The three major Hong Kong stock indices were all lower in morning trading.
By the midday close, the Hang Seng Index had declined by 1.13% to 23,500.21 points, while the Hang Seng Tech Index dropped 2.21% and the Hang Seng China Enterprises Index fell 1.20%.
Across the market, technology and internet stocks were broadly lower.
Bilibili Inc. and JD.com, Inc. both fell more than 4%, while Xiaomi Corporation, Kuaishou Technology, Tencent Holdings Limited, Meituan, and Alibaba Group Holding Limited all dropped over 3%.
In contrast, healthcare stocks showed resilience.
Shandong Xinhua Pharmaceutical Company Limited (SHANDONG XINHUA) surged more than 11%.
Gold-related stocks extended their losses, with Zijin Mining Group Company Limited falling nearly 6%.
The artificial intelligence sector also saw a collective decline, with Zhipu AI tumbling more than 11%.
Two new listings debuted today: Huajian Future plummeted 46% on its first trading day, while Xing Yuan Cai Zhi gained over 30%.
Healthcare Sector Shows Strength
Healthcare stocks bucked the broader market downturn to trade actively.
The significant gain for Shandong Xinhua Pharmaceutical Company Limited followed news that its self-developed Class 1 innovative drug, LXH-2103 injection, received a clinical trial approval notice from the National Medical Products Administration.
The approval allows the company to commence clinical trials for the treatment of moderate to severe post-operative pain, marking a key step forward in its original innovative drug research and its strategic layout in the field of narcotic and psychotropic substances.
Gold Stocks Extend Losses
Gold stocks continued their downward trend.
In early Asian trading, spot gold prices fell sharply, dropping 1% to break below the $4,150 per ounce level.
From a technical perspective, after international gold prices breached the key $4,200 support level, short-term bearish sentiment remains dominant.
Growing market concerns over further interest rate hikes by the U.S. Federal Reserve have boosted the U.S. dollar and Treasury yields, directly dampening the investment appeal of non-yielding gold.
Weakening expectations for gold's future performance from some institutions have also impacted market confidence in holding the metal.
Furthermore, fluctuating geopolitical tensions have meant gold's traditional safe-haven properties have not been effectively utilized in the current environment.
AI Sector in Decline
The artificial intelligence sector experienced a broad sell-off.
Yesterday, Zhipu AI's stock had soared over 40% at one point, pushing its market value above one trillion Hong Kong dollars, driven by news related to its latest flagship model and comments from its founder on the gap between Chinese and U.S. models.
New Listings Debut
Two companies made their market debut today with sharply divergent performances.
According to its prospectus, Huajian Future focuses on the research and development of small-molecule chemical drugs, targeting areas including oncology, autoimmune diseases, and metabolic system disorders.
The company possesses three core products—HJ787, HJ178, and HJ891—all of which are self-developed, small-molecule, Class 1 innovative drugs as classified by the NMPA.
To date, Huajian Future has no products approved for commercial sale and has not generated any revenue from product sales.
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