Hong Kong’s equity markets experienced a broad-based selloff during the morning session, with all major indices—including the Hang Seng Index, Hang Seng TECH Index, and state-owned enterprise benchmarks—falling over 2%. The downturn was led by heavyweight technology stocks, with Meituan, BYD, SMIC, and Alibaba all dropping more than 2% amid renewed concerns about global growth and tightening liquidity conditions.
The innovative drug sector, a recent market standout, reversed course sharply. Kangfang Biological plunged over 11%, while Junshi Biologics and Fosun Pharma tumbled more than 7%. The selloff reflects investor caution after the sector’s strong year-to-date gains, compounded by reports of potential regulatory scrutiny on drug pricing policies. Analysts note the retreat may present buying opportunities for long-term investors, given the sector’s solid fundamentals.
Defying the broader downturn, new economy consumer stocks extended their rally. Pop Mart gained nearly 2%, while Mixue Group surged over 7% to a record high, underscoring resilient demand for affordable luxury and tea chain concepts. The divergence highlights investors’ preference for companies with proven domestic growth models and strong cash flows, even as macroeconomic uncertainties weigh on risk appetite elsewhere in the market.
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