Hong Kong stocks closed (12.10) | The Hang Seng Index closed up 0.42%, and domestic housing stocks showed strong intraday changes and strengthened, Baoji Pharmaceutical-B (02659) had a strong first listing

The Zhitong Finance App learned that the performance of Hong Kong stocks was sluggish today, fluctuated in the afternoon, and the three major indices collectively turned red at the end of the session. At the close, the Hang Seng Index rose 0.42% or 106.55 points to 25540.78 points, with a full day turnover of HK$193.392 billion; the Hang Seng State-owned Enterprises Index rose 0.2% to 8954.69 points; and the Hang Seng Technology Index rose 0.48% to 5581.1 points.

The Bank of China believes that the stock market has fluctuated sharply recently, but believes that investors should maintain their strength and should not worry too much. It is normal for the stock market to adjust during a bull market, and short-term shocks will not change the upward trend of Hong Kong stocks. Haitong International pointed out that after last week's market contraction and turbulence, it is expected that the rebound will continue this week, driven by rising policy expectations, but the intensity of the rebound still depends on the strength of policy implementation and whether the Federal Reserve cuts interest rates. At the same time, if the market fully competes ahead of schedule, it is also necessary to be wary of the risk of capital borrowing and being easily realized.

Blue-chip stock performance

Dongfang Overseas International (00316) led the blue chip decline. At the close, it fell 5.92% to HK$125.5, with a turnover of HK$446 million, dragging down the Hang Seng Index by 1.66 points. On December 9, the Baltic Dry Bulk Index (BDI) reported 2,557 points, a new low since November 27, down 5.09% month-on-month, the biggest decline since October 14, 2025, and the fourth consecutive day of decline. According to some market analysts, the Baltic Sea Dry Bulk Freight Price Index (BDI) fell to a low level in nearly two weeks, mainly reflecting recent short-term fluctuations or weakening in global commodity shipping demand.

In terms of other blue-chip stocks, Wanzhou International (00288) rose 5.01% to HK$8.59, contributing 5.48 points to the Hang Seng Index; Meituan-W (03690) rose 2.72% to HK$100, contributing 23.33 points to the Hang Seng Index; China Merchants Bank (03968) fell 3.08% to HK$50.4, dragging down the Hang Seng Index by 10.01 points; and CNPC (00857) fell 1.54% to HK$8.29, dragging down the Hang Seng Index by 2.21 points.

Popular sector aspects

On the market, Vanke's first rollover bond “220,000 MTN004” was held. Affected by this news, Vanke's AH shares rose sharply and led the rise in domestic housing stocks. The CFTC announced the launch of a digital asset collateral pilot, and cryptocurrency futures and spot ETFs performed well throughout the day. Furthermore, the Hainan Provincial People's Government today issued the “Proposal of the Hainan Provincial Committee of the Communist Party of China on Formulating the Fifteenth Five-Year Plan for National Economic and Social Development”, and the concept of tax exemption was moderately promoted. On the other hand, oil and shipping stocks continued to be sluggish. Previously, popular Chinese brokerage firms, innovative pharmaceuticals, semiconductors, domestic banks, and domestic insurance stocks all declined.

1. Domestic housing stocks showed strong intraday changes. At the close, Vanke Enterprise (02202) rose 13.17% to HK$3.78; Sunac China (01918) rose 8.87% to HK$1.35; Agile Group (03383) rose 6.45% to HK$0.33; Shimao Group (00813) rose 6.4% to HK$0.216; and Jinhui Holdings (09993) rose 5.03% to HK$2.09.

On December 10, the creditors' meeting for Vanke's first rollover bond “220K MTN004” was held to discuss bond rollover matters. At the same time, the Shenzhen Stock Exchange issued a set of intraday temporary suspension notices. Many Vanke related bonds collectively surged, triggering the temporary suspension of trading. Some brokerage sources said that this creditors' meeting is very important for Vanke's bailout. There were three proposals at this meeting. Compared with the version previously anticipated by the market, two new proposals were added, which helped all parties to reach a unified consensus.

It is worth noting that on December 8, the Politburo meeting of the CPC Central Committee was held to analyze and study economic work in 2026. Among them, it is mentioned that risks in key areas are continuously prevented and mitigated. According to several agency analysts, it is expected that the policy will continue to revolve around localized debt, real estate, and small and medium-sized financial institutions, which will ease market concerns in related fields. An analyst at the League of Nations Minsheng Securities believes that it has been almost five years since the real estate industry entered a downward cycle. Referring to international experience, it is now gradually getting closer to the point of stabilization. As for the potential risks that the market is concerned about, risk factors such as debt defaults and policy fluctuations over the past year or two have been largely reflected in expectations and stock prices. Industry clearance is in an advanced stage, and companies receiving support are being repaired.

2. Cryptocurrency futures and spot ETFs had the highest gains. At the close, Harvest Ether (03179) rose 6.73% to HK$7.925; Huaxia Ether (03046) rose 6.64% to HK$7.875; Bosch Ether (03009) rose 6.3% to HK$2.52; and Harvest Bitcoin (03439) rose 2.8% to HK$11.37.

After the market on December 8, EST, the US Commodity Futures Trading Commission (CFTC) officially announced the launch of the “Derivatives Market Tokenized Collateral Digital Asset Pilot Project”. According to the announcement, digital assets allowed as eligible collateral in the early stages of the pilot include Bitcoin (BTC), Ethereum (ETH), and the US dollar stablecoin USDC. The pilot aims to explore the use of digital assets on the blockchain as compliant collateral for derivatives transactions, marking a key step in the US's process of institutionalizing crypto assets.

Some analysts pointed out that the CFTC pilot not only paved the way for the introduction of digital assets into traditional financial systems, but also provided an important reference for other global market regulatory frameworks. As the compliance path gradually becomes clear, mainstream crypto assets such as Ethereum may play a more central role in institutional investor allocations, thereby promoting the continued popularity of related ETF products.

3. Tax-free concept stocks rose moderately. At the close, China Free Trade (01880) rose 3.12% to HK$74.45; Meilan Airport (00357) rose 1.53% to HK$10.6.

On December 10, according to the official website of the Hainan Provincial People's Government, the “Proposal of the Hainan Provincial Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development” was released. Among them, it was mentioned that the “three consumer articles” will be excellent to promote “buying global quality products.” Promote the upgrading of duty-free shopping, further explore the supply of national trends, Hainan exclusives, new technological products, etc., and construct a multi-level supply pattern of “outlying island duty-free + duty-free daily consumption for island residents+cross-border e-commerce” in an orderly manner. Continue to enhance the scale and influence of the China International Consumer Goods Fair.

Furthermore, CICC indicated that on November 17, Shanghai Airport opened a tender for inbound and outbound duty-free shops at Pudong and Hongqiao International Airport, and the tender was opened on December 9. China's free bidder is the most promising bidder. Using 100% shareholders to bid is beneficial to increasing net profit to mother. CICC anticipates that China's cooperative and win-win relationship with brands and airports will continue. The growth rate of tax exemptions on the outlying islands is accelerating, and we need to pay attention to the incremental potential brought about by the new policy.

Popular exotic stocks

1. Baoji Pharmaceutical-B (02659) rose sharply at the close. At the close, it rose 138.82% to HK$63.

Priced at HK$26.38 per share, Baoji Pharmaceutical-B issued a total of 379.11,700 shares, 100 shares per lot, with a net proceeds of approximately HK$922 million. According to reports, Baoji Pharmaceutical-B has KJ017, the first recombinant human hyaluronidase reported for production in China, for high-volume subcutaneous administration; the world's first IgG degrading enzyme KJ103, which has the potential to be “best-in-class” in terms of low pre-stored antibodies and number of doses, for antibody-mediated autoimmune diseases; and SJ02, a long-acting follicle-stimulating hormone drug that has been proven through cooperation, for assisted reproduction.

2. Tudatong (02665) had an impressive debut. At the close, it rose 33% to HK$13.3.

Tudatong announced the completion of a merger and acquisition transaction for a special purpose company, and today it went public under the cover of TechStar. According to Insight Consulting data, the company is the world's first supplier of automotive-grade high-performance lidar solutions to achieve mass production. According to the prospectus, while consolidating its deep cooperation with NIO, Tudatong has added a number of OEMs, including three Chinese state-owned automobile manufacturers and a leading joint venture car company. These new locations are expected to contribute sales revenue starting at the end of 2025. Furthermore, the application of Tudatong products has expanded from the passenger car field to wider racetracks such as commercial vehicles and robots.

3. Yinnuo Pharmaceutical-B (02591) strengthened against the market. At the close, it rose 19.15% to HK$38.32.

Recently, Yinnuo Pharmaceutical-B was officially included in the list of eligible securities of Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. ^{At the same time, the company announced that the self-developed ultra-long-acting GLP-1 receptor agonist esupaglutide α (InnoLight®) will be officially included in the 2025 national medical insurance drug catalogue and will be implemented simultaneously with the new catalogue starting January 1, 2026, to provide more accessible high-quality innovative treatment options for type 2 diabetics in China.}

4. Lingbao Gold (03330) rose at the end of the session. At the close, it rose 9.36% to HK$18.46.

On the afternoon of December 10, Lingbao Gold announced that the Group has conditionally agreed to subscribe and the seller has conditionally agreed to place 50% +1 shares of St Barbara Mining Pty Ltd (target company) at a total cost of 370 million Australian dollars (about 1,735 million yuan). According to the announcement, the target company's current key projects are the Simberi open pit oxide production and sulphide ore renovation and expansion project in the New Ireland province of Papua New Guinea. In addition, the target company is also involved in a gold exploration project. Through Nord holding 100% interest in two nearby prospecting rights that are being renewed, Nord is also an enterprise developing gold exploration business in Papua New Guinea.

5. Hejia Holdings (00704) was under pressure throughout the day. At the close, it fell 38.39% to HK$0.069.

Hejia Holdings issued an announcement stating that the company received a letter from the Stock Exchange Listing Committee on December 9, informing that the company's listing committee had reviewed the company's situation and decided that the company had failed to maintain a sufficient operating scale and sufficient valuable assets to support its operations, failed to meet the requirements required by section 13.24 of the listing rules, and was therefore unsuitable for listing. The Listing Committee therefore decided to uphold the Listing Division's decision to suspend trading of the company's shares in accordance with section 6.01 (3) of the Listing Rules.