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Hang Seng Index fails to break 25,000 as US Treasury yield surge cools sentiment
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Hong Kong stocks fell for a second consecutive session on September 24, with the Hang Seng Index declining 0.29%, the Hang Seng China Enterprises Index down 0.09%, and the Hang Seng Tech Index losing 0.41%. The index faced resistance at the 25,000-point level, with daily turnover dropping below HK$160 billion to HK$159.552 billion, partly attributed to holiday effects. Short-selling remained active at HK$24.827 billion, representing 15.56% of turnover. Market sentiment was dampened by a surge in US Treasury yields, with 10-year and 30-year yields both exceeding 5%, reaching levels not seen since 2007. Some institutional sources warned of potential liquidity collapse in the US bond market. Defensive sectors such as banks, power, and oil stocks outperformed, while growth-oriented sectors including AI hardware, semiconductors, and brokerages declined. In mainland China, the A-share market also fell, with over 4,300 stocks declining. Looking ahead, Dongwu Securities advised caution, characterizing the recent Hong Kong rally as short-covering following the easing of overseas risks rather than fundamental improvement, and warned that overseas risks could continue to cause volatility, recommending dynamic allocation and avoiding chasing highs.
Source report
September 24 (Caixin) — Hong Kong stocks fell for a second consecutive session on Tuesday, entering a short-term correction. At the close, the Hang Seng Index dropped 0.29%, the Hang Seng China Enterprises Index fell 0.09%, and the Hang Seng Tech Index declined 0.41%.
Market Overview: Turnover Drops Below HK$160 Billion
Large-cap tech stocks showed mixed performance:
- Baidu fell 2.54%
- Meituan, Tencent, and JD.com ended in negative territory
- Xiaomi rose over 1%
- Alibaba barely held in positive territory
- Zhipu hit a new low since the second half of the year
Sector-wise, gold, non-ferrous metals, and lithium battery stocks led the declines. AI hardware stocks retreated from short-term highs, while semiconductors, brokerages, and automakers also fell.
On the upside, banks, power utilities, and oil & gas blue-chip stocks rose against the market trend. Shipping and robotics were among the few active sectors.
Overall, Hong Kong stocks experienced a short-term rally followed by a pullback. The Hang Seng Index faced resistance at the 25,000-point level. Total turnover for the day was only HK$159.552 billion, possibly affected by holiday effects.
Short Selling Activity
Total short selling amounted to HK$24.827 billion, representing 15.56% of the Hang Seng Index's turnover, indicating sustained short-selling activity.
The top three stocks by short selling value were:
- CATL: HK$1.015 billion
- Tencent Holdings: HK$953 million
- Xiaomi Group-W: HK$820 million
U.S. Treasury Risks Weigh on Growth Assets
Most热门 sectors saw more decliners than gainers, with defensive assets clearly favored by investors.
In the near term, U.S. Treasury yields have surged again, sending risk signals to the market. Both the 10-year and 30-year U.S. Treasury yields have broken above 5%, reaching levels not seen since 2007. Some institutional analysts warned of potential chain reactions if liquidity in the U.S. Treasury market deteriorates.
Meanwhile, the speculative rebound in AI-related stocks has cooled. With limited liquidity, market funds have entered a phase of repositioning, stalling the recovery rally.
Overall, market expectations regarding further Federal Reserve rate hikes remain divided. Fluctuating interest rate expectations have triggered early adjustments in growth-style and high-valuation sectors, exacerbating losses for some investors.
A-Share Market Also Declines; Institutions Advise Caution on Chasing Hong Kong Stocks
In A-shares, all three major indices opened lower and continued to decline, shifting back into correction mode. Total turnover on the Shanghai and Shenzhen stock exchanges reached CNY 1.65 trillion, down CNY 111.6 billion from the previous session. More than 4,300 stocks ended in negative territory.
Outlook
Looking ahead, Dongwu Securities commented that Hong Kong stocks are currently in a mild rebound trend, but this is closer to short covering after the resolution of short-term overseas risks, rather than being driven by fundamental improvements. Overseas risks are unlikely to be fully resolved in one go and will continue to cause volatility. The firm recommends maintaining a dynamic allocation to Hong Kong stocks, avoiding chasing highs, and waiting for a clear turning point until fundamentals improve.
Source
财联社Eastern
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Hang Seng Index reclaims 25,000 on shrinking volume; analysts question rally sustainability