HK Stock Market Recap | Hong Kong stocks consolidate with reduced volume; auto shares buck the trend and rise strongly; DeepTech stock surges for two consecutive days, doubling in price

Today (April 13), the Hong Kong stock market saw a consolidation with reduced trading volume.

At the close, the Hang Seng Index stood at 25,660.85 points, down 232.69 points or 0.90%. Today, the Hong Kong stock market saw a significant reduction in trading volume with a total turnover of only HKD 207.9 billion, a decrease of HKD 40 billion compared to last Friday.

The Hang Seng Tech Index closed at 4,822.01 points, down 38.25 points or 0.79%.

In terms of market highlights, auto stocks rose against the trend. Nio-SW (HK09866) surged over 7%, while BYD (HK01211) rose more than 4%.

On the news front, data released by the China Association of Automobile Manufacturers showed that in the first quarter, vehicle exports reached 2.226 million units, a year-on-year increase of 56.7%. Among them, new energy vehicle exports amounted to 954,000 units, up 1.2 times year-on-year, while traditional fuel vehicle exports totaled 1.271 million units, an increase of 29.9% year-on-year. The Passenger Car Association noted that in March, both fuel vehicle and new energy vehicle exports from manufacturers hit record highs for any month in history.

DeepTech (HK01384) surged for two consecutive days, with a cumulative increase of 136.8% over the two trading days. Last Friday, DeepTech soared over 48%, and today it surged over 59%.

CITIC Securities issued a research report on DeepTech, stating that as a leader in enterprise-level data intelligence and large model applications, the company drives the professional transformation of enterprise AI employees through a dual-wheel drive of 'data governance + model capability'. Amid the wave of AI transitioning from general scenarios to vertical fields, the company holds a leading position and is expected to turn profitable next year.

Elsewhere, tech stocks fell more than they rose. Tencent fell over 2%, Kuaishou, Alibaba, NetEase, Meituan, and Baidu declined over 1%, while Bilibili rose over 1%. Airline stocks generally fell, with China Eastern Airlines dropping over 4%. The innovative drug concept weakened, with Hengrui Pharma falling over 4%.

In terms of capital flow, Southbound funds made small-scale net purchases today. By the close, Southbound funds had cumulatively net purchased about HKD 2.2 billion worth of Hong Kong stocks.

Outlook for the Future

Guangfa Securities is optimistic about the rebound opportunities in the second quarter, especially from April to May (not a reversal trend), attributing this to three types of negative factors being fully digested: First, annual reports have been fully disclosed, with uncertainties regarding performance, buybacks, and capital expenditures resolved; Second, the peak of March's share lock-up period has ended, with the scale of lock-ups declining in the second quarter, providing an opportunity for sentiment-driven clearance of negatives; Third, overseas liquidity pressure has eased, and expectations of Trump’s visit to China may boost preferences. Rate cut expectations have dropped to zero, and once geopolitical and inflation disturbances are digested, there is room for valuation recovery.

China Galaxy Securities believes that the main driving logic of the market may shift from reliance on loose liquidity to earnings improvement, with fundamentals gaining more weight. The core strategy for the Hong Kong stock market can transition from conservative to active positioning, allowing for moderate aggressiveness. However, it must be emphasized that crude oil prices remain the anchor for market sentiment pricing.

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