<Daily Summary> HSI Ends at 26,487, Decreasing by 76 Points; HSTI Finishes at 5,683, Down 66 Points; POP MART Surges Over 9%; WANGUO GOLD GP, NANSHAN AL INTL, LUK FOOK HOLD, CHINA SOUTH AIR, and CHINA TAIPING Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 76 points (0.3%) to close at 26,487, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Major stocks like Xiaomi, Tencent, and Meituan saw declines, with Xiaomi dropping 2.7% and Tencent down 1.5%, while Ping An was the only heavyweight to gain, increasing by 0.9%.
Notable Movers: Pop Mart and China Life were among the top gainers, with Pop Mart rising 9.1% and China Life up 4.3%, while Wuxi Apptec and BYD Company faced significant losses, dropping 4.1% and 3.7%, respectively.
Short Selling Activity: The short selling ratios for several stocks were notable, with BYD Company having a ratio of 21.25% and Sunny Optical at 23.49%, indicating high investor skepticism towards these stocks.
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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.
