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Market Commentary: HK Stocks Turn Weaker Ahead of Long Holiday; Geely and Chery Rebound Against Trend
Recommend 5 Positive 4 Negative 5 |
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US President Donald Trump said in a televised speech this morning that extremely severe strikes would be launched against Iran in the next two to three weeks. Brent oil futures for June delivery surged 7% to USD108.27 per barrel, while Hong Kong stocks declined. The market had previously expected a swift ceasefire between the US and Iran. Overnight, the DJIA and Nasdaq rose 0.5% and 1.2%, respectively, but optimism faded after Trump's remarks. At the time of writing, the US 2-year Treasury yield climbed to 3.852%, the 10-year Treasury yield rose to 4.378%, and the US Dollar Index advanced to 100.14. DJIA futures last fell 445 points or 0.95%, while Nasdaq futures dropped 363 points or 1.5%. The Shanghai Composite Index closed down 29 points or 0.74% at 3,919. The Shenzhen Component Index fell 1.6%, and the ChiNext Index declined 2.3%. Total turnover on the Shanghai and Shenzhen exchanges amounted to RMB1.84 trillion. Hong Kong equities moved lower. The HSI opened down 39 points and extended losses to as much as 392 points in the afternoon to a trough of 24,901, before narrowing declines late in the session. The HSI closed down 177 points or 0.7% at 25,116. The HSCEI fell 47 points or 0.56% to 8,456, while the HSTECH dropped 77 points or 1.6% to 4,679. Total market turnover for the day was HKD243.628 billion. Southbound trading turnover totaled HKD115.155 billion, with net inflow of HKD19.828 billion today (vs net outflow of HKD12.694 billion in the previous trading day). Hong Kong stocks will be closed tomorrow (3rd) for Good Friday. With only four trading days this week, the HSI rose 164 points or 0.7% for the week, the HSCEI gained 3 points or 0.04%, while the HSTECH fell 98 points or 2.1%. Southbound funds recorded net inflow of HKD5.371 billion for the week. The market will also be closed next Mon (6th) and Tue (7th) for holidays, and will resume trading next Wed (8th). [Concerns Over US-Iran Conflict Weigh on HK Stocks] Oil stocks advanced. PETROCHINA (00857.HK) and CNOOC (00883.HK) rose 2.1% and 0.2%, respectively. Coal stocks YANKUANG ENERGY (01171.HK) and CHINA COAL (01898.HK) gained 3.1% and 3.7%. Gold miners ZIJIN MINING (02899.HK), ZIJIN GOLD INTERNATIONAL (02259.HK), LINGBAO GOLD (03330.HK) and CHINA GOLD INTERNATIONAL (02099.HK) fell 3% to 4.3%. Resource stocks JIANGXI COPPER (00358.HK), CMOC (03993.HK) and MMG (01208.HK) dropped 2.8% to 3.4%. Airline stocks CHINA SOUTHERN AIRLINES (01055.HK), CHINA EASTERN AIRLINES (00670.HK) and AIR CHINA (00753.HK) declined 3.8% to 4.9%. AI-related stocks slid, with ZHIPU (02513.HK) and MINIMAX (00100.HK) retreating 14.9% and 10.4%, respectively. Cloud service providers KINGSOFT CLOUD (03896.HK) and GDS HOLDINGS (09698.HK) fell 3.8% and 3.7%. [1,200 Stocks Fall; Geely Rebounds Against Trend] Market breadth weakened, with the ratio of advancers to decliners at 18 to 31 among main board stocks. A total of 1,288 stocks declined (down 2.7%). Among HSI constituents, 38 stocks rose while 46 fell, with an advancers-to-decliners ratio of 42 to 51. Auto stocks were mixed. BYD (01211.HK) slipped 0.8% to HKD103.9, while XIAOMI (01810.HK) dropped 3.6%. CHERY (09973.HK) reported a 15% YoY increase in total sales in March, with its shares surging 15.3%. GREAT WALL MOTOR (02333.HK) posted 8% YoY sales growth in March, with shares rising 7.3%. GEELY (00175.HK) jumped 8.4% to HKD23.82 on turnover of HKD4.37 billion, making it the best-performing blue chip. M Stanley said in a recent report that GEELY management attended its China investor conference and reiterated its 2026 overseas sales target of 640,000 units, of which about 300,000 units are fuel vehicles. The company completed 180,000 units in 1Q26, indicating solid progress. Management said overseas capacity expansion would prioritize utilization of existing plants to avoid large-scale new investments. The company also targets a reduction in average vehicle cost of about RMB7,000 to RMB8,000 to offset rising memory and raw material prices. In 1Q26, pricing discipline remained solid, with significant improvement in per-vehicle profitability. Profit per vehicle in overseas markets may reach RMB13,000 to RMB15,000, about three times that of the domestic market. M Stanley maintained an Overweight rating and a TP of HKD25 on GEELY. (wl/u) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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