Hong Kong stocks declined over 300 points during morning trading, falling below the 25,000 level after opening 13 points higher at 25,022 points. The market reversed downward as pharmaceutical stocks and metal stocks faced selling pressure. US stocks fell overnight with the Nasdaq declining over 1%, while the Golden Dragon Index reflecting Chinese concept stocks rose 1.79%.
Hang Seng Index Opens Higher Then Falls Below 25,000 Level
The Hang Seng Index opened 13 points higher at 25,022 points and initially rose as much as 157 points to reach a high of 25,166 points. The index then reversed course and fell as much as 351 points to a low of 24,657 points. As of 10:30 AM, the Hang Seng Index fell 337 points or 1.35% to 24,670 points. The Hang Seng China Enterprises Index dropped 147 points or 1.77% to 8,170 points. The Hang Seng Tech Index declined 148 points or 3.06% to 4,686 points.
Hong Kong Exchanges and Clearing (00388) fell 0.4% to HK$394.6. AIA (01299) dropped 0.9% to HK$75.45. Contemporary Amperex Technology (03750) declined 1.4% to HK$612.5. HSBC (00005) rose 0.4% to HK$157.5.
Technology Stocks Face Broad Selling Pressure
Major technology stocks declined broadly. Alibaba (09988) fell 2% to HK$114.6. Tencent (00700) dropped 2.5% to HK$472. Meituan (03690) declined 3.7% to HK$83.95. Baidu (09888) fell 2.3% to HK$107.8. Xiaomi (01810) rose 0.5% to HK$27.64. JD.com (09618) gained 0.2% to HK$117. BYD Electronic (00285) rose 6.1% to HK$24.88, becoming the best-performing blue chip.
Chip stocks declined. SMIC (00981) fell 2.8% to HK$73.1. Hua Hong Semiconductor (01347) dropped 2.2% to HK$153.9. ASM Pacific Technology (00522) declined 4.9% to HK$168.8.
Artificial intelligence (AI) stocks faced heavy selling pressure. Zhipu (02513) plunged 13.8% to HK$1,335. MiniMax (00100) dropped 7.4% to HK$237.
Pharmaceutical Stocks Lead Market Decline
Pharmaceutical stocks faced selling pressure. Sino Biopharmaceutical (01177) plunged 5.3% to HK$4.98. WuXi AppTec (02359) fell 5.2% to HK$156.6, becoming one of the two weakest-performing blue chips. WuXi Biologics (02269) dropped 4.5% to HK$37.54. WuXi XDC (02268) declined 6.4% to HK$55.5. Hansoh Pharmaceutical (03692) fell 3.4% to HK$32.04. Pharmaron (03759) dropped 4.7% to HK$23.78.
Gold and Metal Stocks Drop as Gold Price Falls Below $4,000
International gold prices fell below the $4,000 level, pressuring gold and metal stocks. Zijin Mining (02899) plunged 3.7% to HK$29.72. Zhaojin Mining (01818) dropped 5.6% to HK$17.58. Chow Tai Fook Jewellery (06181) fell 3.9% to HK$359. China Molybdenum (03993) declined 3.7% to HK$15.69. Zijin Gold International (02259) plunged 6.6% to HK$96.65.
FAQ
What caused Hong Kong stocks to fall over 300 points during morning trading?
Hong Kong stocks fell over 300 points as pharmaceutical stocks and metal stocks faced selling pressure. The Hang Seng Index opened 13 points higher at 25,022 points but reversed downward to fall as much as 351 points to a low of 24,657 points.
How did pharmaceutical stocks perform in morning trading?
Pharmaceutical stocks led the market decline. WuXi AppTec fell 5.2% to HK$156.6, Sino Biopharmaceutical dropped 5.3% to HK$4.98, WuXi XDC declined 6.4% to HK$55.5, WuXi Biologics fell 4.5% to HK$37.54, Pharmaron dropped 4.7% to HK$23.78, and Hansoh Pharmaceutical declined 3.4% to HK$32.04.
Why did gold and metal stocks decline?
Gold and metal stocks declined as international gold prices fell below the $4,000 level. Zijin Mining plunged 3.7% to HK$29.72, Zijin Gold International dropped 6.6% to HK$96.65, Zhaojin Mining fell 5.6% to HK$17.58, Chow Tai Fook Jewellery declined 3.9% to HK$359, and China Molybdenum fell 3.7% to HK$15.69.
