Hong Kong Stock Closing | Hang Seng Tech Index Falls Below 5000 Points, AI Applications and Related Stocks Lead Declines

China Securities Journal, March 19 (Editor: Hu Jiarong) - The three major Hong Kong stock indices all declined. At the close, the Hang Seng Index fell 2.02% to 25,500.58 points; the Technology Index dropped 2.19% to 4,996.28 points; and the H-shares Index decreased 1.58% to 8,695.88 points.

From the chart above, the technology index led the decline. After opening slightly lower this morning, it briefly touched 5,068.28 points. The market then came under further pressure and declined again, ultimately closing below 5,000 points.

Component stocks generally saw significant adjustments. By the close, Tencent Music-SW (01698.HK), Tencent Holdings (00700.HK), Kuaishou-W (01024.HK), and Huahong Semiconductor (01347.HK) all fell more than 5%.

Today’s Market

Looking at the market structure, energy sectors such as coal and oil led the gains against the trend due to the escalation of tensions in the Middle East, becoming the main focus today; conversely, sectors like gold, electrical equipment, AI applications, optical communications, and aerospace stocks generally declined, weighed down by US inflation data exceeding expectations and tech stock adjustments in the US markets.

Alternative effects drive valuation reassessment: Mongolia Energy up over 8%

At the close, Mongolia Energy (00276.HK) rose 8.62%, Yankuang Australia (03668.HK) increased 7.89%, and Yankuang Energy (01171.HK) gained 4.26%.

In related news, after Iran’s gas fields were attacked, Iran announced a full crackdown on US-related oil facilities and designated energy facilities in Saudi Arabia, UAE, and Qatar as legitimate targets. Emergency evacuations have been initiated in these regions.

Guosheng Securities research reports indicate that soaring LNG prices will benefit coal. High gas prices are forcing power plants and industrial users to switch to coal-fired power and coal-to-gas, directly boosting thermal coal demand.

Stimulated by the above news, Hong Kong oil and equipment stocks also rose. By the close, CNOOC International (00346.HK) surged 15.29%, China National Offshore Oil Corporation (00883.HK) increased 4.52%, and China National Petroleum Corporation (00857.HK) rose 2.39%.

By the close, BGP Inc. (02178.HK) gained 13.46%, Shandong Molybdenum (00568.HK) rose 12.91%, and Sinopec Oilfield Service (01033.HK) increased 5.05%.

Notably, after Iran threatened and launched attacks on energy facilities, international oil prices surged. WTI crude oil briefly rose nearly 4% during trading. As of the report, it was up 0.69% at $96.15.

Inflation heats up, easing expectations pressure: Lingbao Gold down over 14%

At the close, Lingbao Gold (03330.HK) fell 14.47%, China Gold International (02099.HK) dropped 10.50%, and Zijin Gold International (02259.HK) declined 9.29%.

In related news, US Labor Department data showed that in February, producer price index (PPI) increased more than expected both month-over-month and year-over-year, indicating renewed inflationary pressure in the US. This caused traders to sharply reduce bets on Fed rate cuts this year, strengthening the US dollar index and putting pressure on dollar-denominated precious metals like gold and silver.

Electrical equipment stocks mostly declined: NEI Electric (01133.HK) down nearly 8%

At the close, Harbin Electric (01133.HK) fell 7.64%, NEI Electric (00042.HK) declined 6.86%, and Dongfang Electric (01072.HK) dropped 6.46%.

Despite the short-term correction, CITIC Construction Investment research emphasizes that the long-term logic remains unchanged. With the explosion in demand for AI data centers (AIDC), it is expected that North American power grid shortages will reach 39.9GW, 51.8GW, and 67.8GW in 2026-2028 respectively.

The brokerage also pointed out that current market focus is mainly on the prosperity of gas turbines. In the next six months to a year, grid investment and energy storage construction are expected to begin sustained growth. Given that North American profits far exceed those in other regions globally, the resilience of related industrial chains warrants long-term attention.

Market sentiment resonance causes adjustments: AI application stocks decline, MINIMAX down nearly 14%

At the close, MINIMAX-WP (00100.HK) fell 13.89%, Zhipu (02513.HK) declined 11.25%, and Haizhi Technology Group (02706.HK) dropped 10.33%.

According to news, AI application stocks were affected by market sentiment and overnight US tech stock adjustments.

Related optical communication stocks also declined. At the close, Long Fiber Optic Cable (06869.HK) fell 6.72%, Huahong Semiconductor (01347.HK) declined 5.75%, and Comba Telecom (02342.HK) dropped 4.97%.

Rising fuel costs erode profit expectations: Air China (00670.HK) down over 5%

At the close, China Eastern Airlines (00670.HK) fell 5.22%, Air China (00753.HK) declined 4.56%, and Meilan Airport (00357.HK) dropped 4.48%.

In related news, due to rising international oil prices, several airlines including China Southern, Spring Airlines, Juneyao, China Eastern, and China Airlines have gradually increased international flight fuel surcharges. For example, one-way fares from China to Australia increased by up to 270 yuan, and business class fares to the US increased by 500 yuan; some short routes (like Shanghai to Kuala Lumpur) saw even double the increase.

Analysts note that while increasing fuel surcharges is a necessary cost-hedging measure, it cannot fully offset the pressure from rising oil prices. In the short term, airline stocks are expected to remain under pressure.

Stock-specific movements

Lantu Auto drops over 13% on debut; analysts say the listing mode faces liquidity tests

Lantu Auto (07489.HK) fell 13.20%, closing at HKD 6.51. Analysts pointed out that although the introduction listing method used by Lantu Auto offers speed and no dilution advantages, the lack of cornerstone investor lock-in and green shoe mechanisms, combined with its exclusion from major indices leading to passive fund selling, and the absence of Hong Kong Stock Connect access preventing southbound funds from entering, all contributed to significant selling pressure on the first day.

Dongyao Pharmaceutical rises over 16% as acquisition offer becomes effective

Dongyao Pharmaceutical-B (01875.HK) increased 16.48%, closing at HKD 5.23. On March 18, WuXi Heli announced that it had successfully obtained valid acceptance for 60% of Dongyao’s shares, and the acquisition offer has officially taken effect.

WuXi Heli stated that the final acceptance deadline for this offer is 4:00 PM on March 31, 2026. Dongyao shareholders will decide whether to accept the offer during the remaining period. The final result of the offer will be announced before 7:00 PM on March 31, 2026.