SMIC(HK:00981) Ge Long Hui·2025-12-22 08:56Market Overview - The Hong Kong stock market indices collectively rose on December 22, with the Hang Seng Tech Index increasing by 0.87%, the Hang Seng Index by 0.43%, and the China Enterprises Index also by 0.43% [1][2]. Sector Performance - Large technology stocks generally saw slight increases, with notable gains in semiconductor and optical communication sectors. Leading stock SMIC rose over 8% [2][4]. - The luxury goods sector declined, while the biopharmaceutical sector showed weakness, with several stocks experiencing significant drops [2][8]. Notable Stock Movements - The gold and precious metals sector performed well, with spot gold reaching $4,400 per ounce, marking a nearly 68% increase year-to-date, and silver hitting $69 per ounce, up approximately 139% this year [5][6]. - Semiconductor stocks also saw gains, with SMIC and Huahong Semiconductor rising over 5%. Analysts from China Galaxy Securities highlighted the AI demand driving a recovery in the storage chip market [6][7]. New Consumption Trends - New consumption concept stocks strengthened, with companies like Mixue Group rising nearly 10% and others like Lao Pu Gold and Guoquan also showing significant gains [7][8]. Biopharmaceutical Sector Insights - The biopharmaceutical sector faced challenges, with stocks like Lai Kai Pharmaceutical dropping over 8%. Analysts noted a cyclical nature in the industry, with recent supportive policies for innovative drugs potentially leading to a new development cycle [8][9]. Capital Flow and Future Outlook - Southbound funds recorded a net inflow of HKD 3.125 billion, indicating positive capital movement into the Hong Kong market [9][11]. - Analysts from Huatai Securities anticipate that the upcoming year will see significant capital flow changes due to expected RMB appreciation and improvements in market conditions, particularly benefiting dividend-paying stocks in the Hong Kong market [11].