[Hong Kong Stock Market] All three major indices are down! Pharmaceuticals and gold mining stocks are undergoing a full adjustment.

On September 4, 2025, the major three indices in the Hong Kong market all showed weakness. In terms of closing prices, the Hang Seng Index was down 1.12%, the H-shares Index was down 1.25%, and the Hang Seng Tech Index was down 1.85%.

The automotive sales sector has seen a significant decline. Harmony Auto (03836.HK) plummeted 19.42% for three consecutive declines, Zhongsheng Holdings (00881.HK) dropped 8.85%, Yongda Auto (03669.HK) fell 5.88%, and Meidong Auto (01268.HK) decreased by 2%.

Semiconductor stocks fell for the fourth consecutive time. Horizon Robotics-W (09660.HK) dropped by 6.65%, Shanghai Fudan (01385.HK) dropped by 6.21%, SMIC (00981.HK) dropped by 6.67%, Jingmen Semiconductor (02878.HK) dropped by 7.29%, and Hua Hong Semiconductor (01347.HK) dropped by 5.42%.

Pharmaceutical stocks are broadly adjusting. Related stocks such as pharmaceutical outsourcing, biopharmaceuticals, innovative medicines, and aesthetic medicine have all significantly declined. Jiahe Biological-B (06998.HK) is down 11.05%, Gilead Sciences-B (01672.HK) is down 10.71%, Zai Lab (09688.HK) is down 11.99%, Kintor Pharmaceutical (03759.HK) is down 7.09%, WuXi AppTec (02359.HK) is down 7.31%, Celerion (06821.HK) is down 6.68%, and Tigermed (03347.HK) is down 5.76%.

Gold mining stocks and non-ferrous metal stocks also fell. Tongguan Gold (00340.HK) decreased by 8.93%, Lingbao Gold (03330.HK) decreased by 7.19%, China Gold International (02099.HK) decreased by 7.43%, Chifeng Jilong Gold (06693.HK) decreased by 4.84%, Zijin Mining (02899.HK) decreased by 3.33%, and Zhaojin Mining (01818.HK) decreased by 3.08%.

According to analysts, gold mining stocks face significantly increased short-term technical adjustment risks after reaching new highs, and investors need to remain vigilant. The rate of increase in the stock prices of many gold mining companies far exceeds the growth rate of their earnings (net profit), and valuation metrics such as PER are at historically high levels, showing signs of a bubble. High valuations must be absorbed by either a decline in stock prices or an improvement in earnings, which increases short-term risks. However, the long-term fundamentals supporting the rise in gold prices (central bank purchases of gold, de-dollarization, geopolitical risks) remain robust. Going forward, there will likely be a tug-of-war between “short-term fluctuations” and “long-term trends.”

Recently, stocks related to robots that have been hotly debated are also in a correction phase. Dakechang Electric Holdings (00179.HK) fell by 10.25%, Jikzhijia-W (02590.HK) fell by 8.26%, Zhipeixing Robotics-W (09660.HK) fell by 6.65%, Weichuang Robotics-B (02252.HK) fell by 5.72%, and Jinli Yongci (06680.HK) fell by 6.19%.

In the rising stocks, the power sector rose against the overall market trend. Fuyao Glass (06865.HK) was up 5.67%, Longyuan Power (00916.HK) was up 3.55%, Ruifeng New Energy (00527.HK) was up 6.78%, and China High-Speed Transmission (00658.HK) was up 3.76%.

In the news, many new energy generation companies have recently received renewable energy subsidies, with the solar power project company under Sun Energy receiving subsidies that increased by 232% year-on-year from January to August, reaching 170% for the entire year of 2024. Jinkai New Energy received subsidies that increased by 342% year-on-year from January to August, reaching 190% for the entire year of 2024. Analysts point out that as the profitability of wind and solar projects is squeezed by market-driven revenue and rising costs, the “concentrated payment of historically overdue subsidies” is a potential policy measure that can immediately stimulate developers' investment intentions and will support domestic solar demand to some extent in 2026.

In terms of consumption, sectors related to pork, agricultural stocks, dairy stocks, and holiday-related sectors have all risen. Asia Fruit Industry (00073.HK) is up 10.12%, China Travel Service (00308.HK) is up 10.27%, Modern Farming (01117.HK) is up 1.64%, and China Resources Beer (00291.HK) among others have also increased.

Disclaimer: For reference only. Past performance is not indicative of future results.