Hong Kong stocks came under pressure and trended lower today, with the Hang Seng Index falling more than 1% and once again dropping below the 26,000-point threshold.
According to Zhitong Finance, the Hong Kong stock market came under pressure and declined today, with the Hang Seng Index falling over 1% and losing the 26,000-point level again. At the close, the Hang Seng Index was down 1.23%, or 319.72 points, at 25,965.36 points, with a total turnover of HKD 206.23 billion; the Hang Seng China Enterprises Index fell 1.25% to 9,083.53 points; the Hang Seng Tech Index closed flat at 5,662.55 points.
BOC International noted that investors should remain calm in the face of recent stock market volatility and avoid excessive concern. It is normal for stock markets to experience adjustments during bull markets, and short-term fluctuations do not change the upward trend of Hong Kong stocks. Looking ahead to 2026, the bank believes that the momentum towards stabilizing and improving the capital market will remain unchanged.
Performance of Blue-Chip Stocks
Baidu Group-SW (09888) led the blue chips higher. At the close, it rose 3.45% to HKD 125.8, with a turnover of HKD 3.041 billion, contributing 8.38 points to the Hang Seng Index. Baidu Group announced that on December 5, it had taken note of media reports stating that the company plans to spin off its non-wholly owned subsidiary Kunlun Chip (Beijing) Technology Co., Ltd. for an independent listing. The company hereby clarified that it is currently evaluating the proposed spin-off and listing. If the proposed spin-off and listing proceed, they will be subject to relevant regulatory approval processes, and the company does not guarantee that the proposed spin-off and listing will occur.
Among other blue chips, SMIC (00981) rose 2.94% to HKD 71.8, contributing 14.49 points to the Hang Seng Index; Ping An (02318) rose 2.15% to HKD 61.75, contributing 13.68 points to the Hang Seng Index; China Construction Bank (00939) fell 4.01% to HKD 7.66, dragging down the Hang Seng Index by 54.39 points; China Merchants Bank (03968) fell 3.54% to HKD 51.8, dragging down the Hang Seng Index by 11.63 points.
In terms of popular sectors,
On the broader market, large-cap tech stocks generally declined, with Alibaba falling over 1% and Tencent dropping 0.82%. The chairman of the CSRC mentioned appropriate "easing" for high-quality institutions, leading to a rise in Chinese brokerages against the trend; optical communication concept stocks advanced, with Huiju Technology rising over 7%; chip stocks performed actively, with Huahong Semiconductor surging over 4%; lithium battery stocks and some insurance stocks showed positive performance. On the other hand, following the announcement of the new version of the medical insurance drug list, pharmaceutical stocks opened higher but closed lower; the market awaited this week’s Fed interest rate meeting, causing gold stocks to collectively fall; coal, domestic banking stocks, and new consumption stocks also declined.
1. Chinese brokerages rose against the trend. At the close, Huatai Securities (06886) rose 5.17% to HKD 19.33; GF Securities (01776) gained 3.1% to HKD 17.94; CITIC Securities (06066) climbed 2.99% to HKD 12.76; and China Merchants Securities (06099) rose 2.82% to HKD 15.29.
CSRC Chairman Wu Qing, speaking at the eighth general membership meeting of the Securities Association of China, stated that efforts must be accelerated to build top-tier investment banks and institutions. The CSRC will provide appropriate “relief” to high-quality institutions, further optimizing risk control indicators and moderately relaxing capital constraints and leverage limits. Guotai Haitong Securities noted that leading brokerages are expected to accelerate self-operated market-making, derivatives, institutional businesses, and wealth management under relaxed capital constraints, driving up ROE and strengthening valuation benchmarks. BOC International believes that the current valuation of the brokerage sector is at a historically low level and has room for upward revision amid improving industry sentiment.
2. Optical communication concept stocks were active. At the close, Huiju Technology (01729) rose 7.65% to HKD 17.02; Cambridge Technology (06166) climbed 5.68% to HKD 86.5; and Yangtze Optical Fiber and Cable (06869) gained 3.59% to HKD 36.34.
With the rapid development of artificial intelligence, the communications industry has entered a boom cycle. Huatai Securities previously pointed out that increased global investment in AI computing power is expected to drive continued high growth in net profit attributable to parent companies in the optical communications sector; net profit attributable to parent companies in the telecom operator sector is expected to maintain steady growth; the ICT equipment and IDC sectors are expected to continue benefiting from increased capital expenditures by internet giants; the copper connectivity sector is expected to continue releasing capacity to realize net profit growth attributable to parent companies; and demand for hollow-core fiber, submarine cables, and DCI in the optical fiber and cable sector deserves attention.
3. Most lithium stocks rose. At the close, Ganfeng Lithium (01772) surged 6.95% to HKD 51.25; CATL (03750) gained 3.28% to HKD 506.5; and Tianqi Lithium (09696) rose 3.16% to HKD 48.28.
Huayuan Securities released a research report stating that entering December, the downstream of the lithium battery industry will enter a slack season. Coupled with expectations for the resumption of production at the Jianxiawo lithium mine, short-term supply-demand contradictions in lithium carbonate may ease, and lithium prices might face downward pressure in the near term. Looking ahead to next year, against the backdrop of stronger-than-expected growth in lithium battery demand, lithium salt is expected to enter a destocking cycle, reversing the supply-demand dynamics of lithium carbonate. Lithium prices are likely to enter an upward cycle driven by demand, and companies in the lithium sector may see a turning point in profits. Huatai Securities believes that profitability across all segments of the lithium battery supply chain materials will improve, achieving both volume and profit growth.
4. Pharmaceutical stocks opened high but closed low. By the close, JW Therapeutics-B (02126) rose 5.52% to HKD 3.25; Ascletis Pharma-B (01672) gained 4.98% to HKD 14.33. On the downside, RemeGen (09995) fell 10.3% to HKD 79.25; Innovent Bio (01801), which turned “blue chip” today, dropped 6.96% to HKD 85.6.
On December 7, the National Healthcare Security Administration released the 2025 editions of the 'National Basic Medical Insurance, Maternity Insurance, and Work-related Injury Insurance Drug Catalog' and the 'Commercial Health Insurance Innovative Drug Catalog.' The 2025 National Medical Insurance Drug Catalog successfully added 114 new drugs, including 50 first-class innovative drugs, with an overall success rate of 88%, significantly higher than the 76% achieved in 2024. Nineteen drugs were included in the inaugural commercial insurance innovative drug catalog, covering treatments such as CAR-T for cancer, neuroblastoma, Gaucher's disease, and Alzheimer’s disease therapies.
Popular movers
1. Two newly listed stocks debuted on the market today. By the close, Zhirui Education Technology (02687) surged 87.26% to HKD 126.4, while Novosense Microelectronics (02676) declined 4.31% to HKD 111.
Zhirui Education Technology is a provider of digital solutions for higher education institutions. Founded in 2008, the company launched its brand 'Wisdom Tree' in 2013. According to Frost & Sullivan, based on 2024 revenue, Zhirui Education Technology ranked second in China’s higher education digital teaching market with a market share of 4.0%. The prospectus shows that Novosense Microelectronics operates under a fabless model, focusing on chip research and development and design while outsourcing wafer manufacturing to external foundries and most packaging and testing to third-party service providers.
2. Refire Energy (02570), having completed one year since its listing, faced the lifting of trading restrictions. By the close, it fell 27.33% to HKD 84.95.
On December 8, Refire Energy entered its first trading day after completing one year since its listing. According to a previous announcement, the final day of the lock-up period for pre-IPO investors and existing shareholders was December 5, 2025. Data indicates that a total of 55 shareholders of Refire Energy faced lifted restrictions, involving 54,213,600 shares.
3. Yino Pharmaceuticals-B (02591) saw profit-taking, closing down 14.32% to HKD 37.7.
The Shanghai Stock Exchange and Shenzhen Stock Exchange announced that due to adjustments in the constituent stocks of the Hang Seng Composite MidCap Index, changes have been made to the list of eligible securities under the Stock Connect program. Yino Pharmaceuticals has been added to the Stock Connect list effective from December 8, 2025. Additionally, the company’s self-developed ultra-long-acting GLP-1 receptor agonist Eshopagluride α (Yinuo Light) has officially been included in the 2025 National Medical Insurance Drug Catalog and will be implemented concurrently with the updated catalog starting January 1, 2026.
4. RoboSense (02498) performed strongly, closing up 5.23% at HKD 34.58.
RoboSense announced that it has secured a new production定点 for a well-known bestselling model from FAW Toyota, with a cumulative order volume of nearly one million units over five years. This marks another significant collaboration between RoboSense and FAW Toyota following the exclusive three-year定点 agreement for a certain electric vehicle model, achieved once again through its leading digital LiDAR technology.
