Hong Kong Stock Market Close (03.16) | Hang Seng Index Rises 1.45%, Chip Stocks Surge in Afternoon, Precious Metals Under Pressure Again

Hong Kong’s three major stock indices fluctuated and closed higher throughout the day, with the Hang Seng Index and the Hang Seng China Enterprises Index both rising over 1%. The Hang Seng Tech Index briefly surged nearly 3% in the afternoon. By the close, the Hang Seng Index increased by 1.45% or 368.42 points, closing at 25,834.02 points, with a total daily trading volume of HKD 264.453 billion; the Hang Seng China Enterprises Index rose by 1.67% to 8,816.32 points; and the Hang Seng Tech Index gained 2.69% to 5,111.78 points.

Huatai Securities believes that, looking ahead, the index bottom is gradually forming, but a sustained rebound still requires patience. External factors, such as the current strong dollar trend, may persist; internally, as earnings season nears its end, the momentum for upward revisions of profit forecasts at the start of the year is slowing down. Domestic fundamentals, especially real estate data, still need verification. Currently, the sentiment index does not point to a buying opportunity. The parallel trends of technology growth stocks and lagging stocks are a diversification strategy amid low visibility, but they inherently conflict. Once the situation becomes clearer, a significant style rotation may occur.

Blue Chip Performance

Contemporary Amperex Technology Co. Limited (03750) hit a new listing high. By the close, it rose 7.89% to HKD 670, with a trading volume of HKD 3.419 billion, contributing 10.25 points to the Hang Seng Index. Longwin Securities notes that the company’s annual report exceeded expectations overall, confirming strong demand and potentially revising shipment forecasts upward. In 2025, the company’s production capacity is expected to reach 748 GWh, with utilization at 96.9%. As of the end of Q4 2025, ongoing projects include 321 GWh of capacity, with new projects still in the pipeline. Contract liabilities at the end of Q4 2025 reached HKD 49.233 billion, an increase of HKD 8.56 billion from the previous quarter, indicating robust actual demand despite better-than-expected revenue recognition. The company also shows confidence in profit stability and new technologies.

Other blue chips included BYD Co. Ltd. (01211), which rose 7.8% to HKD 104.3, contributing 44.11 points to the index; Xiaomi Group-W (01810), up 5.64% to HKD 35.2, adding 54.45 points; Zijin Mining (02899), down 3.35% to HKD 36.98, dragging the index down by 12.18 points; and Luoyang Molybdenum (03993), down 2.28% to HKD 18.4, pulling the index down by 2.56 points.

Popular Sectors

Market-wise, Wall Street’s “big short” is bullish on Hang Seng Tech. BYD shares surged nearly 8%, leading the constituent stocks. Xiaomi’s new model SU7 is scheduled for release on March 19, boosting its stock by 5%. The semiconductor sector experienced a price increase, with chip stocks surging in the afternoon; shipping stocks were active, with COSCO SHIPPING Energy surging over 8%; and hydrogen energy concept stocks rallied late in the session after the three departments announced a pilot program for hydrogen energy applications. The new consumer concept sector performed well, with Chabaidao posting a positive earnings surprise and rising over 6%. Meanwhile, spot gold fell below the $5,000 mark, and gold stocks declined again; auto dealers, coal, and power stocks faced pressure.

1. Chip stocks surged in the afternoon. By the close, GigaDevice (03986) rose 18.41% to HKD 431; Lankash Technology (06809) up 7.98% to HKD 189.5; Huahong Semiconductor (01347) up 7.39% to HKD 94.5; Bairen Technology (06082) up 5.7% to HKD 34.1.

Following storage chips and packaging, the semiconductor supply chain may see a new wave of price hikes. Foundries like UMC, World Advanced, and Powerchip are expected to raise prices starting as early as April, with increases of up to 10% or more. Notably, media reports today indicated that Huahong has achieved a breakthrough in advanced chip manufacturing technology, with its wafer foundry Huahong Microelectronics advancing toward mass production of the latest nanometer-level process. Once scaled, this could make it one of the few domestic chip manufacturers capable of such advanced processes.

2. Some shipping stocks were active. By the close, Orient Overseas International (00316) rose 4.27% to HKD 148.8; COSCO Shipping Holdings (01919) up 4.1% to HKD 15.98.

Data from supply chain visualization company project44 shows that since late February, when hostilities between the US, Israel, and Iran escalated, causing the Strait of Hormuz to effectively close, container shipping rerouting increased by over 360%. Industry insiders say that under the impact of conflict, some cargo originally passing through the Red Sea to Egypt is shifting to Mediterranean routes via Egypt, with spot rates on the Mediterranean route rising about USD 300 per FEU last week to around USD 3,300. Additionally, on March 13, the SCFI Europe Index was USD 1,618 per TEU, up 11.4% from the previous period.

3. Hydrogen energy concept stocks surged late in the session. By the close, Jingcheng Electric (00187) rose 15.65% to HKD 5.69; Guofu Hydrogen (02582) up 5.78% to HKD 32.2; Yihuatong (02402) up 4.55% to HKD 24.82.

The Ministry of Industry and Information Technology, Ministry of Finance, and National Development and Reform Commission issued a notice on pilot projects for hydrogen energy applications. By 2030, hydrogen in urban clusters is expected to achieve large-scale application across multiple fields, with the terminal hydrogen price dropping below RMB 25 per kilogram, aiming for around RMB 15 in some advantageous regions. The number of fuel cell vehicles is targeted to double from 2025 levels, reaching 100,000 units. Expanding application scale will promote technological and process breakthroughs, including fuel cells, electrolyzers, storage and transportation devices, and materials, making hydrogen a new economic growth point and supporting a comprehensive green transformation of the economy and society.

4. Gold stocks declined again. By the close, Cifeng Gold (06693) fell 6.5% to HKD 37.68; Shandong Gold (01787) down 4.36% to HKD 36.4; Zijin Gold International (02259) down 3.51% to HKD 181.5; China Gold International (02099) down 3.33% to HKD 162.4.

On the morning of March 16, spot gold briefly plunged below USD 5,000, hitting a low of USD 4,966. According to First Financial, Guotai Junan International strategist Wu Lixian explained that the sharp decline in gold prices was mainly driven by falling gold mining stocks, as markets worry that rising crude oil prices could trigger global inflation, affecting the US’s rate cut decisions later this year. Currently, the market expects at most one rate cut in the second half of the year or possibly no cuts at all, which puts short-term pressure on gold prices. In the medium term, international gold prices may follow a “bottoming out first, then rising” pattern in Q2, with supportive factors still in place.

Hot Movers

1. Changfeng Pharmaceutical (02652) surged sharply on high volume. By the close, it rose 21.39% to HKD 27.92.

Changfeng Pharmaceutical announced that its self-developed inhaled powder spray ICF001, a modified new drug for treating pulmonary arterial hypertension (PAH) and interstitial lung disease-related PAH (PH-ILD), has received formal acceptance from the National Medical Products Administration (NMPA). This marks another inhaled formulation innovation after ICF004.

2. Zhihui (02513) strengthened throughout the day. By the close, it gained 14.15% to HKD 605.

Zhihui released its first general large model, GLM-5-Turbo, optimized for lobster farming scenarios, and simultaneously increased its API price by 20%. According to the ZClawBench evaluation benchmark, GLM-5-Turbo significantly outperformed GLM-5 in the OpenClaw scenario and led in multiple key tasks compared to other mainstream models.

3. COSCO SHIPPING Energy (01138) rose in the afternoon. By the close, it increased 8.54% to HKD 19.07.

Reports indicate that the Strait of Hormuz was free of ships on the 14th, the first such occurrence since the US and Israel launched military actions against Iran. Longwin Securities notes that in the short term, oil tanker stocks may lag due to rising prices and shrinking volumes; in the medium term, crude oil inventory replenishment cycles could trigger demand surges; long-term, the logic of demand compliance and long-term ship control continues, and oil shipping will enter a phase of high prices and rising volumes.

4. Bluereco (00325) rose after earnings. By the close, it gained 8.65% to HKD 66.55.

Bluereco announced annual results with revenue of approximately RMB 2.913 billion, up 30%; gross profit of about RMB 1.364 billion, up 15.7%; and attributable net profit to the parent of about RMB 634 million, turning from loss to profit. The revenue increase was mainly driven by a significant rise in sales of building block role-playing toys, boosting related revenues.

5. Huachen China (01114) issued a profit warning. By the close, it fell 10.88% to HKD 3.03.

Huachen China expects that the audited net profit before tax for the year ending December 31, 2025, will decrease by no more than 50% year-on-year. Despite a reduction in withholding tax by at least 69% compared to 2024, the company still expects its audited net profit after tax to decrease by no more than 40% compared to 2024, with net profit for 2024 around RMB 3.101 billion.