Sou Hu Cai Jing·2025-12-11 08:51Market Overview - The Hong Kong stock market opened higher due to the Federal Reserve's interest rate cut but ultimately closed lower, with the Hang Seng Index finishing at 25,530.51 points, down 10.27 points or 0.04% [1] - The Hang Seng Tech Index closed at 5,534.59 points, down 46.51 points or 0.83% [3] - The total trading volume for the day was 1,825 million Hong Kong dollars, indicating a decrease in trading activity [1] Company Focus - ZTE Corporation (HK00763) experienced a significant drop, with its stock price falling over 13% by the end of the trading day, and its A-shares (SZ000063) also hit the daily limit down [4] - ZTE announced it is in communication with the U.S. Department of Justice regarding compliance investigations related to the U.S. Foreign Corrupt Practices Act, asserting its commitment to compliance and normal business operations [6] Sector Performance - Hong Kong banking stocks showed overall strength, with HSBC Holdings (HK00005) rising over 3% to reach a historical high of 115.3 Hong Kong dollars, ultimately closing up 2.06%. Other banks like Standard Chartered, Bank of East Asia, Bank of China Hong Kong, and Hang Seng Bank also saw gains [6] Capital Flows - Southbound capital recorded a net inflow of over 700 million Hong Kong dollars into Hong Kong stocks by the end of the trading day [8] Market Outlook - According to CMB International, the Hong Kong stock market is expected to transition from valuation-driven to earnings growth-driven, with a projected earnings growth rate of 6% to 10% for the Hang Seng Index, suggesting an upward potential of 10% to 15% for the index next year [10] - The outlook for the Hong Kong market is supported by favorable internal policies and external monetary easing from major economies, with expectations for significant revenue and profit growth in 2026 following a bottoming out in 2025 [10]