Key Takeaways:
- HSI closes at 25,328, down 271 points or 1.06%
- CATL jumps 6.38% to HKD700, best-performing blue chip
Back
HSI drops 271 points as tech stocks lead broad selloff
The Hang Seng Index fell 271 points to 25,328 on Wednesday, dragged by tech stocks after Xiaomi's post-earnings slump triggered broker target-price cuts.
Xiaomi (1810.HK) closed at HKD28.4, down 4.57%, after multiple brokers lowered their target prices following its quarterly results, according to AASTOCKS data. Short selling in the stock reached HKD1.29 billion, representing 28.9% of turnover.
The selloff spread across the sector. Alibaba (9988.HK) fell 2.59%, Tencent (0700.HK) dropped 1.05%, JD.com (9618.HK) lost 1.94%, Meituan (3690.HK) declined 1.4% and Kuaishou (1024.HK) slid 1.14%. CSPC Pharmaceutical (1093.HK) was the worst-performing blue chip, tumbling 5.38% after reporting a 40% plunge in first-quarter earnings year-over-year.
The decline came despite a positive overnight session on Wall Street, where the S&P 500 and Nasdaq both closed at record highs. The Dow Jones Industrial Average, however, declined. In Asia, South Korea's KOSPI hit another record high, with SK Hynix surging more than 9% in Seoul. Asia-Pacific markets traded mixed as investors weighed Iran tensions and ceasefire talks.
Traders pointed to three catalysts for the HSI's reversal: Xiaomi's earnings disappointment triggering profit-taking across tech, CSPC Pharmaceutical's 40% earnings plunge weighing on healthcare names, and a rotation out of growth stocks after the S&P 500 and Nasdaq hit fresh records overnight.
CATL, Lenovo buck the trend
Contemporary Amperex Technology (3750.HK) rose 6.38% to HKD700, making it the best-performing blue chip on the HSI. Lenovo Group (992.HK) gained 4.45% to HKD19, hitting a record closing high. NetEase (9999.HK) added 3.22% to HKD195.4 after mainland authorities approved 154 domestic games in May, including its title "Gui Ying Cang Feng."
Three IPOs surge on debut
Three companies made their trading debut on Wednesday with substantial gains. SDMC (901.HK) closed at HKD61.2, up 86.6% from its listing price of HKD32.8, yielding a book gain of HKD2,840 per board lot. Viewtrix Technology (3310.HK) rose 91.7% to HKD39.9 from its IPO price of HKD20.81, generating HKD3,818 per lot. DeepZero (2723.HK) surged 265.8% to HKD203 from its listing price of HKD55.5, with each board lot producing a book gain of HKD14,750.
Among other movers, Pony (2026.HK) raised its full-year earnings guidance and closed up 5.24%. Miniso (9896.HK) fell 6.16% after results. Minimax (100.HK) surged more than 10% after UBS expressed optimism on faster monetization driven by model upgrades.
Full-day turnover reached HKD320.8 billion. The Hang Seng China Enterprises Index fell 113 points to 8,463, while the Hang Seng Tech Index dropped 39 points to 4,907. The strong IPO debuts suggest risk appetite remains elevated despite the broader index weakness, though earnings disappointments from Xiaomi and CSPC could pressure sector peers in the near term.
This article is for informational purposes only and does not constitute investment advice.
[1] H Shrs HSI Closes Down 271 pts with Turnover 320B; XIAOMI-W (01810.HK) Slumps Over 4% Post-results[2] Japan, South Korea stocks hit fresh records as markets weigh Iran tensions and ceasefire talks[3] HSI Closes Down 271 pts with Turnover 320B; XIAOMI-W (01810.HK) Slumps Over 4% Post-results - AASTOCKS.com
