Today, the Hong Kong stock market surged in the morning and maintained a volatile trend in the afternoon, with the Hang Seng Index slightly down 0.04%, the National Index up 0.02%, and the Hang Seng TECH Index up 0.69%, reaching a high of 1.5% during the session.
On the market, most large technology stocks declined, with reports indicating investment in the development of AI large-scale models; Xiaomi rose over 4%, JD.com fell by 3.55%, and Meituan, Tencent, Baidu, and Alibaba all showed losses.
The prospects for domestic substitution are broad; semiconductor chip stocks were strong throughout the day, with Goldman Sachs optimistic about the company's revenue prospects, as leading chipmaker Semiconductor Manufacturing International Corporation rose over 5%. Software stocks and electronic consumer concept stocks saw significant gains, with Kingsoft Cloud surging nearly 38% to a new high, and SMOORE INTL gaining over 11%.
Apple Supplier stocks, Defense stocks, Coal Industrial Concept stocks, Pulp and Paper stocks, Heavy Equipment stocks, China-Affiliated Brokerage stocks, and Gaming stocks mostly performed actively.
On the other hand, auto retailers saw notable declines, with leading Zhongsheng Holdings falling over 4%, cosmetic stock SA SA INT'L dropping nearly 3%, while home appliance stocks, dining stocks, and dairy product stocks generally declined, HAIDILAO dropping 3.5%, and HAIER SMARTHOME and HISENSE HA each falling over 2%.
Specifically:
The consumer electronics sector had significant gains, with YIDU rising over 20%, SMOORE INTL up over 11%, IDT INT'L increasing over 8%, and SUGA INT'L gaining over 2%.
The Semiconductor Sector surged, with HG SEMI rising over 6%, Semiconductor Manufacturing International Corporation and HUA HONG SEMI up over 4%, SOLOMON SYSTECH gaining over 3%, CE HUADA TECH increasing over 2%, and SHANGHAI FUDAN climbing over 1%.
Xiaomi-Backed stocks strengthened, with Xiaomi Group at one point rising over 6%, ultimately closing up 4.27%, with stock prices nearing a historic high of HKD 35.9 per share, a nearly 119% increase this year. Kingsoft Cloud rose over 37%, with a cumulative increase of over 387% in the past 4 months, Kingsoft gained nearly 2%, with a cumulative increase of over 43% this year.
According to media reports, Xiaomi is working on building its own GPU cloud cluster, and this plan has been in implementation for several months, with Xiaomi making significant investments in the AI large model field. Last April, Xiaomi established an AI lab large model team, which had already secured 6,500 GPU resources at the time of formation. In May this year, Xiaomi's large language model "MiLM" was officially registered as a large model. It is reported that Xiaomi intends to recruit Luo Fuli, a key developer of the DeepSeek open-source large model DeepSeek-V2, demonstrating Xiaomi's determination to aggressively enter the AI field.
Defense stocks rose, with AVICHINA up over 3% and Cssc Offshore & Marine Engineering rising over 1%.
The Railways and Highways sector surged, with CHENGDU EXPWAY rising over 7%, ANHUIEXPRESSWAY increasing over 5%, CANGGANGRAILWAY gaining over 3%, YUEXIUTRANSPORT up over 2%, and SICHUAN EXPRESS, BAY AREA DEV, and SHENZHEN INT'L all rising over 1%.
The Electric Vehicles sector performed actively, with LI AUTO increasing over 6%, BRILLIANCE CHI rising over 5%, Xiaomi-Backed gaining over 4%, LEAPMOTOR and NIO rising over 3%, and BAIC GROUP up over 1%.
Most Coal Industrial Concept stocks rose, with China Shenhua Energy, YANCOAL AUS, and SHOUGANG RES increasing over 1%.
Most Contract Research Organizations concepts declined, with TIGERMED and WUXI APPTEC falling over 3%, Asymchem Laboratories and PHARMARON dropping over 2%.
Green Energy Concept stocks weakened, FLAT GLASS, Goldwind Science& Technology, and XINTE ENERGY dropped over 4%, ENN ENERGY fell over 2%, and HUADIAN POWER, CHINA RES POWER, and HUANENG POWER dropped more than 1%.
Dining stocks declined, with Little Garden dropping over 4%, JIUMAOJIU and HAIDILAO falling over 3%, and Helen's dropping nearly 2%.
Today, southbound funds had a net purchase of 84.93 million Hong Kong dollars, including a net purchase of 3.918 billion Hong Kong dollars via Stock Connect (Shanghai) and a net purchase of 4.575 billion Hong Kong dollars via Stock Connect (Shenzhen).
Looking ahead, GTJA Hong Kong believes that the Federal Reserve will continue to lower interest rates in 2025, and the valuation of Hong Kong stocks will continue to improve marginally. In the future, Hong Kong stocks will maintain an upward trend with volatility, and investors need to focus on structural industry opportunities. It believes that the Hong Kong stock market will primarily show an "N"-shaped upward movement, with plenty of elastic opportunities within this phase, but active search for structural industry opportunities is essential.
