Hong Kong's three major indices all moved lower. By the midday close, the Hang Seng Index had dropped 0.92% to 24,092.89, the Hang Seng Tech Index had fallen 1.41%, and the China Enterprises Index was down 1.04%.
On the sector front, internet stocks declined broadly, with Alibaba down more than 4%, and JD.com and Kuaishou each falling over 3%. Biopharmaceutical stocks bucked the trend and traded actively, with WUXI APPTEC gaining nearly 3%. Gold stocks retreated, with Zijin Gold International tumbling over 7%. Auto stocks weakened, with Li Auto dropping more than 3%. Two new stocks listed today.
Biopharmaceutical stocks bucked the trend and traded actively, with WUXI APPTEC gaining nearly 3%. WUXI APPTEC recently announced that the company was informed of the Department of Defense's decision to remove WUXI APPTEC from the CMC list under Section 1260H. The Deputy Secretary of Defense determined that the court-approved order granting the company's preliminary injunction motion should be complied with, removing WUXI APPTEC from the Department of Defense's updated 1260H list. CLSA believes this move is expected to further alleviate the company's geopolitical risks and continues to view WUXI APPTEC as one of the core holdings in global healthcare portfolios.
Gold stocks retreated, with Zijin Gold International tumbling over 7%. After U.S. October inflation data was released, the probability of the Federal Reserve raising rates by 50 basis points next month climbed sharply. According to the CME FedWatch Tool, traders now expect a 100% probability of a Fed rate hike in December, with a 12.7% chance of a 50 basis point increase. Fed Governor Waller said that under these circumstances, the December policy meeting should consider a 50 basis point rate hike. International gold prices once again fell below the $4,000 mark.
Auto stocks weakened, with Li Auto dropping more than 3%. On the sales data front, domestic demand remains under pressure, with exports being the only bright spot. October domestic auto sales totaled 1.95 million units, down 26.6% year-on-year, marking the seventh consecutive month of year-on-year declines exceeding 20%. From November 1 to 8, national passenger vehicle retail sales reached 293,000 units, down 21% year-on-year. October auto exports totaled 1.066 million units, up 60.2% year-on-year, with monthly export volumes remaining above 1 million units for five consecutive months. Cumulative exports for January through October reached 9.271 million units, up 65.1% year-on-year. A Citigroup report dated November 9 noted that electric vehicle orders in the first week of November rose 4% month-on-month, a "slightly positive" trend, but it expects new energy retail sales in November to still decline 5.9% year-on-year.
Two new stocks listed today, with Yiwei Technology surging over 81% and Hongxinyu dipping 0.04%. Yiwei Technology specializes in SLAM-specific SoCs for mobile robots and full-stack perception and navigation solutions. The company's issue price was HK$9.90 per share, at the midpoint of the IPO range of HK$9.27 to HK$11.58, raising approximately HK$710 million. Hongxinyu is a leading domestic independent storage solutions provider, with performance surging amid the storage super-cycle driven by AI computing power. The company's issue price was HK$72.83 per share, close to the lower limit of the IPO range of HK$72.29 to HK$82.90, raising a total of approximately HK$1.072 billion.
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