Midday Update: HSI Ends at 26,552, Down 11 Points; HSTI at 5,711, Down 38 Points; POP MART Rises Over 8%; LUK FOOK HOLD, NANSHAN AL INTL, CHINA EAST AIR, CTG DUTY-FREE, and CHINA TAIPING Reach New Highs
Market Performance: The Hang Seng Index (HSI) closed down 11 points at 26,552, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable stocks included Xiaomi and Tencent, both down approximately 1.5%, while Ping An saw a slight increase of 1.1%.
Top Gainers and Losers: Pop Mart surged by 8.5%, while Wuxi AppTec fell by 4.6%. Other significant movers included China Overseas and China Res Land, both showing positive gains.
Short Selling Activity: High short selling ratios were observed across various stocks, with Xiaomi and Meituan leading in short selling amounts, indicating market caution.
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HSI Drops 498 Points at Noon; Commodity Shares Tumble; CSPC Pharma Falls Over 12%
Market Reaction to Fed Chair Nominee: The DXY rose following President Trump's announcement of the Fed Chair nominee, while the Hong Kong stock market experienced significant declines, with the HSI dropping 498 points or 1.8% by the morning session's close.
Gold and Mining Stocks Performance: Gold prices fell over 3%, leading to substantial losses in mining stocks such as SD GOLD and ZIJIN GOLD, which plunged 12.9% and 10% respectively, alongside other mining companies experiencing similar declines.
Pharmaceutical Sector Developments: CSPC PHARMA's stock plummeted 12.5% despite a partnership with AstraZeneca for drug development, which included an upfront payment exceeding HKD9.3 billion.
Corporate News and Market Rumors: The Panama Supreme Court ruled contracts for two local ports unconstitutional, negatively impacting CKH HOLDINGS, while rumors of a potential ownership change at NEW WORLD DEV led to a 3.7% increase in its stock price.
Citi Increases Target Price for NEW WORLD DEV to HKD9.6, Maintains Sell Rating Due to Possible Corporate Actions
Company Actions and Ratings: New World Development (NWD) is focused on refinancing and asset disposal, with Citi maintaining a Sell rating while raising the target price from HKD4.8 to HKD9.6, highlighting potential equity dilution risks from corporate actions.
Market Speculation: There are rumors regarding Blackstone Inc.'s potential takeover of NWD, which has generated market excitement about possible corporate actions that could impact share control and introduce downside risks.
