Today, Hong Kong stocks showed a sharp decline throughout the day. The Hang Seng Technology Index plummeted 2.41%, and the Hang Seng Index and China Index both fell 1.7%. Both recorded 3 consecutive declines, and the Hang Seng Index fell below the 10,000 mark.

On the market, the collective decline of large technology stocks and large financial stocks dragged down the downside of the market. NetEase plummeted by nearly 8%, Alibaba and JD all fell, and most weights such as CITIC Securities, China Ping An, and China Merchants Bank fell by more than 2%.

Domestic housing stocks and non-ferrous metals stocks collectively came to an end; the aviation sector, which had strong performance yesterday, saw a sharp decline, while semiconductor stocks, catering stocks, biotechnology stocks, automobile stocks, electricity stocks, and gambling stocks fell sharply.

On the other hand, a small number of short video concept stocks and coal stocks bucked the trend. Earnings for the first quarter beat expectations. Kuaishou closed up about 2%, and Yankuang Energy and China Shenhua flourished.

Let's take a look specifically:

Gold and silver prices fell sharply, dragging down non-ferrous related sectors. China Baiyin Group fell more than 10%, Lingbao Gold fell more than 6%, Zhaojin Mining, Minmetals Resources, and China Nonferrous Mining fell 4%, and Jiangxi Copper, Zijin Mining, and Shandong Gold fell more than 3%.

According to the news, the minutes of the Federal Reserve's FOMC meeting were hawkish, undermining hopes of cutting interest rates, and the prices of gold and silver fell sharply.

Auto stocks declined, with Zero Sports Auto, Guangzhou Automobile Group, and Xiaopeng Motors falling more than 5%, Ideal Auto and NIO Auto falling by more than 4%, and Geely Auto all falling by more than 3%.

The game software sector continued to decline, with Feiyu Technology and NetEase falling by more than 7%, Zulong Entertainment by more than 4%, Xindong by more than 2%, and Dream World, China Mobile Games, and IGG falling by more than 1%.

Property stocks pulled back, Greentown Management Holdings fell more than 8%, Jinmao Services and Times Neighborhood fell more than 7%, and Zhengrong Services, Evergrande Property, Shimao Services, and Sunac Services fell more than 6%.

Airlines stocks fell collectively, with Air China and China Southern Airlines falling more than 5%, Meilan Airport falling more than 4%, and Capital Airport, Eastern Airlines, and Cathay Pacific falling more than 3%.

Paper stocks weakened, with Nine Dragons Paper and Liwen Paper falling more than 4%, Chenming Paper falling more than 3%, and Sunshine Paper falling more than 1%.

Power equipment stocks fell, with Follett Glass falling more than 5%, Northeast Electric and China High Speed Rotation falling more than 4%, Goldwind Technology, Tianneng Power, and Shanghai Electric falling more than 3%, and Xinyi Solar, GCL Technology, and Dongfang Electric falling more than 2%.

At the individual stock level,Jinhui Holdings bucked the trend and surged by more than 82% to HK$4. The stock price hit a new high since February 8, and the turnover increased to HK$249 million.

Jinhui Holdings' first quarter revenue was 8.204 billion yuan, up 16.78% year on year; net profit to mother was 65 million yuan, down 81.94% year on year.

NetEase -S once fell more than 7% to HK$141.4, the fourth consecutive trading day of decline, with a cumulative decline of more than 13%.

NetEase will announce the results of the Hong Kong stock market today. The agency expects to achieve revenue of 26.786 billion yuan in the first quarter, an increase of 6.95% year on year; earnings per share are 12.13 yuan, up 17% year on year.

In addition, Morgan Stanley published a report downgrading the NetEase US stock investment rating from “increasing holdings” to “synchronizing with the market”, and the ADR target price dropped from 120 US dollars to 100 US dollars.

Global data plummeted 11.73% to HK$7.9. Wanguo Data's net revenue for the first quarter was 2,627 billion yuan, up 9.1% year on year, slightly lower than analysts' expectations of 2.67 billion yuan; loss per ADS was 1.96 yuan, which is narrower than the loss of 2.67 yuan in the same period last year, and analysts expected a loss of 1.87 yuan.

Today,Southbound capitalNet purchases of HK$3.51 billion include net purchases of HK$2,726 million from Hong Kong Stock Connect (Shanghai) and HK$784 million from Hong Kong Stock Connect (Shenzhen).

Looking to the future,Open Source Securities believes that the current round of gains in Hong Kong stocks is mainly driven by global capital rebalancing and the return of foreign capital. Along with the continued rise in Hong Kong stocks, there have also been relatively positive marginal changes in capital in the face of changes in China's economic expectations. After an increase in the previous period, the Hong Kong stock market is still at a reasonably low level of valuation. The Hang Seng Composite Index is 0.79 times PB-TTM, and the average PE value of the Hong Kong Stock Internet in 2024 is 22.5x, which means that capital still has a certain degree of valuation tolerance.

Looking at the continuation of the global capital rebalancing trend in the short term, it still depends on fundamental trends in the Chinese economy in the medium term. Waiting for real estate to exceed expectations and exports and manufacturing to continue to drive a steady recovery in the Chinese economy will drive a more prominent market in Hong Kong stocks.