Hong Kong's stock market faced a weak trading session on Tuesday (September 23), with all major indices dropping more than 1%. By the market close, the Hang Seng Index settled at 24,834.12 points, down 253.63 points, or 1.01%. The Hang Seng Tech Index ended the day at 4,379.07 points, losing 59.14 points, or 1.33%.
In terms of market focus, Z.AI (HK02513) suffered another setback, closing sharply lower by 12.40%, hitting a new low since the start of the current correction. Additionally, another Hong Kong-listed large model company, MINIMAX-W (HK00100), fell nearly 4% during the session.
On the news front, two top U.S. AI laboratories launched low-priced versions of their flagship models on the same day. On Tuesday, Anthropic unveiled its next-generation model, Claude Opus 5.5, with usage costs reduced by approximately 40% compared to the previous generation. On the same day, OpenAI rolled out two budget-friendly versions of ChatGPT-6, named Sol and Luna, priced 50% lower than the ChatGPT-5.6 series.
PCB-related stocks bucked the trend with notable gains, as Kingboard Laminates Holdings Ltd (HK01888) surged more than 11%. Morgan Stanley, in its latest report, projected that the global total addressable market (TAM) for copper-clad laminates (CCL) would expand from $19 billion in 2025 to $47 billion by 2030, representing a 20% compound annual growth rate, significantly exceeding the market's general expectation of $35 billion to $40 billion. Among this, AI and data center applications are expected to contribute 90% of the incremental growth.
In terms of sector performance, tech stocks saw more decliners than advancers. Alibaba fell more than 4%, Xiaomi dropped over 3%, while Lenovo edged up 0.49%. Mainland property stocks led the gains, with Ronshine China rising over 22%. China Vanke initially surged more than 15% in morning trading, but weakened in the afternoon, ultimately closing up 4%.
Regarding capital flows, southbound funds continued to post net purchases of Hong Kong stocks. By the close, southbound capital recorded net buying of more than HK$3.4 billion.
Where to look ahead
HSBC Jintrust believes that in the current environment, investors can pay attention to several opportunities in the Hong Kong market. First, opportunities in industries with stronger growth relative to the overall economy and high visibility, such as overseas AI components and supply chains, domestic computing power substitution, AI application segments (including AI pharmaceuticals and software applications), and innovative drugs (supported by ongoing overseas licensing deals and fundamentals that exceed expectations).
Second, sectors with undervalued valuations, potential turning points in fundamentals, and low market expectations, such as leading internet and consumer companies. Third, high-dividend yield assets, including telecommunications operators, financials, utilities, and energy.
Furthermore, the institution believes that in the next phase, both software and hardware technology sectors hold upside potential. After the significant correction in July, valuations in the hardware tech space have generally returned to more reasonable levels. As long as capital expenditure from major North American tech companies has not been revised downward, the growth potential remains relatively clear. The certainty of domestic computing power growth is also quite evident, and continued improvements in penetration rates can still be anticipated.
Although large model companies experience significant share price volatility, the sustained high growth in revenue remains a clear trend. Fundamentals for major internet companies have largely shown signs of a turning point, with the impact of food delivery subsidies easing and cloud service growth maintaining a rapid pace. However, recent positioning dynamics and overseas macroeconomic changes continue to bring short-term disruptions. Nevertheless, when valuations fall back into undervalued territory, these companies are expected to regain investment appeal.
Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before use. Any actions taken based on this information are at your own risk.
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