Hong Kong Stocks Close Lower: Hang Seng Drops 2.38%, Tech and Lithium Stocks Hit Hard

Stock News11-21

Hong Kong stocks followed a volatile overnight session on Wall Street, with the Hang Seng Index and HSCEI both falling over 2%, while the Hang Seng Tech Index plunged more than 3%. At the close, the Hang Seng Index dropped 2.38% (615.55 points) to 25,220.02, with a turnover of HK$285.7 billion. The Hang Seng China Enterprises Index declined 2.45% to 8,919.78, and the Hang Seng Tech Index tumbled 3.21% to 5,395.49. For the week, the Hang Seng Index lost 5.09%, the HSCEI fell 5.09%, and the Hang Seng Tech Index slumped 7.18%.

Market analysts noted that the current phase involves a critical digestion of risks, with investors balancing growth versus value stocks and risk-on versus safe-haven assets, leading to heightened short-term volatility. Uncertainty around interest rate cuts continues to dominate U.S. market sentiment, requiring caution among investors.

**Blue-Chip Performance** Xiaomi Group-W (01810) bucked the downtrend, rising 1.01% to HK$38.08, contributing 10.85 points to the Hang Seng Index. The company announced a record single-day buyback of 13.5 million shares at an average price of HK$37.61, totaling over HK$507 million. Analysts highlighted Xiaomi's strong revenue and profit growth in the first three quarters of 2025, driven by its "Human x Car x Home" ecosystem strategy.

Among other blue chips, only four stocks advanced: Longfor Group (00960) gained 1.43% to HK$9.90, China Telecom (00728) rose 0.69% to HK$5.85, while Xinyi Solar (00968) and Link REIT (00823) fell 7.51% and 7.47%, respectively.

**Sector Highlights** 1. **Tech Stocks Under Pressure** Semiconductor and AI-related stocks declined sharply, with SMIC (00981) and Hua Hong Semiconductor (01347) both dropping over 6%. Alibaba-W (09988) slid 4.65%, and Tencent (00700) lost 1.77%. Mixed signals from the Fed and lingering concerns over AI valuation bubbles weighed on sentiment.

2. **Lithium Stocks Plunge** Ganfeng Lithium (01772) and Tianqi Lithium (09696) plummeted over 11% after the Guangzhou Futures Exchange imposed trading limits on lithium carbonate futures, triggering a 9% drop in the main contract.

3. **Cryptocurrency-Related Stocks Slump** Bitcoin and Ethereum ETFs, including CSOP Ethereum (03046) and CSOP Bitcoin (03042), fell over 8% as crypto markets extended losses. Bitcoin erased its year-to-date gains, with analysts warning of a potential "crypto winter."

4. **Macau Gaming Stocks Decline** Sands China (01928), MGM China (02282), and Wynn Macau (01128) dropped around 6% as Macau projected 2026 gaming revenue at MOP236 billion, reflecting cautious optimism amid economic uncertainties.

**Notable Movers** - Success Universe (00487) crashed 48.25% after announcing the termination of its casino management agreement. - Link REIT (00823) extended losses, down 7.47%, as analysts cut DPU forecasts following weaker-than-expected earnings.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment