Market Performance: The HSI fell by 1.2% to close at 26,149, with significant declines in the HSCEI and HSTECH, reflecting a total market turnover of $268.275 billion.

CITIC Securities Decline: CITIC SEC's A-shares dropped 3.3% due to massive sell-offs, while its H-shares also fell by 3.5%, indicating pressure on the brokerage sector.

Tech Sector Struggles: Major tech stocks like BIDU-SW and TENCENT experienced declines, with BIDU-SW down 3.3% despite positive IPO news for Kunlunxin, while other tech giants also saw losses of over 2%.

Mixed Results in Other Sectors: While some stocks like XD INC and INSILICO surged, others in the chip and smartphone parts sectors, such as LENOVO GROUP and SUNNY OPTICAL, faced significant declines, highlighting volatility in the market.

Market Performance: The Hang Seng Index (HSI) fell by 322 points (1.2%) to 26,136, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.

Active Heavyweights: Major stocks like Meituan, Xiaomi, Tencent, Alibaba, and Ping An saw significant drops in their share prices, with Meituan leading the decline at -2.8%.

Notable Declines: Lenovo Group, Zhongsheng Holdings, Sands China, Baidu, Tingyi, and Sunny Optical all reported substantial losses, with Lenovo Group down 5.4%.

Gainers in the Market: CK Asset, CKI Holdings, and CLP Holdings recorded slight gains, with CK Asset hitting a new high, while Shineway Pharm and BOC Aviation also saw increases in their stock prices.

Spin-off Announcement: SUNNY OPTICAL is considering a spin-off of its vehicle-related optical business, which includes vehicle lenses, modules, LiDAR, and head-up displays, for a separate listing.

Future Structure: Post spin-off, the new entity will remain a consolidated subsidiary of SUNNY OPTICAL, although the future shareholding ratio has not been disclosed.

Revenue Projections: Citi estimates that SUNNY OPTICAL's auto business could generate RMB7.4 billion in revenue by 2025, representing 22% of the company's total revenue.

Analyst Rating: BofA Securities maintains a Buy rating on SUNNY OPTICAL, with a target price of $104, citing potential positive catalysts from the spin-off and expected growth in the auto business.

Spin-off Consideration: SUNNY OPTICAL is considering a spin-off of its vehicle-related optical businesses, which include camera lenses and LiDAR components, for a separate listing on the Hong Kong main board.

Growth Potential: The vehicle business is projected to experience structural double-digit growth due to the increasing adoption of Advanced Driver Assistance Systems (ADAS) and specification upgrades, which could positively impact SUNNY OPTICAL's stock valuation.