Hong Kong Stock Market Close: Three Major Indices Fall Again! Hang Seng Index Down Nearly 1%, Gold and Defense Stocks Decline

On March 13, the three major Hong Kong stock indices declined again. The Hang Seng Index briefly fell to 1.15% in the late trading session, ultimately closing down 0.98%. The China Enterprises Index and the Hang Seng Tech Index fell 0.32% and 0.99%, respectively. Notably, despite the market downturn, southbound funds net bought over HKD 18 billion worth of Hong Kong stocks for bottom fishing.

In terms of market performance, inflation concerns impacted the Federal Reserve’s rate cut expectations. Gold stocks declined again, with Chifeng Gold dropping nearly 8%. The Middle East situation caused a surge in jet fuel prices, leading to continuous declines in airline stocks. Military, shipping, semiconductor, and Apple-related stocks also fell. Conversely, the advertising and promotion sector continued to rise, with Mak Kee Kiu Chung up over 37%, and the fertilizer sector saw gains, with Jiu Yuan Group up over 51%. The cryptocurrency sector rebounded, with China Properties Investment rising over 10%.

Specifically:

Most large tech stocks were mostly up, with Baidu rising 1.5%, and Alibaba, Tencent, JD.com, and Xiaomi seeing modest increases. Li Auto fell over 3%, Kuaishou, Ctrip, Bilibili, and Midea Group declined over 1%, and Meituan dropped nearly 1%.

The advertising and promotion sector continued to rise, with Mak Kee Kiu Chung up over 37%, Tianping Daohé up over 16%, and Juhui Technology nearly 13%, and LQ Culture up over 12%.

On the news front, Mak Kee Kiu Chung and offeror Xiaojun Legend Limited jointly announced that the offeror completed the purchase of 175.5 million shares from Blackpaper Limited on March 12, 2026, representing 65% of the company’s total issued share capital, at a total cash cost of HKD 122.2 million (about HKD 0.6963 per share).

Cryptocurrency concept stocks rose, with China Properties Investment up over 10%, OSL Group nearly 7%, Xinhuo Technology Holdings nearly 5%, and OKLink and Boyaa Interactive up over 4%.

According to recent reports, on February 25, the Financial Secretary of Hong Kong, Paul Chan, announced that Hong Kong has implemented a licensing regime for fiat-backed stablecoin issuers, with the first licenses expected to be issued in March. The government and financial regulators will continue to promote licensed issuers to explore more application scenarios within compliance and risk control. Rumors suggest that the first stablecoin licenses may be granted to HSBC, Standard Chartered, and local virtual asset trading platform OS Group.

The fertilizer sector rose, with Jiu Yuan Group up over 51%, Dacheng Biochemical Technology over 12%, Fu Yi International Holdings over 8%, and Dongguang Chemical and Teda Biological over 3%.

In related news, a Citi report revealed a severely underestimated impact chain: the Middle East controls 36% of global urea and 29% of ammonia exports, with the Strait blockade pushing the fertilizer supply chain toward breaking point. Fertilizer costs account for over 50% of variable grain production costs. The planting seasons in Brazil and India start next month. Citi has raised target prices for corn, wheat, and soybeans, with significant upside potential in a bull market, and funds have shifted fully to long positions.

Gold stocks declined, with Chifeng Gold and Zijin Gold International down over 7%, Jinhai Gold up over 6%, and Zhubao Gold and others down over 5%.

Amid the complex market environment, institutions generally believe that the timing and magnitude of the Federal Reserve’s rate cuts remain key uncertainties. Fluctuations in crude oil prices and recurring geopolitical conflicts will continue to dominate short-term trends. Gold is unlikely to break out of a trend, with high-level oscillations remaining the main tone.

The airline sector continued to decline, with China Aircraft Leasing down over 6%, Cathay Pacific down over 5%, and Air China and China Southern Airlines down over 4%.

In news, Swire (00019.HK) announced plans to sell 2.52% of Cathay Pacific (00293.HK) shares through a placement agent, totaling 153 million shares at HKD 11.74 per share.

The shipping and port sectors generally declined, with Yuanhang Port down over 10%, OOCL down over 7%, and Blue River Holdings and COSCO Shipping Holdings down over 3%.

On the news front, OOCL announced its 2025 performance, with revenue of approximately USD 9.7225 billion, a 9.15% decrease year-over-year; net profit attributable to shareholders of about USD 1.513 billion, down 41.28%; earnings per share of USD 2.29, and a proposed final dividend of USD 0.42 per common share.

Today, southbound funds net bought HKD 18.449 billion, with the Shanghai-Hong Kong Stock Connect net buying HKD 11.813 billion and the Shenzhen-Hong Kong Stock Connect net buying HKD 6.636 billion.

Looking ahead, Cao Liulong, Chief Strategist at Western Securities, believes that 2026 may usher in a “super cycle” for oil prices, benefiting the refining and chemical sectors significantly. He notes that China’s strong export capacity, stable cash flow in the refining industry, and low capital expenditure (CAPEX) could present good value investment opportunities. He recommends allocating to oil and chemicals in the first half of the year and shifting to Baijiu and Hang Seng Tech in the second half.