According to the Finance and Economics APP, Hong Kong stocks opened low this morning and rose. The Hang Seng Index rose more than 140 points in the early session, but later lacked momentum to rise. In the afternoon, the three major indices successively turned lower, with the Hang Seng Index ultimately closing slightly higher. As of the close, the Hang Seng Index rose 0.04% or 8.21 points to 19159.2 points, with the total daily turnover decreasing to 122.287 billion Hong Kong dollars; the Hang Seng China Enterprises Index fell 0.16% to 6851.56 points; the Hang Seng Tech Index fell 0.31% to 4221.99 points.

Zhongjin believes that in the short term, external pressure and geopolitical disruptions seem to be the main reasons for the 'sudden' market downturn. There are currently three 'expectation gaps' in the market: positive expectations for domestic stimulation previously; simple references to the previous round of tariff response experiences; and loose expectations for Trump's 'alliance strategy' towards the Biden administration. In terms of allocation, caution still prevails in the short term, with around 19000 points being a key support level.

Blue chip performance

Baidu Group-SW (09888) led the blue chips. As of the close, it rose by 4.17% to 81.1 Hong Kong dollars, with a turnover of 1.315 billion Hong Kong dollars, contributing 3.76 points to the Hang Seng Index. Baidu's self-driving online car-hailing platform 'Luobo Kuaipao' plans to conduct trial operations in the Hong Kong area, with the first phase of testing at the airport expected to be completed by the end of this year. The Transport Department of the HKSAR confirmed that Baidu had submitted applications for autonomous driving test initial permits and vehicle certificates last month, still under review. The department will strictly monitor and methodically push for the orderly and safe testing of autonomous vehicles in Hong Kong.

In other blue-chip stocks, Sands China (01928) rose by 3.83% to 19.5 Hong Kong dollars, contributing 2.86 points to the Hang Seng Index; Alibaba Health (00241) rose by 2.27% to 3.6 Hong Kong dollars, contributing 0.83 points to the Hang Seng Index; Shenzhou International Group Holdings Limited Unsponsored ADR (02313) fell by 4.38% to 58.9 Hong Kong dollars, dragging down the Hang Seng Index by 3.61 points; Zhongsheng Holdings (00881) fell by 3.98% to 15.92 Hong Kong dollars, dragging down the Hang Seng Index by 0.91 points.

Hot sectors

On the market, large technology stocks mostly rose, with Baidu up over 4%, JD.com, Alibaba, and Meituan all up over 1%. Many places have started a new round of consumption voucher distribution, dining and other consumer stocks performed actively today; medical device stocks were strong, Xintai Medical once rose over 54%. On the other hand, Bitcoin once fell below $0.093 million, and related concept stocks collectively declined; Trump announced a 10% tariff on Chinese goods, export stocks generally under pressure; tariffs and other geopolitical risks fermenting, shipping stocks showed a weak trend; auto stocks, gold stocks, Apple concept stocks, etc., all declined, and previously active AI application concept stocks experienced an obvious pullback.

1. Dining and other consumer stocks performed actively. As of the close, DPC Dash (01405) rose 6.85% to HK$78; Helens International (09869) rose 5.63% to HK$2.44; Jiumaojiu (09922) rose 2.59% to HK$3.17; Naixue Tea (02150) rose 2.16% to HK$1.42.

With the arrival of the peak consumption season at the end of the year, in order to further stimulate market vitality and boost consumer confidence, various places across the country have launched a new round of consumption voucher distribution activities to promote consumption recovery through practical actions. On November 25, Guangzhou held a press conference on "Boosting Economic Stability and Stimulating Consumption", where Deputy Director of Guangzhou Municipal Bureau of Commerce Luo Zheng revealed that Guangzhou will implement a series of related measures at the end of the year, including distributing 0.1 billion yuan worth of government dining consumption vouchers under the campaign "Dine in Guangzhou". Industry insiders believe that the new round of consumption vouchers is expected to further promote the development of the domestic consumption market, while various new technologies and models are also expected to increase voucher utilization and drive consumption enthusiasm.

2. Bitcoin concept stocks declined. As of the close, Linekong Interactive (08267) fell by 17.65% to HK$0.56; Grandshores Technology (01647) fell by 9.52% to HK$0.095; OKG Tech (01499) fell by 9.41% to HK$0.231; Meitu (01357) fell by 7.87% to HK$2.81.

On the evening of November 25th to the early morning of the 26th, after rising to around $99,000 per coin, the price of Bitcoin turned downwards, falling below the $93,000 mark, with a maximum decline of over 6%. American billionaire and prominent cryptocurrency investor Michael Novogratz once stated that Bitcoin is breaking through a series of records to reach new highs, and investors should be prepared for a brief pullback. He admitted that Bitcoin reaching $0.1 million is "inevitable", but as investors unwind leveraged bets, it could fall by as much as 20%.

3. Shipping stocks showed a weak trend. As of the close, Cosco Shipping Holdings (01919) fell by 4.17% to HK$11.04; Pacific Basin (02343) fell by 2.01% to HK$1.95; OOIL (00316) fell by 1.82% to HK$102.4; COSCO Ship Engy (01138) fell by 1.54% to HK$6.39.

There are rumors of a ceasefire agreement being reached in Lebanon, raising expectations for a ceasefire in the Middle East and resumption of Red Sea traffic. On November 25th, the European main leading contract for shipping index suddenly plunged and eventually hit the limit down in the afternoon, experiencing another drop of over 11% during today's trading. In addition, US President-elect Trump stated that all products entering the US from Mexico and Canada will be subject to a 25% tariff. Trump also announced an additional 10% tariff on Chinese goods. A report from Zheshang Securities pointed out that the trend of the shipping index has been relatively consistent with the geopolitical risk index. It is necessary to pay attention to the impact of the Trump administration's tariff hikes on demand going forward.

4. Gold stocks were generally under pressure. As of the close, China Gold Intl (02099) fell by 7% to HK$38.5; Lingbao Gold (03330) fell by 3.9% to HK$2.96; Zijin Mining Group (02899) fell by 0.53% to HK$14.88; SD Gold (01787) fell by 0.44% to HK$13.52.

According to China Central Television news, on November 25th local time, the United States Axios news quoted a U.S. official as saying that Israel and Hezbollah in Lebanon have reached an agreement on the ceasefire terms. The official stated that the Israeli security cabinet is expected to approve the agreement on the 26th. In addition, last Friday, Trump nominated Scott Besent as Treasury secretary, but he had indicated that he would urge Trump to reduce the deficit to 3% of the GDP during his term. As a result, overnight spot gold plummeted by more than 3%, with spot gold trading at $2,615 per ounce as of the time of publication.

Popular fluctuating stocks

1. Medidata Technology (02158) continued its upward trend. At the close, it rose by 7.57% to HK$5.26.

On November 23rd, the National Medical Security Administration stated at a related press conference that 17 batches of project approval guidelines have been compiled and released to uniformly guide price projects in various regions. In order to support the entry of relatively mature artificial intelligence-assisted technology into clinical applications and prevent additional patient burden, the National Medical Security Administration analyzed the potential application scenarios of artificial intelligence and set up the "artificial intelligence-assisted" extension items in radiological examinations, ultrasound examinations, and rehabilitation projects.

2. Sihuan Pharmaceutical (00460) significantly rose. At the close, it rose by 7.46% to HK$0.72.

Sihuan Pharmaceutical announced a proposal to spin off Xuanzhu Biotech for independent listing on the main board of the Stock Exchange of Hong Kong (SEHK) for its H-shares. As of November 25th, Sihuan Pharmaceutical indirectly owned 56.47% of Xuanzhu Biotech. Upon completion of the proposed spin-off and listing, Xuanzhu Biotech will remain a subsidiary of Sihuan Pharmaceutical. Xuanzhu Biotech submitted an application form for listing on the SEHK to list and trade the H-shares of the spun-off company on the main board of the SEHK.

3. Export stocks all under pressure. At the close, Shenzhou International (02313) fell by 4.38% to HK$58.9; Techtronic Industries (00669) fell by 1.12% to HK$105.6.

According to China Central Television news, on November 25th local time, U.S. President-elect Trump posted on his social media account, stating that he would impose a 10% tariff on all goods imported from China. Citi's research report stated that Techtronic's stock price has recently been dragged down by Trump's possible tariff increase. The firm believes this is a good buying opportunity as Techtronic has historically outperformed macroeconomic and industry performances. In addition, a report from Lyon pointed out that in the medium term, the U.S. tariff policy has limited downside risk for Shenzhou International.