Hong Kong's three major indices accelerated their declines in the afternoon session, with the Hang Seng Index barely holding the 24,000 mark as investors assessed the fallout from the leadership crisis at Nvidia.

At the close, the Hang Seng Index fell 1.26%, or 307.37 points, to 24,008.55, with total daily turnover of HK$202.652 billion; the Hang Seng China Enterprises Index dropped 1.40% to 8,056.76; and the Hang Seng Tech Index declined 2.36% to 3,931.93.

Huatai Securities noted that Hong Kong stock earnings expectations have been revised down by 2.4% over the past four weeks, the probability of a Federal Reserve rate hike in December remains around 75%, and a peak in share lock-up expirations is expected in December. The brokerage advised against continuing to chase high-beta companies, suggesting the Hong Kong market may enter an alpha-driven phase. On the technology front, hardware names within Hong Kong stocks are diverging internally, with domestic semiconductors rebounding but southbound funds still reducing holdings, meaning the window for trend-following long positions still needs to wait.

Blue-Chip Performance

Alibaba-W (09988) led blue-chip declines. At the close, it fell 6.76% to HK$93.8, with turnover of HK$18.735 billion. Alibaba formally proposed spinning off T-Head for a Hong Kong listing, aiming to raise the proportion of self-used computing power contribution from over 10% to 40% to 50%, with an estimated shipment of approximately 700,000 GPUs by 2027. Bank of America Securities viewed the spin-off as a positive catalyst but stressed that strong revenue growth, regulatory progress, and transaction terms would be needed before investors would assign a standalone valuation.

Among other blue chips, Hua Hong Semiconductor (01347) rose 2.46% to HK$77; CNOOC (00883) gained 0.53% to HK$22.84; China Molybdenum (03993) fell 4.27% to HK$12.11; and Tencent Holdings (00700) dropped 2.64% to HK$398.8.

Hot Sectors

On the trading board, capital clearly rotated out of computing hardware into pharmaceutical and defensive names. Domestic GPU stocks bucked the trend, with Iluvatar CoreX rising 8.85% and Biren Tech gaining 5.64%, as T-Head's spin-off filing provided a revaluation anchor for domestic computing power targets. The optical communications chain gave back gains in the afternoon, with Yangtze Optical Fibre and Cable falling 6.24%. Gold stocks declined as gold prices lost the $4,000 level, with Shandong Gold dropping 5.46%, after US October inflation data came in above expectations and raised the probability of a December rate hike. Some pharmaceutical stocks advanced, with Zai Lab up nearly 3% and WuXi AppTec rising 2.44%.

Domestic GPU Pair Defies Market Downtrend

At the close, Iluvatar CoreX (09903) rose 8.85% to HK$78.7, while Biren Tech (06082) gained 5.64% to HK$22.48. Reports that Nvidia's board plans to remove CEO Jensen Huang continued to unsettle the market, with reports saying the board could meet as early as Wednesday local time to decide his fate. Analysts noted that if Nvidia falls into a management vacuum, its product delivery pace could be affected, which is precisely a window for domestic computing power substitution expectations to accelerate. Additionally, Alibaba announced it has submitted an application to the Hong Kong Stock Exchange for the spin-off and independent listing of T-Head, and the filing is expected to provide a revaluation anchor for domestic computing power targets.

Gold Stocks Fall Broadly

At the close, Zijin Gold International (02259) fell 10.35% to HK$126.5; Shandong Gold (01787) dropped 5.46% to HK$17.85; and Zijin Mining (02899) declined 3.46% to HK$27.94. After US October inflation data was released, the probability of a 50 basis point rate hike by the Federal Reserve next month rose sharply. The CME FedWatch Tool showed traders pricing in a 100% probability of a December rate hike, with a 12.7% chance of a 50 basis point increase. Fed Governor Waller said that under these circumstances, the December policy meeting should consider a 50 basis point hike. International gold prices once again fell below the $4,000 mark. CITIC Futures noted that gold is expected to remain range-bound in the short term, and a sustained rebound still requires easing rate hike expectations. Investors should watch upcoming inflation data, Fed commentary, and US-Iran negotiation progress.

MSCI Announces Index Adjustments, Related Stocks Under Pressure

At the close, Far East Horizon (03360) fell 6.98% to HK$5.265; Giant Biogene (02367) dropped 3.94% to HK$20.46; C&D International Group (01908) declined 3.47% to HK$13.34; and China National Building Material (03323) fell 3.18% to HK$2.74. On November 12 Beijing time, international index compiler MSCI announced the results of its November 2026 semi-annual index review, with all changes effective after the close on November 30, 2026. The MSCI China Index removed 38 stocks including C&D International Group, China National Building Material, Far East Horizon, and Ganfeng Lithium. Additionally, the MSCI Hong Kong Index removed Sands China.

Some Pharmaceutical Stocks Rise

At the close, Zai Lab (09688) rose 2.74% to HK$21.02; WuXi AppTec (02359) gained 2.44% to HK$201.4; Hansoh Pharmaceutical (03692) rose 1.69% to HK$34.94; and BeiGene (06160) added 1.59% to HK$255.8. Industrial Securities noted that "innovation plus internationalization" remains the core theme for pharmaceuticals in 2026, with third-quarter results confirming rapid growth in both innovative drug profits and the industry chain. In Q3 2026, the A-share innovative drug index saw net profit attributable to shareholders grow 51.70% year-on-year, while the CRO index saw revenue and net profit attributable to shareholders grow 33.58% and 85.87%, respectively. Kaiyuan Securities stated that global biopharmaceutical investment and financing are surging, AI drug discovery is gradually bringing incremental growth, and blockbuster drugs such as weight-loss treatments are driving volume. Multiple companies in the sector are seeing order acceleration, with earnings growth expected to accelerate in 2027, offering abundant investment opportunities.

Notable Stock Movers

Amicro (02065) surged on its trading debut. At the close, it rose 38.18% to HK$13.68. Amicro listed on the Hong Kong Stock Exchange main board today at an issue price of HK$9.9, raising approximately HK$710 million. According to Frost & Sullivan, based on 2025 revenue, the company is the third-largest intelligent mobile robot solution provider with a market share of approximately 4.2%, and the largest single-modality robot solution provider in China with a market share of 2.2%.

Xinhehua (02206) continued to climb. At the close, it rose 26.09% to HK$87. Xinhehua is a core supplier of large-scale traditional Chinese medicine decoction pieces in China, with two major product categories—ordinary TCM decoction pieces and toxic decoction pieces—totaling over 770 types and more than 4,900 products. It has over 1,000 hospitals, medical institutions, and large chain pharmacies as customers in China. Based on 2025 TCM decoction piece product sales revenue, the company ranks second in the industry nationwide.

Transsion Holdings (02636) was included in the Stock Connect. At the close, it rose 22.47% to HK$46.44. Transsion Holdings became a Stock Connect eligible stock starting today, allowing southbound funds to invest directly. Caitong Securities noted in a research report that the company's core markets focus on emerging markets such as Africa and South Asia. The year-end Christmas holiday drives a traditional consumption window in the fourth quarter, with channels typically stocking up in advance and accompanying holiday promotions to unleash end demand.

Link REIT (00823) reported a slight increase in interim distribution. At the close, it rose 3.23% to HK$41.5. Link REIT announced its interim results for the period ended September this year at midday, with total distributable income increasing 0.4% year-on-year to HK$3.295 billion, and distribution per unit of 127.25 Hong Kong cents, up nearly 0.3% year-on-year. Interim revenue was HK$6.909 billion, down 1.6% year-on-year, mainly due to negative rent adjustment rates on Hong Kong lease renewals, reflecting lagging recovery in essential consumer goods retail and the continued evolution of online consumption patterns.

Baige Online (02672) remained lower after denying rumors. At the close, it fell 10.61% to HK$36.56. Baige Online crashed in late trading yesterday, closing down 72.08%. That evening, it issued a clarification announcement stating that certain entities related to unauthorized financing platforms had used the company's name, brand logo, and stock code without authorization, and that the company, its controlling shareholders, and members have no equity, management, business cooperation, or financial dealings with the aforementioned platforms. The company has reported the matter to public security authorities and local financial regulators in Xiamen and Shenzhen.

CK Hutchison (00001) shelved the spin-off of Watsons. At the close, it fell 3.81% to HK$69.35. According to reports, CK Hutchison has suspended plans to spin off Watsons for a dual listing in London and Hong Kong due to current market conditions, and may revisit the plan next year if conditions improve. In addition to market sentiment, weak mainland consumer demand has also put pressure on the listing plan. Watsons had originally planned to list in both locations in autumn this year, aiming to raise approximately $2 billion at a valuation of about $30 billion.