Hong Kong Stock Market Close (09.22)

According to the Zhicheng Finance App, Hong Kong’s three major indices fluctuated underwater throughout the day, with intraday declines temporarily widening by more than 1%. At the close, the Hang Seng Index fell by 0.76%, or 200.96 points, to 26,344.14 points, with a total turnover of HKD 290.537 billion; the Hang Seng China Enterprises Index dropped by 1.07% to 9,370.73 points; and the Hang Seng Tech Index declined by 0.58% to 6,257.91 points.

Dongwu Securities believes that Hong Kong stocks remain in an upward trend amid fluctuations, with downside support intact. The firm noted that with the Fed’s rate cut decision now settled, further gains in Hong Kong stocks will depend more on industry momentum and marginal changes in fundamentals. Currently, increasing numbers of foreign investors are showing interest in Chinese assets, though capital inflows remain in the early stages. At present, Hong Kong stocks are still experiencing sector-specific trends, and it is recommended to adopt a bottom-up approach to identify relatively undervalued individual stocks.

Performance of blue-chip stocks

SMIC (00981) hit another record high. At the close, it rose by 5.16% to HKD 73.35, with a turnover of HKD 9.878 billion, contributing 25.48 points to the Hang Seng Index. Goldman Sachs recently raised its target price for SMIC’s H shares by 15% to HKD 73.1. This optimistic outlook is primarily driven by expectations for robust demand in China’s IC design sector and artificial intelligence trends, which are anticipated to strongly support SMIC’s production volume and average selling prices. The firm also revised upward its revenue and earnings per share forecasts for 2028-2029, noting that a projected 5%-7% quarter-on-quarter revenue growth in Q3 2025 could serve as a short-term catalyst for the stock.

Among other blue-chip stocks, Sunny Optical (02382) gained 6.74% to HKD 87.05, contributing 6.09 points to the Hang Seng Index; Wuxi Bio (02269) rose by 6.09% to HKD 40.08, contributing 13.25 points to the Hang Seng Index; Orient Overseas International (00316) fell by 5.24% to HKD 126.6, dragging down the Hang Seng Index by 1.39 points; Techtronic Industries (00669) dropped by 4.03% to HKD 100.1, weighing on the Hang Seng Index by 9.62 points.

In popular sectors,

In terms of market performance, large-cap technology stocks were mixed, with Baidu rising over 3%, Alibaba up by 0.06%, and Tencent down by 0.23%. Reports suggest that OpenAI may be in talks with Apple supply chain companies to develop hardware, while Apple reportedly requested an increase in iPhone 17 daily production, leading to a breakout in consumer electronics-related stocks today. Spot gold prices hit another all-time high, driving a collective rise in gold stocks. Optimized procurement strategies fueled gains in most pharmaceutical stocks. Chipmakers, steelmakers, and robotics-related stocks were active. On the other hand, shipping stocks led the declines, with COSCO Shipping Energy and SITC International both falling more than 5%. Education, coal, and automobile stocks also showed weak performances.

1. Consumer electronics stocks surged across the board. Foxlink (06088) soared by 17.83% to HKD 6.94; Lens Technology (06613) climbed by 12.63% to HKD 31.38; Cowell E&E (01415) jumped by 11.3% to HKD 40.98; Q Technology (01478) advanced by 10.15% to HKD 15.85; AAC Technologies (02018) rose by 9.85% to HKD 49.28.

Recently, OpenAI signed an agreement with Luxshare Precision Industry, a device assembler for Apple, to jointly develop a consumer-grade device. According to CLSA, supply chain sources indicate that OpenAI is also in discussions with Lens Technology and AAC Technologies regarding component supplies. Considering that the core members of OpenAI’s device team are former Apple employees, it is reasonable for the company to collaborate with firms within Apple’s supply chain. Such initiatives are expected to provide new growth momentum for existing Apple supply chain companies.

Additionally, reports suggest that following stronger-than-expected pre-orders for the standard version of the iPhone 17, Apple has requested Luxshare Precision Industry, one of its key contract manufacturers, to increase daily production of the standard iPhone 17 by approximately 40%. Apple also notified some non-electronic component suppliers to raise their daily supply volume by around 30%. Goldman Sachs stated that robust pre-order demand supports the bank’s expectation of an 8% year-over-year revenue growth for Apple’s iPhone segment in the fourth fiscal quarter.

2. Gold stocks collectively rose. By the close, Tongguan Gold (00340) increased by 7.8%, trading at HKD 2.35; Lingbao Gold (03330) gained 7.53%, closing at HKD 17.7; Shandong Gold (01787) rose by 7.23%, reaching HKD 38.26; and Zhaojin Mining (01818) climbed 6.35%, ending at HKD 29.8.

On September 22, spot gold continued to rise, reaching USD 3,719 per ounce during the session, setting another record high, with year-to-date gains already reaching 40%. Huatai Securities noted that the Federal Reserve cut interest rates by 25 basis points at its September FOMC meeting as expected, with the dot plot indicating an additional 50 basis points of rate cuts for the year, aligning with market expectations. The firm reiterated that gold holds long-term allocation value. In an era of global restructuring, trends such as de-dollarization, geopolitical risks, and the need for portfolio diversification are driving central banks and institutional investors worldwide to continuously increase their gold allocations. This structural shift in demand provides solid bottom support for gold prices.

3. Most pharmaceutical stocks performed positively. By the close, Wuxi XDC (02268) surged 8.31%, trading at HKD 76.25; Ascletis Pharma-B (01672) climbed 7.77%, reaching HKD 11.51; InnoCare Pharma (09969) rose 6.81%, closing at HKD 17.56; and Wuxi Bio (02269) gained 6.09%, ending at HKD 40.08.

The National Healthcare Security Administration released the eleventh batch of centralized drug procurement documents. During the formulation and revision of this procurement plan, the principles of ‘stabilizing clinical use, ensuring quality, preventing bid-rigging, and combating internal competition’ were fully adhered to. The document mentioned that this procurement optimized the selection of the price difference control ‘anchor point’, no longer simply choosing the lowest bid. Guotai Haitong Securities believes that the optimization of procurement rules reflects the administration’s active efforts to promote anti-internal competition in the pharmaceutical sector, with the domestic market expected to improve continuously. Meanwhile, Dongwu Securities notes that under the backdrop of interest rate cuts, the innovation industry chain is gaining momentum, with upstream life sciences and CXO sectors likely to benefit.

4. Steel stocks showed active performance. By the close, Maanshan Iron & Steel Co., Ltd. (00323) rose 4.44%, trading at HKD 2.59; Chongqing Iron & Steel Co., Ltd. (01053) gained 1.46%, closing at HKD 1.39; and Angang Steel (00347) climbed 0.92%, ending at HKD 2.19.

The Ministry of Industry and Information Technology and other departments issued the ‘Steel Industry Growth Stabilization Work Plan (2025-2026)’, which set an annual growth target for the steel industry’s value-added output at approximately 4% over the next two years. Among the proposals, precise regulation of production capacity and output, as well as tiered and categorized management of steel enterprises, were emphasized, with strict prohibition against adding new capacity. CICC pointed out that looking ahead to the second half of 2025, amid efforts to combat internal competition, production regulation is expected to be implemented. Coupled with inventory cycles currently at their bottom, a reversal driven by improving market expectations could lead to improved industry supply-demand dynamics. The steel industry is now on the left side of a major cyclical bottom reversal, with the cycle bottom gradually becoming clearer. A synchronized upward movement in the industry cycle is anticipated, with a bottom reversal potentially foreseeable.

Hot Movers

1. Cloudwise Technology (01037) was suspended during the session. Before the suspension, it surged 133.96%, trading at HKD 0.62.

On September 21, Yunzhihui Technology and Ubtech Robotics signed a global strategic cooperation agreement. The two parties will jointly promote the scaled application of humanoid robots in the field of intelligent manufacturing, injecting new momentum into the transformation and upgrading of global manufacturing. According to the company’s official WeChat account, Yunzhihui Technology, as an associated listed company invested by Hon Hai Foxconn Technology Group, has a strong background and resources in the manufacturing industry.

2. Shandong Hi-Speed Holdings (00412.HK) surged significantly, closing up 29.76% at HKD 4.36.

Shandong Hi-Speed Holdings issued a statement regarding the unusual movement in its share price and trading volume. After reasonable inquiry, the board confirmed that, apart from the matters disclosed in the announcement on highly concentrated equity released on September 18, no reasons were found that could have caused the abnormal fluctuations in share price and trading volume. Meanwhile, the board also stated that the group’s business operations remain normal, with no significant changes in operational or financial conditions.

3. Shanghai Dazhong Public Utilities (01635.HK) saw a large increase in trading volume, closing up 21.05% at HKD 3.45.

Shanghai Dazhong Public Utilities stated on an interactive platform that the company holds shares in Shenzhen Capital Group (SCG), which, along with its funds, owns shares in Unitree Robotics. It is reported that Unitree Robotics is expected to submit its listing application documents to the stock exchange in the fourth quarter of this year. Additionally, market attention is focused on Moore Threads’ upcoming listing hearing on the STAR Market. Data shows that Moore Threads was established in 2020, with Zhang Jianzhong, the actual controller, holding 44.07% of the company’s shares. After its establishment, Moore Threads received investments from multiple institutions, including SCG.

4. Confluence Technology (01729.HK) remained strong throughout the day, closing up 12.18% at HKD 17.96.

According to reports, OpenAI has reached a strategic cooperation agreement with Luxshare Precision Industry, a leading company in China’s ‘Apple supply chain.’ The two parties will jointly develop a revolutionary AI consumer device. Public data shows that in February 2022, Luxshare Precision Industry acquired Confluence Technology through its subsidiary, Hong Kong Luxshare Precision Limited. After the acquisition, Luxshare Precision Industry held 74.67% of Confluence Technology’s shares.

5. Loyal Resources (02245.HK) rose noticeably, closing up 6.6% at HKD 16.31.

According to reports, the Democratic Republic of the Congo’s Strategic Minerals Regulatory Authority announced on Sunday that the country would extend its ban on cobalt exports until October 15, lifting the ban on October 16 while implementing an annual export quota. Minsheng Securities believes that Loyal Resources’ large-scale wet-process nickel production capacity in Indonesia, combined with cost advantages, positions it well to benefit significantly from rising cobalt prices.