CREALIGHTS

Higuan Xinzheng plunged on its Hong Kong debut, closing at HK$63.600, down 21.5% from the previous close of HK$81.000. The day saw a one-sided sell-off, with the opening price of HK$73.600 marking the session high, while the low touched HK$63.000, near its 52-week trough. The plunge is primarily attributed to the market's continued digestion of the company's previously announced HK$2.35 billion rights issue, which has triggered multiple sharp declines since its disclosure. At current levels, the stock is 71% off its 52-week high of HK$219.600 and trades well below its 20-day MA (HK$130.178) and 60-day MA (HK$131.836), indicating deeply oversold conditions. However, the price-to-book ratio remains elevated at 8.98x, while the negative P/E reflects ongoing profitability challenges.

1191.HK staged a sharp V-shaped recovery today, hitting a fresh 52-week low of 71.45 HKD in the morning session before a strong afternoon rebound to close at 82.95 HKD, down 2.64% from the previous close of 85.2 HKD. The intraday swing was extreme at 16.2%, driven by persistent sector rotation and lingering overhang from the recently announced 2.35 billion HKD rights issue. The stock has now plunged 64% from its 52-week high of 219.6 HKD hit on July 6, trading far below its 20-day moving average of 135.33 HKD, with a YTD decline of 52.12%. Despite the deep V-shaped bounce suggesting some bottom-fishing, the stock remains in a weak consolidation phase.

Higuang Chipsoar (1191.HK) opened higher at HK$96.9 but reversed sharply in early morning trading, sliding to HK$92.5 by 09:35 BJ, down approximately 5.3% from the prior close. The stock's rapid decline extends a prolonged selloff triggered by a HK$2.35 billion placement that raised dilution concerns. From its 52-week high of HK$219.6 on July 6, the stock has fallen 57.9%, and it trades well below its 20-day and 60-day moving averages of HK$138.5, with a YTD loss of 43.9%. While the broader AI chip rally recently provided intermittent support, the placement overhang continues to weigh on sentiment. The stock is now only 7.4% above its 52-week low of HK$86.15, suggesting limited downside risk from current levels.

Higuang Chipsoar fell 1.24% to close at HK$95.50, primarily weighed by lingering dilution concerns from its recent HK$2.35 billion placement. The stock surged in the morning session to an intraday high of HK$101.90 before rapidly plunging to a low of HK$94.30, then traded sideways in the HK$95-98 range during the afternoon, settling near the session low. The placement has pressured prices from around HK$150 over the past week, with the stock now 56.51% below its 52-week high of HK$219.60 and significantly below its 20-day moving average of HK$140.90, sitting just 10.85% above the 52-week low of HK$86.15. However, an early rally of over 5% fueled by a broader AI chip sector rebound suggests persistent market divergence.

Higuang Chipsoar experienced a spike-and-retreat session today, surging to an intraday high of HK$110.3 in the morning driven by a rally in AI chip stocks, but fell sharply in the afternoon to close at HK$95.0, down 1.7% from the previous close of HK$96.65, with a full-day range of nearly 15%. The company's recent HK$2.35 billion placement has fueled dilution concerns, weighing on the stock. Despite the early bounce, profit-taking emerged in the afternoon. The stock is now 56.7% below its 52-week high of HK$219.6 and well below its 20-day moving average of HK$143.5, with a YTD decline of 42.4%. However, it remains 10.3% above the 52-week low of HK$86.15, suggesting some support at lower levels.