{Economic Information Daily, 24th} Chinese President Xi Jinping has earlier arrived in the United States and received high-level hospitality from U.S. President Trump. The two leaders are scheduled to hold a formal meeting on 24th U.S. Eastern Time, creating a cautious market sentiment ahead of the Xi-Trump summit; coupled with the U.S. September manufacturing PMI surging to 57, far exceeding expectations, and interest rate futures indicating over 70% probability of another U.S. rate hike in October, the Hang Seng Index opened 184 points lower. Although the decline narrowed later, the index still fell 72 points, or 0.3%, closing at 24,761. Turnover on the main board further shrank to approximately HK$159.6 billion. The Hang Seng China Enterprises Index closed at 8,266, down 7 points, or less than 0.1%. The Hang Seng Tech Index closed at 4,361, down 17 points, or 0.4%. Additionally, A-shares opened low and continued to fall today, with the Shenzhen Component Index closing down 2.3% and the Shanghai Composite Index down 1.2%.
Trading activity in Hong Kong stocks remains sluggish. Mai Ka-ka, Head of Financial Products Trading and Head of Research at Yuanta Securities (Asia), stated that market sentiment is extremely cautious, mainly due to anticipation of the 'Xi-Trump summit', the suspension of northbound trading for the Mid-Autumn Festival holiday tomorrow, and persistently high U.S. bond yields and oil prices—three bearish factors collectively pressuring the market. She pointed out that under these macroeconomic headwinds, investor willingness to enter the market is low. Even after the 'Xi-Trump summit' concludes and northbound trading resumes, if bond yields and oil prices fail to decline, market turnover will remain cautious. However, she believes that the absence of northbound flows tomorrow does not necessarily mean a sharp drop in Hong Kong stocks, but it will significantly weaken market support, making Hong Kong stocks more susceptible to external market conditions and local fund flows.
From a capital flow perspective, today saw overall net selling in Hong Kong stocks, but after A-shares closed, some funds shifted into Hong Kong stocks, turning the market into net inflow toward the end of the session. However, with northbound trading suspended tomorrow and the buy-sell ratio among ultra-large traders (with transaction amounts exceeding HK$10 million) reaching 45:55, it is foreseeable that market support for Hong Kong stocks will weaken further tomorrow. Currently, the market generally believes the focus of the Xi-Trump summit will be on preventing further deterioration of relations, offering little positive stimulus to the Hang Seng Index. Having declined for two consecutive days, the index may break lower again under insufficient support. Therefore, the immediate support level is placed at 24,500 points; if market support remains weak and expectations for another U.S. rate hike intensify, further testing of previous support levels cannot be ruled out.
*Rate hike expectations rise, dragging down base metal stocks; selective mainland bank stocks support the market*
The U.S. September manufacturing PMI significantly exceeded expectations, increasing expectations for two consecutive months of U.S. rate hikes, leading to softer base metal prices and dragging down related sectors. CMOC (03993) fell 3.7% to HK$15.08; Jiangxi Copper Company (00358) dropped 3.5% to HK$33; MMG (01208) declined 3.3% to HK$8.575; China Hongqiao (01378) fell 2.3% to HK$20.82; Zijin Mining (02899) dropped 2.6% to HK$32.72; Shandong Gold (01787) fell 3.3% to HK$20.72.
U.S. Treasury Secretary Bessent mentioned reaching agreements on financial services, lifting some mainland bank stocks. Agricultural Bank of China (01288) rose 1.8% to HK$6.61; Industrial and Commercial Bank of China (01398) gained 1.6% to HK$7.66; Bank of China (03988) increased 0.7% to HK$6.04; China Construction Bank (00939) edged up 0.2% to HK$9.68; China Merchants Bank (03968) dipped slightly less than 0.1% to HK$51.2.
*Insilico Intelligence shows rising trend waves; wait for pullback to deploy*
Reviewing Insilico Intelligence's (03696) interim results announced at the end of August, the company achieved its first profit turnaround in the first half of 2026, with significant growth in both revenue and profits, primarily driven by upfront payments from external licensing.
In terms of business, Insilico Intelligence has established collaborations with several international pharmaceutical companies since 2026, including Eli Lilly, Takeda Pharmaceutical, and SK Biopharmaceuticals. Meanwhile, its internal pipeline has made clear progress—for example, its drug ISM6331 for treating advanced mesothelioma has received FDA Fast Track designation. Overall, the company's future performance is expected to remain positive.
Technically, Insilico Intelligence's share price has been moving along an upward trajectory since mid-June, showing a pattern of higher highs and higher lows. The stock has seen a clear pullback over the past two trading sessions, so investors may consider positioning after volatility factors from the Xi-Trump summit dissipate. It is recommended to wait for the share price to fall further toward support near the 20-day moving average (around HK$52) before considering entry, with an initial target at the mid-May high of approximately HK$69. However, given the stock's high volatility, small position sizing is advisable at this stage. (am)
Trading activity in Hong Kong stocks remains sluggish. Mai Ka-ka, Head of Financial Products Trading and Head of Research at Yuanta Securities (Asia), stated that market sentiment is extremely cautious, mainly due to anticipation of the 'Xi-Trump summit', the suspension of northbound trading for the Mid-Autumn Festival holiday tomorrow, and persistently high U.S. bond yields and oil prices—three bearish factors collectively pressuring the market. She pointed out that under these macroeconomic headwinds, investor willingness to enter the market is low. Even after the 'Xi-Trump summit' concludes and northbound trading resumes, if bond yields and oil prices fail to decline, market turnover will remain cautious. However, she believes that the absence of northbound flows tomorrow does not necessarily mean a sharp drop in Hong Kong stocks, but it will significantly weaken market support, making Hong Kong stocks more susceptible to external market conditions and local fund flows.
From a capital flow perspective, today saw overall net selling in Hong Kong stocks, but after A-shares closed, some funds shifted into Hong Kong stocks, turning the market into net inflow toward the end of the session. However, with northbound trading suspended tomorrow and the buy-sell ratio among ultra-large traders (with transaction amounts exceeding HK$10 million) reaching 45:55, it is foreseeable that market support for Hong Kong stocks will weaken further tomorrow. Currently, the market generally believes the focus of the Xi-Trump summit will be on preventing further deterioration of relations, offering little positive stimulus to the Hang Seng Index. Having declined for two consecutive days, the index may break lower again under insufficient support. Therefore, the immediate support level is placed at 24,500 points; if market support remains weak and expectations for another U.S. rate hike intensify, further testing of previous support levels cannot be ruled out.
*Rate hike expectations rise, dragging down base metal stocks; selective mainland bank stocks support the market*
The U.S. September manufacturing PMI significantly exceeded expectations, increasing expectations for two consecutive months of U.S. rate hikes, leading to softer base metal prices and dragging down related sectors. CMOC (03993) fell 3.7% to HK$15.08; Jiangxi Copper Company (00358) dropped 3.5% to HK$33; MMG (01208) declined 3.3% to HK$8.575; China Hongqiao (01378) fell 2.3% to HK$20.82; Zijin Mining (02899) dropped 2.6% to HK$32.72; Shandong Gold (01787) fell 3.3% to HK$20.72.
U.S. Treasury Secretary Bessent mentioned reaching agreements on financial services, lifting some mainland bank stocks. Agricultural Bank of China (01288) rose 1.8% to HK$6.61; Industrial and Commercial Bank of China (01398) gained 1.6% to HK$7.66; Bank of China (03988) increased 0.7% to HK$6.04; China Construction Bank (00939) edged up 0.2% to HK$9.68; China Merchants Bank (03968) dipped slightly less than 0.1% to HK$51.2.
*Insilico Intelligence shows rising trend waves; wait for pullback to deploy*
Reviewing Insilico Intelligence's (03696) interim results announced at the end of August, the company achieved its first profit turnaround in the first half of 2026, with significant growth in both revenue and profits, primarily driven by upfront payments from external licensing.
In terms of business, Insilico Intelligence has established collaborations with several international pharmaceutical companies since 2026, including Eli Lilly, Takeda Pharmaceutical, and SK Biopharmaceuticals. Meanwhile, its internal pipeline has made clear progress—for example, its drug ISM6331 for treating advanced mesothelioma has received FDA Fast Track designation. Overall, the company's future performance is expected to remain positive.
Technically, Insilico Intelligence's share price has been moving along an upward trajectory since mid-June, showing a pattern of higher highs and higher lows. The stock has seen a clear pullback over the past two trading sessions, so investors may consider positioning after volatility factors from the Xi-Trump summit dissipate. It is recommended to wait for the share price to fall further toward support near the 20-day moving average (around HK$52) before considering entry, with an initial target at the mid-May high of approximately HK$69. However, given the stock's high volatility, small position sizing is advisable at this stage. (am)
