Hang Seng Index Falls 1.2% in Morning Trade, Losing 18,000 Mark; Tencent Bucks Trend While Alibaba Drags

Hang Seng Index Falls 1.2% in Morning Trade, Losing 18,000 Mark; Tencent Bucks Trend

Hong Kong stocks opened lower and extended losses in morning trading, with the Hang Seng Index falling about 1.2% and slipping below the 18,000-point psychological level. Market sentiment was cautious overall. Despite the pressure on the broader market, heavyweight Tencent Holdings rose against the trend, becoming a key support for the index, while Alibaba dragged on the index. With bullish and bearish forces intertwined, turnover expanded compared with recent sessions, and the movement of southbound capital also drew attention.

Market Snapshot: HSI Opens Lower, Loses 18,000 Mark

The Hang Seng Index opened more than 100 points lower and losses gradually widened, clearly breaking below the 18,000-point psychological level before the midday close. According to trader feedback, selling pressure in the morning came mainly from cyclical sectors and some tech heavyweights, while defensive sectors such as utilities and telecoms were relatively resilient. Market participants noted that overnight volatility in overseas markets and geopolitical uncertainties were the main triggers for the lower opening, but there was no panic selling, and the decline was relatively moderate.

Tencent Bucks Trend, Alibaba Drags Index

Amid the overall weakness, Tencent Holdings performed strongly, rising against the trend and becoming one of the biggest contributors to the Hang Seng Index. According to market analysis, Tencent's recent recovery in its gaming business and progress in monetizing video accounts have gained recognition from institutions, with some funds buying on dips during the pullback. In contrast, Alibaba's share price continued to weaken, significantly dragging on the index. Analysts believe that the slowdown in Alibaba Cloud's revenue growth and weaker-than-expected consumption recovery are putting pressure on its valuation, and it may continue to underperform the broader market in the short term.

Turnover and Southbound Capital Trends

Morning turnover increased compared with the same period yesterday, indicating greater market divergence. According to data from the Hong Kong Stock Exchange, morning turnover was already close to half of the recent daily average, with Tencent and Alibaba together contributing about 10% of the turnover. Regarding southbound capital, data from Wind showed limited net inflows in the morning, but Tencent saw the largest net buying, while Alibaba saw net selling. This divergence mirrors the stock price performance, reflecting selective preference among mainland funds for tech leaders.

Outlook: Focus on Battle for 18,000 Mark

After losing the 18,000 mark, the short-term technical picture for the Hang Seng Index has weakened, but Tencent's outperformance may provide some support. Analysts pointed out that if Tencent maintains its strength in the afternoon, the HSI could stabilize around 17,800 points; conversely, if heavyweight stocks collectively weaken, the index may decline further. In addition, the release of the Federal Reserve's meeting minutes and mainland economic data this week will be key variables affecting the direction of Hong Kong stocks. Investors are advised to remain cautious and focus on structural opportunities.