HSI1 25,311.21 -18.52 216.69B
HSCEI1 8,450.10 -12.54 66.58B
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HSI Loses 182 pts at Midday as BANK OF CHINA, CCB Set New Highs; Rate Hike Expectations Hammer Property Developers, Gold Miners
2026-08-31 12:37:55
This morning (31st), the HSI opened down 164 pts and closed midday at 25,402, down 182 pts or 0.71%, with half-day turnover totaling HKD138.145 billion. The HSCEI stood at 8,465, down 25 pts or 0.3%, while the HSTECH stood at 4,557, down 47 pts or 1.03%.

Among dotcoms, MEITUAN-W (03690.HK) was upgraded by JPMorgan to Overweight after its results, with its share price adding 1.16% by midday. BABA-W (09988.HK) and XIAOMI-W (01810.HK) lost less than 1%, while BIDU-SW (09888.HK) and TENCENT (00700.HK) dropped more than 1.41%.

Chinese banks have been releasing results successively. JPMorgan said 2Q results of major state-owned Chinese banks beat market expectations, and upgraded PSBC (01658.HK) to Overweight. The stock spiked 7.37% by midday. BANK OF CHINA (03988.HK) and CCB (00939.HK) were also JPMorgan's top picks, with both stocks setting record highs after results, surging 5.29% and 3.34%, respectively. ICBC (01398.HK) added 1.41%, while ABC (01288.HK) rose 1.85%.

Rising rate hike expectations hammered property stocks. CHINA RES LAND (01109.HK) slumped 7.72% by midday, making it the worst-performing blue chip, after the company reported a 17.2% YoY decline in interim net profit to RMB9.84 billion. LONGFOR GROUP (00960.HK) and CHINA OVERSEAS (00688.HK) plunged more than 6%. Local property stocks also retreated, with HENDERSON LAND (00012.HK) nosediving 6.07%, SHK PPT (00016.HK) tumbling 4.18%, and HANG LUNG PPT (00101.HK) slipping 3.38%.

Growing odds of US rate hikes also led to a sharp plunge in gold prices. ZIJIN MINING (02899.HK) fell off 5.59%, LINGBAO GOLD (03330.HK) sagged 9.12%, and ZIJIN GOLD INTL (02259.HK) slid 7.32%. Gold jewelry stocks posted notable declines, with LAOPU GOLD (06181.HK) and CHOW TAI FOOK (01929.HK) stumbling 6.2% and 6.91%, respectively. Metal and mining stocks were broadly weak, as CMOC (03993.HK) plummeted 6.67%, while CHINAHONGQIAO (01378.HK) and CHALCO (02600.HK) lost more than 3%.

Among blue chips, BOC HONG KONG (02388.HK) rallied 3.04% after HSBC Global Investment Research raised its TP following results. BYD COMPANY (01211.HK) fell off 6.69% after results, while BYD ELECTRONIC (00285.HK) spiked 4.28% after Macquarie upgraded it to Outperform. SUNNY OPTICAL (02382.HK) climbed 5.82%, making it the best-performing blue chip during the half-day session.
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