To The Moon

Hong Kong's major stock indices all traded lower by midday on September 17. The Hang Seng Index fell 0.73% to 24,533.46 points, the Hang Seng Tech Index declined 0.76%, and the Hang Seng China Enterprises Index slipped 0.58%.

In terms of sectors, internet and tech stocks saw more decliners than gainers, with Bilibili Inc (NASDAQ: BILI) and Meituan (HKG: 3690) both dropping over 2%, while Lenovo Group Ltd (HKG: 0992) rose more than 1%. Innovative drug concept stocks were active, with WuXi XDC (HKG: 2268) surging over 3%. Gold stocks tumbled, as Shandong Gold Mining Co Ltd (HKG: 1787) plunged more than 7%. Oil stocks weakened, with PetroChina Co Ltd (HKG: 0857) falling over 2%.

The active performance of innovative drug concept stocks was highlighted by WuXi XDC climbing over 3%. According to a research report from Guosen Securities, A-share pharmaceutical companies generated operating revenue of 1,194.21 billion yuan in the first half of 2026, up 2.6% year-on-year, while net profit attributable to shareholders reached 104.96 billion yuan, a 10.8% increase. Profit growth notably outpaced revenue expansion. Overall, the pharmaceutical sector's fundamentals continued to improve in the first half of 2026, with the earnings recovery trend further confirmed. High-growth areas such as innovative drugs and CXO stood out, and the brokerage continues to recommend innovative drug plays and their supply chains.

Gold stocks suffered significant losses, led by Shandong Gold dropping over 7%. The Federal Reserve raised interest rates by 25 basis points to a range of 3.75%-4.00%. The dot plot indicated that 16 of 18 officials expect another rate hike this year. Additionally, the Fed upgraded its growth forecast and lowered its unemployment projection, with the policy rate path shifting upward in tandem.

Oil stocks also declined, with PetroChina down over 2%. EIA data showed U.S. crude inventories fell by 640,000 barrels last week, compared with a prior decline of 391,000 barrels and a median estimate of a 1.5-million-barrel drop. Meanwhile, the Fed unanimously approved a 25-basis-point hike in the federal funds rate target range to 3.75%-4.00%, marking the first increase since July 2023. In addition, Saudi Aramco is working to bypass a damaged section of its pipeline, planning to restore roughly half of its capacity within days. These multiple bearish factors weighed on international oil prices, with WTI crude futures falling over 1% intraday on Thursday and Brent crude slipping below $105 per barrel.