According to the Wise Finance APP, the Heng Science Index expanded by nearly 3%, with tech stocks generally declining among constituent stocks, Alibaba down nearly 5%, stock price currently on a seven-day losing streak. As of the time of publication, Alibaba-W (09988) fell by 4.5%, trading at 80.6 Hong Kong dollars; Tencent (00700) fell by 1.77%, trading at 400.4 Hong Kong dollars.

On the news front, on November 22nd, the US Dollar Index rose to 107.18, hitting a new high since October 2023. Everbright Securities pointed out that Trump 2.0 policy proposals are still expected to lead to a strong US dollar, but considering the controllable inflation risks in the US and the Federal Reserve's core objective of stabilizing employment, the pressure on Hong Kong stocks from a US dollar rate cut is relatively small. Since 2014, due to insufficient domestic demand in China, the country has become more reliant on exports. The new round of tariff policies is expected to advance faster, cover a wider range, and be more forceful than the previous round, posing a more significant impact on China's exports and economic fundamentals compared to the Trump 1.0 era.

Haitong International recently pointed out that with the impact of the strong US dollar, markets across the Asia-Pacific region are generally declining; the Heng Science Index has dropped by 20% from its high point on 10/7 due to excessive gains in previous periods, indicating a sufficient pullback. Since most internet giants have retraced more than half of their gains from late September to early October, the subsequent stabilization and rebound in Hong Kong stocks will require a rebound in internet stocks, particularly companies with third-quarter performance and fourth-quarter guidance exceeding expectations.