Zhitong Finance APP reports that Hong Kong equities had a decline today, with the Hang Seng Index going below 26,000 once more and plunging more than 1%. The Hang Seng Tech Index ended the day flat at 5,662.55, the Hang Seng China Enterprises Index down 1.25% to 9,083.53, and the Hang Seng Index declined 1.23%, or 319.72 points, to 25,965.36, with a total turnover of HK$206.23 billion.
BOC International advises investors to maintain composure and avoid becoming too alarmed by the recent dramatic swings in the stock market. In a bull market, adjustments are common, and short-term volatility will not stop Hong Kong stocks from rising. The bank anticipates that the momentum of the capital market’s development and recovery will not shift by 2026.
Performance of blue-chip stocks
Leading the blue chips was Baidu Group-SW (09888). With a turnover of HK$3.041 billion, it increased 3.45% to HK$125.8 at the close, adding 8.38 points to the Hang Seng Index. In an announcement, Baidu Group said that it was aware of media rumors on December 5th about its intention to spin out Kunlun Core (Beijing) Technology Co., Ltd., a non-wholly owned subsidiary, for an independent listing. The firm now makes it clear that it is actively assessing the proposed listing and spin-off. The firm does not promise that the planned spin-off and listing will occur; if it does, it will be subject to applicable regulatory approval procedures.
SMIC (00981) increased 2.94% to HK$71.8, contributing 14.49 points to the Hang Seng Index; Ping An Insurance (02318) increased 2.15% to HK$61.75, contributing 13.68 points; China Construction Bank (00939) decreased 4.01% to HK$7.66, causing the Hang Seng Index by 51.63 points; and China Merchants Bank (03968) decreased 3.54% to HK$51.8.
Popular industries
Major IT companies saw a widespread dip in the market, with Tencent down 0.82% and Alibaba down more than 1%. Chinese securities firms’ stocks rose against the trend after the head of the China Securities Regulatory Commission (CSRC) recommended suitably “loosening” rules on high-quality institutions. Stocks of optical communication concepts increased, with Huiju Technology rising more than 7%. Huahong Semiconductor had an increase of more than 4% in chip stocks. Some insurance stocks and lithium battery firms also did nicely. Pharmaceutical stocks opened higher but closed negative as a result of the announcement of the updated national medical insurance medication list. Gold equities have generally declined as the market expects this week’s Federal Reserve interest rate meeting. New consumer stocks, coal, and domestic bank stocks all declined.
1. In contrast to the market trend, shares of Chinese securities businesses increased. China Merchants Securities (06099) up 2.82% to HK$15.29 at the close, Huatai Securities (06886) increased 5.17% to HK$19.33, GF Securities (01776) increased 3.1% to HK$17.94, and CITIC Securities (06066) increased 2.99% to HK$12.76.
At the 8th Member Congress of the Securities Association of China, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), said that efforts to develop first-class investment banks and institutions should be hastened. The CSRC will moderately increase capital space and leverage constraints, further optimize risk control indicators, and suitably “loosen restrictions” on high-quality institutions. According to Guotai Haitong Securities, in light of the marginal easing of capital constraints, leading securities firms are anticipated to accelerate the development of proprietary trading, market making, derivatives, institutional business, and wealth management, strengthening the valuation center and raising the ROE center. According to BOC International, the securities sector’s present value is at a historically low level, and given the promising industry outlook, there is potential for the valuation center to rise.
2. Concept stocks for optical communication were in use. At the closing, Yangtze Optical Fibre and Cable (06869) increased 3.59% to HK$36.34, Huiju Technology (01729) increased 7.65% to HK$17.02, and Cambridge Technology (06166) increased 5.68% to HK$86.5.
The communications sector has started a boom cycle due to artificial intelligence’s quick growth. The ICT equipment and IDC sector is anticipated to continue to benefit from the increased capital expenditure of internet giants; the copper connection sector is anticipated to continue releasing production capacity, thereby realizing growth in net profit attributable to shareholders; increased global investment in AI computing power is anticipated to drive continued high growth in net profit attributable to shareholders in the optical communications sector; and the demand for hollow fiber, submarine cable, and DCI in optical fiber and cable is noteworthy.
3. The majority of lithium stocks increased. Ganfeng Lithium (01772) increased 6.95% to HK$51.25 at the closing, while CATL (03750) up 3.28% to HK$506.5 and Tianqi Lithium (09696) increased 3.16% to HK$48.28.
According to a study report published by Huayuan Securities, the downstream lithium battery industry will begin its off-season in December. The short-term supply-demand mismatch for lithium carbonate may lessen when combined with the anticipated restart of production at the Jianxiawo lithium mine, which might drive down lithium prices. In the upcoming year, the supply-demand balance of lithium carbonate will reverse as a result of lithium salts entering a destocking cycle due to the faster-than-expected growth in lithium battery demand. A demand-driven upward cycle in lithium pricing is anticipated, which might lead to a turning point in lithium businesses’ profits. In order to achieve simultaneous growth in both volume and profit, Huatai Securities is committed to increasing profitability throughout the whole chain of the lithium battery business.
4. Despite opening higher, pharmaceutical stocks ended the day weaker. Ascletis Pharma-B (01672) increased 4.98% to HK$14.33 at the close, WuXi AppTec Juno-B (02126) up 5.52% to HK$3.25, Rongchang Biotech (09995) decreased 10.3% to HK$79.25, and Innovent Biologics (01801) turned blue today, sliding 6.96% to HK$85.6.
The National Healthcare Security Administration published the 2025 Commercial Health Insurance Innovative Drug Catalog and the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog on December 7. The 2025 National Medical Insurance Drug Catalog had an overall success rate of 88%, a notable improvement from 76% in 2024, by successfully adding 114 medications, 50 of which are Class I novel pharmaceuticals. The Commercial Health Insurance Innovative Drug Catalog’s initial edition contained 19 medications. These 19 medications include CAR-T therapy medications for the treatment of cancer, medications for uncommon conditions including Gaucher disease and neuroblastoma, and medications for Alzheimer’s disease.
Well-known stocks with peculiar price fluctuations
1. Today saw the listing of two new stocks. Excellence Ruixin (02687) increased 87.26% to HK$126.4 at the close, while Naxin Micro (02676) decreased 4.31% to HK$111.
Higher education institutions can purchase digital teaching solutions from Excellence Technology. Established in 2008, the business introduced the “Wisdom Tree” brand in 2013. Frost & Sullivan reports that Excellence Technology has a 4.0% market share in China’s higher education digital teaching industry, placing it second based on revenue in 2024. According to the prospectus, Naxin Microelectronics uses a fabless business model, concentrating on chip design and research and development while contracting out wafer production to outside foundries and the majority of packaging and testing to outside packaging and testing service providers.
2. After listing, Re-Fire Energy (02570) is approaching the conclusion of its one-year lock-up term. It dropped 27.33% to HK$84.95 at the end of business.
After a year of listing, Re-Fire Technology Co., Ltd. (Re-Fire) began trading on December 8. A prior release states that the lock-up period for pre-IPO investors and current shareholders ends on December 5, 2025. According to data, 55 Re-Fire Technology stockholders had their shares freed from lock-up, totaling 54.2136 million shares.
3. At HK$37.7, Yin Nuo Pharmaceutical-B (02591) shares fell 14.32%
The list of stocks eligible for the Hong Kong Stock Connect has been modified in accordance with applicable laws as a result of the adjustment of component stocks in the Hang Seng Composite MidCap Index, according to notifications made by the Shanghai Stock Exchange and Shenzhen Stock Exchange. As of December 8, 2025, Yinno Pharmaceuticals is now a part of the Hong Kong Stock Connect. Furthermore, esupragglutide α (Yinno Light®), the company’s independently created ultra-long-acting GLP-1 receptor agonist, has been formally included to the 2025 National Medical Insurance Drug Catalog and will be introduced concurrently with the new catalog on January 1, 2026.
4. RoboSense (02498) did well, increasing 5.23% to HK$34.58 at
RoboSense stated that it has signed a new pre-installation mass manufacturing contract with FAW Toyota for a popular and best-selling model, with orders totaling close to one million units over a five-year period. Following RoboSense’s three-year exclusive deal for a specific pure electric car, this is another noteworthy relationship between RoboSense and FAW Toyota, utilizing RoboSense’s cutting-edge digital lidar technology to achieve a new agreement for another important model.
