30th December 2024 – (Hong Kong) The Hong Kong stock market witnessed a decline on Monday, with the benchmark Hang Seng Index falling by 0.24 percent to close at 20,041.42 points.
The Hang Seng China Enterprises Index also dipped by 0.34 percent, finishing at 7,280.48 points, while the Hang Seng Tech Index saw a decrease of 0.84 percent, settling at 4,500.6 points.
In the technology sector, individual stock movements were notable, with Meituan dropping by 1.23%, NetEase by 1.2%, JD.com by 0.88%, and Alibaba by 0.43%. Tencent, on the other hand, gained 0.38%, while Xiaomi Group rose by 0.88%.
Within the financial sector, HSBC Holdings saw a 0.6% increase, while Hong Kong Exchanges and Clearing dipped by 0.74%, and AIA Group remained unchanged.
Automobile stocks faced selling pressure, with XPeng Motors dropping nearly 6%, NIO declining by 3.7%, and Li Auto falling by 2.29%. Geely Auto (00175) and BYD Company experienced decreases of 2.13% and 1.97% respectively.
Contrary to the market trend, semiconductor stocks surged, with Semiconductor Manufacturing International Corporation (SMIC) rising by 6.36%, marking a seven-day consecutive increase and standing out as a top-performing blue-chip.
Meanwhile, Yum China Holdings opened lower by 14.9% and closed the day with a 31.59% decline to 62.45 Hong Kong dollars, hitting a 52-week low. The company’s lock-up period expired, leading Chairman Zhou Jian and several shareholders to terminate their agreement not to reduce holdings for a year.
The Hong Kong stock market has shown a commendable performance this year, with the Hang Seng Index climbing by around 3,000 points since the beginning of the year. Trading volumes also reached record highs. Considering the generally satisfactory performance of Chinese stocks in the first nine months of the year, stability is expected to be maintained in 2025, supporting overall market performance. It is anticipated that the Hang Seng Index will continue to fluctuate around the 20,000-point mark until the end of the year. Looking ahead to next year, with policy trends in the mainland, an optimistic outlook prevails, with an initial target for the index set at 23,000 points, with a potential breakthrough to test 25,000 points.
Analysts suggest that with continued interest in related concepts from institutional investors, stocks related to artificial intelligence (AI) still hold speculative potential. However, attention should also be paid to their operational performance. Xiaomi Corporation, known for its excellent corporate governance and diversified business ventures, is seen as a strong contender, with its stock price expected to remain robust. Regarding SMIC, the outlook is positive for a further breakthrough in stock price, with the trading range potentially moving up to 29 to 33 Hong Kong dollars. While the company posted a strong performance in the third quarter, the impact of ongoing trade tensions between the U.S. and China on its fourth-quarter results remains a point of concern, leading to expectations of continued price volatility.
