Hong Kong Market Open | Hang Seng Index Slides 0.94% as Tech Stocks Falter, Weichai Power Jumps Over 10%

Stock News09:50

Hong Kong stocks opened lower on September 17, with the Hang Seng Index dropping 0.94% to 24,480.57 points. The Hang Seng Tech Index slipped 1.03% to 4,281.03 points, while the Hang Seng China Enterprises Index fell 0.97% to 8,127.00 points. The Hang Seng China-Affiliated Corporations Index also declined 0.96% to 4,039.25 points.

Among Hang Seng Index constituents, Weichai Power Co.,Ltd. (02338) surged 10.01% to lead gains, followed by Shenzhou International (02313) which rose 1.97%. On the downside, Xinyi Solar (00968) dropped 2.47%, marking the steepest decline. Within the tech index, Zhipu (02513) advanced 2.78%, MINIMAX-W (00100) gained 1.68%, and Tianshu Zhixin (09903) climbed 1.19%. Meanwhile, Trip.com Group-S (09961) fell 1.92% and Ali Health (00241) lost 1.89%.

Tech stocks broadly weakened, with Tencent Holdings (00700) down 1.66% and Alibaba-W (09988) off 1.13%. Gold stocks also traded lower, as Zijin Mining (02899) slipped 1.51% and Shandong Gold (01787) dropped 2.44%. Oil shares followed suit, with CNOOC (00883) declining 1.56%, Sinopec (00386) falling 1.41%, and PetroChina (00857) down 1.02%. On a brighter note, optical communication concept stocks edged higher, with YOFC (06869) up 1.13% and ZTE (00763) adding 0.35%. Memory chip concept stocks opened flat, as GigaDevice (03986) and Montage Technology (06809) held steady.

Where to begin

On the macro front, the Federal Reserve announced a 25-basis-point hike to its federal funds rate target range, bringing it to 3.75%-4%, marking the first increase since July 2023. The decision passed unanimously with all 12 FOMC members voting in favor. Overnight, U.S. stocks closed lower across the board, with the Dow Jones falling 1.21%, the S&P 500 down 0.45%, and the Nasdaq slipping 0.01%. The U.S. dollar index strengthened above 100, while the 10-year Treasury yield climbed above 5%.

In individual stock news, Goldman Sachs reiterated its "Buy" rating on Weichai Power, citing strong prospects for its AI data center power generation business. Additionally, Zhipu stated during an investor conference call on September 16 that its company-wide ARR has reached $1.8 billion, and it has raised its year-end ARR guidance from $2.4 billion to $3 billion.

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