and Co. to support and accelerate the global clinical development of LAE102 for the treatment of obesity. Eli Lilly will be responsible for conducting a Phase I study in the United States and will bear the related costs. The group retains the global rights to LAE102.
The 'Kingsoft Group' soared after the performance. As of the close, Kingsoft Cloud (03896) rose by 26.72%, to HK$3.13; Kingsoft Software (03888) rose by 9.42%, to HK$31.95.
Kingsoft Cloud announced its performance for the third quarter of 2024, with total revenue reaching RMB 1.886 billion, a 16.0% year-on-year increase; adjusted EBITDA reached 0.19 billion yuan, adjusted EBITDA margin reached 9.8%, continuing to improve steadily on the basis of turning positive in the first two quarters, and a significant year-on-year increase of 12.6 percentage points.
Kingsoft Software achieved revenue of approximately 2.915 billion yuan in the third quarter, a year-on-year increase of 42% and a quarter-on-quarter increase of 18%; operating profit of approximately 1.144 billion yuan, a year-on-year increase of 204% and a quarter-on-quarter increase of 44%; the profit attributable to owners of the parent company was approximately 0.413 billion yuan, a year-on-year increase of 13.51 times and a quarter-on-quarter increase of 5%.
HKBN resumed trading and rose. As of the close, it rose by 6.73%, to HK$4.6.
HKBN announced that the Board of Directors has received an indicative non-binding proposal from China Mobile Hong Kong, indicating its potential cash acquisition offer to acquire all the company's issued ordinary shares. The company is still discussing the terms of the proposal with China Mobile Hong Kong. Earlier rumors suggested that China Mobile is willing to acquire the major shareholder's stake in HKBN for at least HK$5 per share.