Hong Kong Stock Market Closing | Three Major Indices Underperform, Tech and Oil/Gas Sectors Slump, Small-Cap Thematic Stocks Explode Against the Trend

Market Overview

▪ On March 31, the three major Hong Kong stock indices collectively fell, ending with a poor closing performance.

▪ The HSI closed at 24788.14 points, up 0.15% today, remaining some distance from the periodic high reached on March 18.

▪ The Hang Seng Tech Index closed at 4649.82 points, with a drop of as much as 0.86%, plunging to a near two-week low and likewise failing to break through its periodic high since March 18.

▪ The HSCEI closed at 8374.3 points, down 0.30%, also far below its previous high, with market sentiment clearly under pressure.

Sector Performance

▪ Technology and internet sectors led the decline, with the Hang Seng Tech Index falling 8.98%. Mainstream tech stocks generally pulled back. The leader, Tencent Holdings, rose slightly by 0.50%, primarily supported by price increases in AI computing products and expectations for its cloud service business. SENSETIME-W fell 1.08%, which, despite benefiting from the influence of a collaboration initiative among leading AI enterprises, saw its trend affected by market volatility. KUAISHOU-W rose 0.22%, boosted by the positive news of a buyback, with short-term funds tending toward defensive positions. BIDU-SWR rose slightly by 0.09%, driven by the dividends of AI cloud price hikes and growth in industry demand. Xiaomi-W fell 1.91%, BABA-W fell 1.24%, and Meituan-W fell 1.48%, indicating that heavyweight tech stocks were generally under pressure.

▪ The oil and gas sector performed weakly, with CNOOC plunging 3.11% and CNOOC-R dropping as much as 4.07%. UNITEDENERGY GP fell 8.33%, facing short-term earnings pressure after its 2025 performance announcement due to oil price volatility and asset impairments. Although CNOOC received rating upgrades and southbound capital inflows, the sector as a whole still declined under the influence of crude oil prices.

▪ Intra-sector rotation was intense, with small cap growth stocks and thematic stocks showing strong performance. SYNAGISTICS rose 5.69%, at one point surging 18.06% intraday, driven by active short-term funds; themes related to machinery, logistics, and AI automation were sought after, and some concept leaders soared, reflecting a market risk preference shifting toward growth and high-elasticity directions.

Macroeconomic Background

▪ Hong Kong stocks have recently continued to focus on macroeconomic indicators, with the trend of the import annual rate being widely interpreted by the market as a barometer of economic linkage.

▪ Since March, external economic changes and global capital flows have had an increased impact on the market, causing investors to remain highly sensitive to policy adjustments, capital inflows and outflows, and macroeconomic data performance.

▪ Overall, the linkage between international and mainland economies has strengthened. Market volatility is dominated by macroeconomic news and sector rotation, with short-term trading funds taking the lead, and sentiment fluctuates frequently along with industry hotspots.

Hot Stocks

▪ SEYOND (2665.HK) rose 28.25%, with a turnover of 10.7523 million HKD. The company released its annual results and reached an L4-level autonomous delivery strategic cooperation with Jiushi Intelligence. By the end of 2025, cumulative deliveries of the 'Falcon' series LiDAR exceeded 600,000 units, and a long-term supply relationship was established, driving the market's continued optimism regarding its high gross margins and scale effects. Driven by this event, capital poured in, and the sector's popularity increased.

▪ PATEO (2889.HK) rose 19.43%, with a turnover of 27.9719 million HKD. The 2025 annual results were announced, with revenue increasing 37.26% year-on-year and deliveries of smart cockpit domain controllers increasing by 40%. Cornerstone investors voluntarily extended the share lock-up period by 18 months, highlighting capital confidence and sector sustainability; the market continues to focus on its smart driving growth attributes.

▪ CMON (1792.HK) rose 38.83%, with a turnover of 809,900 HKD. Within a short period, its range-bound increase reached 40.78%. Small cap thematic stocks were sought after by hot money, and market activity increased. Thematic funds rotated rapidly in the short term, and the strong surge drove market sentiment.

▪ C TRANSMISSION (658.HK) rose 31.76%, with a turnover of 1.1437 million HKD. The machinery and equipment sector saw net capital inflows, and high turnover rates and technical trends drove the company's performance, as the short-term prosperity of the industry moved upward.

▪ RONGZUN INT’L H (1780.HK) rose 22.37%, with a turnover of 1.8618 million HKD. The maximum single-day increase reached 27.63%. The linkage between sector and thematic funds created a strong performance, and market attention toward high-growth small cap stocks has significantly increased.

Market Turnover TOP 10

▪ Tencent Holdings (700.HK) Latest price 484.00 HKD, up 0.50%, turnover 1.251 billion HKD

▪ BABA-W (9988.HK) Latest price 119.00 HKD, down 1.24%, turnover 858 million HKD

▪ CNOOC (883.HK) Latest price 28.00 HKD, down 3.11%, turnover 619 million HKD

▪ YOFC (6869.HK) Latest price 183.00 HKD, down 7.11%, turnover 600 million HKD

▪ Xiaomi-W (1810.HK) Latest price 31.76 HKD, down 1.91%, turnover 553 million HKD

▪ POP MART (9992.HK) Latest price 143.60 HKD, down 3.43%, turnover 525 million HKD

▪ Meituan-W (3690.HK) Latest price 82.95 HKD, down 1.48%, turnover 344 million HKD

▪ CCB (939.HK) Latest price 8.39 HKD, up 1.82%, turnover 297 million HKD

▪ BYD COMPANY (1211.HK) Latest price 105.80 HKD, up 0.00%, turnover 290 million HKD

▪ SMIC (981.HK) Latest price 50.70 HKD, down 1.36%, turnover 252 million HKD