①What news has spurred the rise in brokerage stocks? ②Why did gold stocks retreat ahead of the Federal Reserve’s interest rate meeting?
Cailian Press, December 8 (Editor Hu Jiarong) Today, Hong Kong's three major stock indices showed divergent trends. By the close, the Hang Seng Index fell 1.23% to 25,765.36 points; the Hang Seng Tech Index closed flat at 5,662.55 points; and the Hang Seng China Enterprises Index dropped 1.25% to 9,083.53 points.
Today's Market
In terms of market performance, securities, semiconductor, and battery-related stocks performed notably well, while gold and coal stocks generally weakened.
Policy support boosts brokerage stocks
By the close, Huatai Securities (06886.HK) rose 5.17%, GF Securities (01776.HK) increased by 3.10%, and CITIC Securities (06066.HK) gained 1.69%.
On the news front, CSRC Chairman Wu Qing delivered an important speech on December 6 at the eighth member conference of the China Securities Association, emphasizing the promotion of differentiated and specialized development for investment banks. Regulatory policies will adopt a “support the strong, restrict the weak” principle, with appropriate “relaxation” for high-quality, compliant, and stable institutions. Wu Qing particularly pointed out that building top-tier investment banks is not an “exclusive” or “patented” privilege for leading firms. Medium and small brokerages should leverage their strengths, focusing on niche markets, specialized customer groups, and key regions to develop into “small but beautiful” boutique investment banks.
The semiconductor industry chain saw robust growth
By the close, Hua Hong Semiconductor (01347.HK) surged 4.47%, EnnoSilicon (02577.HK) climbed 3.83%, and SMIC (00981.HK) gained 2.94%.
Regarding recent developments, revenue from high-tech industries grew 14.7% year-on-year in the first 11 months of this year. High-tech services expanded by 17.2%, and high-tech manufacturing grew by 11.1%. Particularly noteworthy was the robust growth in advanced manufacturing sectors such as integrated circuits and industrial mother machines, which achieved revenue increases of 19.3% and 11%, respectively.
Battery stocks gain investor favor
At the close, Ganfeng Lithium (01772.HK) rose 6.95%, CATL (03750.HK) rose 3.28%, and Hongqiao Group (08137.HK) rose 3.23%.
On the news front, according to reports from the North Star Energy Storage Network, Matt Shen, General Manager of CATL's European operations, recently announced in Debrecen, Hungary, that the company’s local battery factory will commence cell mass production in March-April 2026, with the exact timing dependent on permit approval progress. The plant is planned to have an annual production capacity of 40GWh, all of which has already been booked by customers.
Gold and coal stocks underperformed.
Affected by the upcoming Federal Reserve interest rate decision meeting, gold stocks generally declined, with Zijin Gold International (02259.HK) falling 4.14%, Zhaojin Mining (01815.HK) dropping 3.46%, and Shandong Gold (01787.HK) declining 3.16%.
Market analysis pointed out that although the long-term upward logic for precious metals remains unchanged, short-term prices have already fully reflected expectations of interest rate cuts. Investors need to be cautious about Federal Reserve Chair Powell potentially releasing less dovish signals than expected during the press conference following the December 11 meeting, which could lead to price pullbacks.
The coal sector also performed poorly, with China Qinfa (00866.HK) falling 11.25%, China Coal Energy (01898.HK) dropping 4.83%, and Jinma Energy (06885.HK) declining 4.17%.
A research report from Cinda Securities noted that weak demand for coal may persist, with supply constraints unlikely to ease significantly. The market is currently at the early stage of a new upturn in the coal economic cycle, with fundamental and policy factors aligning. At this stage, it is an opportune time to allocate to the coal sector on dips.
Unusual stock price movements.
Pop Mart fell over 8% as recent short-selling volumes surged 158%.
Pop Mart (09992.HK) dropped 8.29%, closing at HKD 200.40. A recent report from Deutsche Bank noted that to meet surging demand, Pop Mart increased Labubu's production capacity from 10 million units in the first half of the year to an average of 50 million units per month by the end of the year. The bank cautioned that for trendy toy brands driven by unique designs and scarcity, large-scale mass production often foreshadows waning popularity.
Notably, bearish sentiment in the market has been intensifying. Pop Mart’s short-selling data has significantly increased recently. Since December 2, the number of short-sold shares rose from 1.1106 million to 1.6170 million, while the corresponding short-selling amount surged from HKD 241 million to HKD 623 million during the same period.
Andre Juice fell nearly 3% after Guangzhou Uni-President announced plans to reduce its stake by no more than 1%.
Andre Juice (02218.HK) fell by 2.80%, closing at HKD 13.55. In terms of news, Andre Juice announced on December 5 that Guangzhou Uni-President Enterprise Co., Ltd., a shareholder holding more than 5% of the company's shares, plans to reduce its stake by no more than 3.412 million shares through centralized bidding, representing 1.00% of the company's total share capital.
