On February 5, Hong Kong’s three main stock indices experienced declines, reflecting a broader trend in the market. The Hang Seng Index dropped by 1.27%, while the Hang Seng TECH Index fell by 1.16%. The Hang Seng China Enterprises Index also registered a decrease of 0.97%. By midday, the trading landscape revealed a stark contrast: out of 2,154 stocks, 584 had risen, but 1,386 had fallen, with 1,186 remaining unchanged.
The technology and internet sectors were among the worst performers on the day. Major players saw significant dips, with Kuaishou-W down 3.21%, Tencent declining by 2.87%, and Alibaba-W slipping by 2.45%. Other notable declines included NetEase-S at 1.62%, JD.com-SW at 0.74%, and Meituan-W down by 0.43%.
Non-ferrous metal stocks were hit particularly hard, with Tianqi Lithium Industries dropping a staggering 12.77%. Minmetals Resources and Jiangxi Copper were also down significantly, recording declines of 9.15% and 8.28%, respectively. Other losses included Luoyang Molybdenum at 8.10%, Ganfeng Lithium at 7.77%, and the Aluminum Corporation of China retreating by 6.33%. Zijin Mining, Zijin Gold International, and China Hongqiao also saw considerable decreases.
The gold sector mirrored the downturn in other metal stocks, with China Silver Group falling by 7.46% and China Gold International dropping by 6.70%. Other notable declines in this sector included Zijin Mining losing 6.24%, Chifeng Gold down 5.78%, and Shandong Gold falling 5.31%.
Despite the widespread downturn in technology and metal sectors, catering stocks showed resilience. Yum China led the pack with a surge of 9.33%, followed by Dazhong Shares at 3.04% and Haidilao increasing by 2.87%. Other restaurants and food-related stocks, such as Meet Fresh Noodles and Special Sea International, also saw gains.
New consumption concept stocks were highly active, with Miniso jumping 5.25% and Giant Biogene climbing 4.36%. Other notable gains in this category included Weilong Delicious Foods and Mao Geping, each gaining around 3.37%.
Conversely, semiconductor stocks faced challenges, with Huahong Semiconductor falling 5.76%. Other semiconductor firms also saw red, including Gigadevice and Shanghai Fudan, with declines around 5% and 3.68%, respectively.
Apple-related stocks were similarly affected, with Foxconn Group plummeting 7.51% and GoerTek down 5.89%. Other related stocks, such as Lens Technology and FIT HON TENG, followed suit with losses between 4% and 5%.
In terms of individual stock performances, Innovent Biologics (01801.HK) struggled, seeing nearly a 4% decline after making a one-time provision for channel inventory, despite analysts noting that its fourth-quarter performance met expectations. On a more positive note, CTG Duty-Free (01880.HK) shares rose nearly 2% as the Hainan duty-free market showed strong signs of growth.
SMOORE INTERNATIONAL (06969.HK) shares surged nearly 5% amid expectations of industry consolidation following the removal of tax rebates. Haitian Flavor (03288.HK) also saw a significant uptick of over 5% ahead of a special dividend issuance.
ZTO EXPRESS-W (02057.HK) experienced a gain of over 2% as projected parcel volumes for 2025 indicated a 13.3% year-on-year growth. The company’s plan to issue $1.5 billion in bonds further fueled investor confidence.
Notably, Giant Biogene (02367.HK) surged over 4% after gaining approval for the world’s first injectable recombinant collagen and sodium hyaluronate compound solution. Similarly, United Lab (03933.HK) rose over 4% after receiving tacit clinical trial approval for its self-developed innovative drug.
MNSO (09896.HK) shares also jumped over 5% after partnering with CCTV’s Spring Festival Gala, signaling a significant move in its consumption strategy. In contrast, DRINDA (02865.HK) retraced over 10% due to insights on the nascent stage of space-based solar power technology.
As the market closed for the day, these varied performances illustrated the complex and rapidly evolving dynamics of the Hong Kong stock market amidst ongoing economic challenges.
