Hong Kong stocks review | The Hong Kong stock market slightly declined, with new stock listings surging and two doubling in value. Aluminum industry stocks led the gains.

The Paper reporter | Zeng Zijian    The Paper editor | Yuan Dong

Today (March 30), Hong Kong stocks edged lower, and the Hang Seng Tech Index again hit a new intraperiod low.

By the close, the Hang Seng Index was at 24,750.79 points, down 201.09 points, or 0.81%.

The Hang Seng Tech Index closed at 4,690.08 points, down 87.93 points, or 1.84%.

In terms of focus sectors, aluminum stocks led the market gains throughout the day. Among them, Chalco International (HK02068) rose by more than 22%, Aluminum Corporation of China (HK02600) rose by more than 7%, and China Hongqiao (HK01378) rose by more than 3%.

On the news front, disturbances to the situation in the Middle East over the weekend continued to roil the market. Attacks on key aluminum production facilities within the UAE and Bahrain have kept escalating, and risks of supply disruptions in the Middle East region continued to heat up, sparking a global aluminum market rally. In the early trading, London Metal Exchange (LME) aluminum prices surged by more than 4%, topping out at 3,492 USD/ton. A-share and Hong Kong aluminum sectors all saw a simultaneous breakout, lifting the CSI 800 Nonferrous Metals Index—which has higher aluminum content—by more than 1%.

CITIC-Prudential Fund believes that looking ahead, production safety risks may further expand the scope of shutdowns within the region. First, energy supply disruptions may lead to unstable power supply for electrolytic aluminum plants, making safety incidents such as short circuits more likely. Second, the high recovery cost and long timeframe caused by emergency production halts. For safety and business considerations, more aluminum plants in the future may choose to proactively reduce load or close. Since the Iran-U.S. conflict, European natural gas benchmark prices have risen sharply. Because about 60% of Europe’s electricity prices are determined by natural gas, continued energy interruptions may face further increases in energy prices, forcing electrolytic aluminum to reduce output or even shut down. In summary, supply-side contraction and rebound are expected to drive the global aluminum price benchmark higher, and related valuation re-pricing opportunities may be worth paying some attention to.

For new listings, four new stocks were listed on the same day today. Except for HuaYan Robotics (HK01021), which showed relatively moderate performance, rising 8%, the other three stocks surged sharply. Among them, Qianshijiao (HK06636) jumped 150%, Desai-B (HK02526) rose 111%, and Hantiancheng (HK02726) rose 35%.

In other areas, on the trading board, internet and technology stocks fell broadly. Bilibili fell by more than 3%. Baidu, Tencent, and Kuaishou each fell by more than 2%. Alibaba, Xiaomi, Lenovo, and Meituan each fell by more than 1%. Gold stocks strengthened, with Zijin Mining? (Chifeng Gold) rising by more than 10%. Photovoltaic solar stocks weakened, with Xinte Energy falling by more than 5%.

In terms of capital flows, Southbound capital saw a slight net outflow today. By the close, Southbound capital recorded net selling of more than HK$2.4 billion in Hong Kong stocks.

Outlook for the next phase:

CITIC Securities Jian? believes that Hong Kong stocks have entered the first opportunity to go long after the Spring Festival. The firm noted that since February, Hong Kong stocks have started a rapid correction, but the bull market pattern has not ended. This pullback is a typical mid-cycle adjustment within a bull market, and the current period is the first “go long” window worth actively seizing this year. If external shocks do not further escalate later on, Hong Kong stocks are likely to move out of the adjustment range and return to a choppy upward channel.

In a weekly viewpoint published today, Haitong Securities? advised maintaining a cautious stance and reducing the frequency of trades when there is a lot of noisy information. The firm believes that the key variable for current market decision-making—whether the Strait of Hormuz remains open to navigation—still remains difficult to call.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before using. All actions taken are at your own risk.

Cover image source: The Paper media resource library

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