Hong Kong's three major indices collectively fell in morning trading. By the midday close, the Hang Seng Index had dropped 2.29% to 24,748.65 points, the Hang Seng Tech Index declined 1.49%, and the Hang Seng China Enterprises Index fell 2.19%. In terms of sector performance, technology and internet stocks declined broadly, with Meituan down over 6%. Bilibili, Baidu, Alibaba, and JD.com all fell more than 3%. Gold stocks were among the biggest decliners, with Lingbao Gold dropping over 9%. Chinese securities brokerage stocks also saw broad declines, with China Securities falling more than 4%. Innovative drug concept stocks continued their downward trend, with WuXi XDC falling over 6%.
Gold stocks were notably weak, with Lingbao Gold down over 9%. Stalled negotiations between the US and Iran have reignited inflation concerns, while rising expectations for Federal Reserve interest rate hikes have put pressure on gold prices, leading to a volatile downtrend in international spot gold. Additionally, India's recent increase in import duties on gold and silver to 15% has suppressed physical demand. Reports indicate that UBS has lowered its gold price forecast in a recent report, now expecting gold to reach $5,500 per ounce by the end of 2026 and the first half of 2027, a reduction of $200 to $400 from its previous forecast.
Chinese securities brokerage stocks declined broadly, with China Securities down over 4%. The recent weakness in Hong Kong-listed Chinese brokerage stocks is primarily attributed to direct regulatory pressure on illegal cross-border securities activities. Facing industry headwinds, several foreign investment banks have recently lowered their profit forecasts and target prices for Chinese brokerage stocks.
Innovative drug concept stocks continued to fall, with WuXi XDC down over 6%. Analysis suggests that as the clinical data and progress of domestic innovative drugs demonstrate increasingly strong competitiveness globally, their international value continues to be realized. Market participants remain optimistic about differentiated innovation going global, focusing on global clinical advancements and data readouts, and recommend attention to companies possessing high-quality innovation capabilities.
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