Hong Kong stock market closing: Hang Seng Index down 0.88%, Tech Index down 2.48%, tech stocks broadly decline, lithium battery stocks remain strong throughout the day, CATL up over 8%, Alibaba down over 6%

On March 20, it was reported that the three major Hong Kong stock indices opened lower and continued to decline. By the close, the Hang Seng Index fell 0.88% to 25,277.32 points, the Hang Seng Tech Index dropped 2.48%, and the H-shares Index declined 1.4%. In the market, tech stocks generally fell, with Xiaomi down over 8%, Alibaba down over 6%, and Kuaishou down over 2%. Lithium battery stocks remained strong throughout the day, with CATL rising over 8%. Innovative drug concept stocks weakened, with Boan Biological dropping over 4%.

Lithium battery stocks remained strong all day, with CATL up over 8%. Cinda Futures pointed out that the Jianshuwu mine has yet to resume production, and market expectations for the timeline have been significantly delayed. Downstream production in March may hit a new high, maintaining the weekly inventory depletion trend. Demand for power batteries was stimulated by national subsidies earlier this year, and energy storage remains robust. Additionally, the industry continues to see increased production, inventory depletion, and a shift of stock from upstream to downstream, reflecting strong demand. The current inventory structure is healthier than the same period last year. However, there are expectations of upstream resumption of production and pricing for demand off-season, resulting in a pattern of near-term strength and longer-term weakness.

Hong Kong tech stocks continued to weaken, with Xiaomi down over 8%. Since mid-March, as global liquidity expectations have shifted marginally and geopolitical disturbances have occurred unexpectedly, foreign institutional risk aversion has sharply increased, with rapid reductions in holdings and short-selling dominating. This structural imbalance in funds has directly led to a quick decline in the tech weights of the Hang Seng Index, causing the previously capital-driven rally to short-circuit in the short term.

Innovative drug concept stocks weakened, with Boan Biological down over 4%. On March 18 and 19, Rongchang Bio’s A-shares repeatedly hit new highs. Huatai Pharma noted that this is the first new high among mainstream innovative drug stocks since the 2025 biotech bull market, signaling a clear industry bottom and a milestone event. The firm pointed out that recent market attention to key data from ASCO has surged. The NSCLC data from Kelun Botech and Kangfang presented at ASCO may further clarify that the next generation of cancer treatments will evolve into combinations of IO bispecific antibodies and ADCs, with Chinese assets expected to hold over half of the market share.

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(Edited by: Liu Chang)

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