Market participants grew increasingly confident in a September rate hike by the US Federal Reserve, while rising oil prices intensified inflation worries, pressuring Asia-Pacific equities on Thursday. Investors stayed on the sidelines ahead of the crucial CPI data release due later in the day.
At the closing bell, the Hang Seng Index had fallen 0.60% or 148.84 points to 24,805.63, with total turnover reaching HK$228.431 billion. The Hang Seng China Enterprises Index dropped 0.34% to 8,246.33 points, while the Hang Seng Tech Index declined 0.23% to 4,320.57 points. For the week, the Hang Seng Index is down 3.3%, the HSCEI has lost 3.61%, and the Hang Seng Tech Index has shed 5.45%.
Haitong International Chief Economist Zhang Yidong believes overseas liquidity conditions could finally turn for the better in September. He expects the 10-year US Treasury yield to retreat after climbing to around 5%, and anticipates more proactive policy measures from Beijing, particularly regarding the stock market. Zhang suggests September could mark a reversal to the upside, advising investors to position for an autumn rally on dips. He cautions, however, that gains in the coming months will be driven by a disciplined expansion of investment logic focused on organic or external growth in earnings, rather than the previous sharp rally driven primarily by valuation recovery.
Blue-Chip Movers
SHK PPT (00016) suffered a sharp post-results selloff, closing down 7.28% at HK$108.2 on turnover of HK$1.729 billion. Morgan Stanley noted that SHK PPT's FY2026 earnings per share forecast of HK$7.89, representing 5% year-on-year growth, is 4% below the brokerage's projection and 2% below consensus. Citing near-term headwinds from recent regulatory developments and rate hike concerns, as well as uncertainty surrounding dividend fluctuations tied to property sales profit, the firm maintained its "Market Perform" rating with a target price of HK$121.
Other blue chips showed mixed performance. Orient Overseas International (00316) gained 2.27% to HK$148.9, and Galaxy Entertainment (00027) rose 2.18% to HK$32.78. Conversely, CMOC Group (03993) fell 7.73% to HK$16.00, while Zijin Mining Group (02899) dropped 6.75% to HK$34.82.
Sector Highlights
Internet technology stocks showed signs of recovery, with Xiaomi climbing 1.7%, Tencent rising 0.66%, and Alibaba adding 0.56%. Non-ferrous metal stocks were the day's primary decliners after reports suggested the White House's copper tariff plan has stalled; Jiangxi Copper (00358) plunged 9.19% and MMG (01208) sank 8.20%. Gold-related stocks and mainland property developers also traded lower, while lithium battery and pharmaceutical sectors remained weak. Robotics-related names diverged, with Huayan Robotics surging 25%.
Copper mining stocks were among the hardest hit. Jiangxi Copper (00358) closed down 9.19% at HK$34.96, MMG (01208) fell 8.20% to HK$9.07, and CMOC Group (03993) dropped 7.73% to HK$16.00. International copper prices tumbled sharply on Thursday, with LME and COMEX copper falling approximately 3.5% and 4.8%, respectively. According to reports citing two informed sources, the White House has yet to decide whether to impose tariffs on refined copper, with officials weighing the trade-offs: higher copper prices could increase manufacturing costs, but benefits would include incentivizing increased domestic mining. Previously, expectations that tariffs would be placed on refined copper products like cathode and copper concentrate prompted traders and industrial buyers to stockpile inventories in the US, pushing copper prices to record highs.
Gold stocks pared losses in the afternoon, while oil-related shares drifted lower. China Gold International (02099) slipped 1.62% to HK$266.6, Shandong Gold Mining (01787) dipped 1.37% to HK$24.4, CNOOC (00883) fell 2.56% to HK$24.38, and China Oilfield Services (02883) eased 3.00% to HK$7.61. The US August PPI rose more than expected year-on-year, lifting market odds of a September Fed rate hike to roughly 70%. Heightened rate expectations and rising real yields pressured gold prices in the morning session, but prices staged a V-shaped recovery in the afternoon as international oil prices swooned and both gold and silver bounced. On the geopolitical front, afternoon reports indicated that Yemen's Houthi Supreme Political Council issued a statement declaring that clashes along the Red Sea's west coast provinces have ceased, adding that Saudi Arabia's forces, previously mobilized to threaten related areas, had been repelled.
Optical communication concept stocks traded actively against the market trend. ZJ INNOLIGHT (03308) rose 4.37% to HK$1,170, and Yangtze Optical Fibre and Cable (06869) climbed 3.44% to HK$183.5. On September 11, the US Federal Communications Commission's relevant final rules officially took effect. While the new FCC regulations penetrate to upstream components, several optical module companies including ZJ INNOLIGHT and Eoptolink were not listed. Analysts suggest that for the sector, this means the extreme pessimistic assumptions surrounding the FCC have essentially not materialized, particularly as policy certainty is higher for passive components, presenting a positive overall shift in risk appetite for optical communications.
MLCC concept stocks strengthened in the afternoon. Tonly Electronics Holdings (00117) gained 8.31% to HK$3.52, and CCTC (06951) rose 4.01% to HK$124.4. MLCC leader Murata Manufacturing recently issued an official notice announcing it will launch a product line optimization initiative in fiscal year 2026, discontinuing certain MLCC products while expanding other capacity. The discontinuation scope includes specific part numbers in both consumer-grade standard series and automotive-grade series. Market analysts believe the company aims to terminate production of low-margin mature part numbers, freeing capacity to aggressively expand advanced high-end product lines. Murata's lead times for high-value-added MLCCs have reportedly stretched sharply from 8-10 weeks to 20-26 weeks.
Robotics-related stocks showed divergent performance. Huayan Robotics (01021) soared 25.62% to HK$11.89, Mech-Mind Robotics (09615) jumped 6.2% to HK$95, while Dobot (02432) slipped 2.86% to HK$21.04. On the A-share market, humanoid robot leader Unitree Robotics fell 4.3% to RMB477.12, extending losses to a new low since listing, having retreated over 55% from its August 19 high with its total market value shrinking by approximately RMB240 billion, as doubts grow in the secondary market over the commercialization prospects of embodied intelligence. Notably, Mech-Mind founder Shao Tianlan recently posted on social media questioning the industry's current state, drawing attention by calling out "assembly-style" companies that allegedly fabricate revenue through data collection centers and related-party transactions, specifically naming Galaxy General. Galaxy General responded by saying it "does not participate in verbal wars, only races against time."
Notable Stock Movements
Huayan Robotics (01021) surged on heavy volume, closing up 25.62% at HK$11.89. The stock was added to the Stock Connect southbound trading list effective September 7, unlocking access to mainland capital. BOCI research noted that Huayan has evolved into a platform-type robotics company built on a scale base of collaborative robots, with core motion components and motion control capabilities as its growth engine, representing one of the largest market expectation gaps currently.
Chervon (02285) displayed strength throughout the session, closing up 23.00% at HK$24.6. The company announced on the evening of September 10 that Joseph Galli Jr. had been appointed Chief Executive Officer, effective September 10. On the effective date, company founder Poon Lun Kuen stepped down as CEO but will continue serving as Executive Director and Chairman. Galli previously served as CEO of Techtronic Industries' electrical tools division and held the roles of CEO and Executive Director at Techtronic Industries from February 2008 to May 2024.
TYK Medicines-B (02410) advanced notably, closing up 11.38% at HK$2.985. The company announced that Chairman, Executive Director and President Wu Yusheng purchased 635,000 H-shares in the open market between September 8-10, representing approximately 0.17% of issued share capital, at a total consideration of approximately HK$2.09 million, with a commitment to lock up the shares for six months. The company indicated that Wu Yusheng has informed it he may continue purchasing shares in the future based on market conditions.
Dajin Heavy Industry (01081) continued its upward trajectory, closing up 10.78% at HK$31.66. Huaxi Securities noted the company is well-positioned to benefit from European offshore wind development, with overseas business growth potential expected to expand further as multiple rounds of offshore wind tenders are released. With its proprietary fleet gradually becoming operational, export marine engineering capacity fully upgraded, overseas home port layout continuously improving, and vessel construction focused on commercial vessels and offshore engineering ships, the company's competitive moat is transitioning from "single manufacturing capability" to an integrated "manufacturing + transportation + delivery" full-chain solution.