U.S. President Donald Trump announced plans to notify countries of reciprocal tariff rates. The HKD hit the weak-side convertibility undertaking again, prompting the Hong Kong Monetary Authority (HKMA) to buy the HKD in an amount of over HKD29.6 billion.

Hong Kong stocks opened lower, with the HSI down 169 points or 0.7% at 23,900. The index fell as much as 379 points to bottom at 23,690 before recovering to a high of 23,932. It closed the morning session down 148 points or 0.6% at 23,921. The HSCEI sank 36 points or 0.4% to 8,611, and the HSTECH dropped 24 points or 0.5% to 5,209. Midday turnover reached HKD157.689 billion.

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BABA-W (09988.HK)  -1.100 (-1.036%)    Short selling $1.26B; Ratio 11.309%   proposed to issue HKD12 billion in zero-coupon convertible bonds, exchangeable for ALI HEALTH (00241.HK)  -0.300 (-6.637%)    Short selling $467.26M; Ratio 21.575%   shares at an initial price of HKD6.23 per share. BABA-W dipped 0.6% to HKD105.6, while ALI HEALTH slid 6.4% to HKD4.23 at midday.

For other techs, TENCENT (00700.HK)  -4.200 (-0.838%)    Short selling $256.89M; Ratio 3.528%   , SMIC (00981.HK)  +0.700 (+1.617%)    Short selling $109.76M; Ratio 2.036%   , JD-SW (09618.HK)  -1.100 (-0.878%)    Short selling $228.58M; Ratio 10.465%   , MEITUAN-W (03690.HK)  -2.000 (-1.629%)    Short selling $724.97M; Ratio 9.654%   , and NEW ORIENTAL-S (09901.HK)  -0.200 (-0.493%)    Short selling $21.45M; Ratio 21.924%   faded 0.3-1%. KUAISHOU-W (01024.HK)  +0.800 (+1.309%)    Short selling $471.19M; Ratio 20.463%   , BIDU-SW (09888.HK)  +1.250 (+1.477%)    Short selling $184.54M; Ratio 26.561%   , and NTES-S (09999.HK)  +1.200 (+0.575%)    Short selling $138.56M; Ratio 16.933%   added 0.5-0.8%.

Xiaomi’s YU7 configuration aroused consumer attention, but its stock XIAOMI-W (01810.HK)  -0.600 (-1.033%)    Short selling $709.06M; Ratio 9.357%   lost 1.2% to HKD57.4. XPENG-W (09868.HK)  -4.850 (-6.558%)    Short selling $1.50B; Ratio 35.145%   G7, priced from RMB195,800, way below pre-sale expectations, saw its stock plunge 5.5% to HKD69.9. Other auto makers were softer, with BYD COMPANY (01211.HK)  -1.500 (-1.220%)    Short selling $1.16B; Ratio 47.087%   down 0.4% at HKD122.5, while battery maker CATL (03750.HK)  +13.400 (+3.900%)    Short selling $393.90M; Ratio 19.560%   rallied 3.5% to HKD355.6.

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As to financials, HSBC HOLDINGS (00005.HK)  -0.050 (-0.053%)    Short selling $188.06M; Ratio 24.194%   and HKEX (00388.HK)  -3.400 (-0.815%)    Short selling $242.63M; Ratio 11.854%   sagged 0.1% and 0.6%, respectively, while AIA (01299.HK)  -3.200 (-4.423%)    Short selling $735.05M; Ratio 2.407%   dived 4.4% to HKD69.2.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-04 16:25.)