According to the Smart Finance app, Hong Kong stocks rose sharply in early trading, then fell back and then climbed again. The Hang Seng Index and H-share index successfully turned red, and their gains expanded in the afternoon. Among the three major indexes, only the Hang Seng Tech Index fluctuated below the waterline all day. At the close, the Hang Seng Index rose 0.22% or 39 points to 17778.41 points, with a full-day turnover of HKD 87.536 billion; The Hang Seng China Enterprises Index rose 0.15% to 6306.8 points; The Hang Seng Tech Index fell 0.76% to 3613.13 points.

CITIC Securities pointed out that looking forward to the second half of the year, the bank believes that the sustainability of the market is still expected, and the upward drive is expected to gradually shift. The expectation of China's macroeconomic recovery is expected to become the dominant factor in the beta market. In terms of overseas liquidity, the bank is happy to see the Fed cut interest rates in September, and the improvement of the overseas interest rate environment will drive the repair of the logical end of the Hong Kong stock denominator. However, even if the Fed's interest rate cut process is lower than expected, the negative impact on the Hong Kong stock market may still be limited.

Blue chip performance

Nongfu Spring (09633) leads the blue chips. At the close, it rose by 6.48% to HKD 35.35, with a turnover of HKD 0.919 billion, contributing 7.01 points to the Hang Seng Index. The Hong Kong Consumer Council clarified the previous bottled water test report today and apologized to Nongfu Spring. It stated that after in-depth research, it was found that the test was misunderstood due to sample classification discrepancies, and the sample was reclassified as an independent category of "natural drinking water", which was rated again. The overall performance of the sample has been upgraded from 4.5 stars to 5 stars.

On other blue chips, China Hongqiao (01378) rose by 3.55% to HKD 10.5, contributing 1.64 points to the Hang Seng Index; CKI Holdings (01038) rose by 2.92% to HKD 51.05, contributing 1.45 points to the Hang Seng Index; Sands China (01928) fell by 1.96% to HKD 16.02, dragging down the Hang Seng Index by 1.46 points; Sunny Optical Technology (02382) fell by 1.78% to HKD 49.65, dragging down the Hang Seng Index by 1.04 points.

Hot sectors

On the market, large technology stocks are generally under pressure, with Tencent, Alibaba and others all falling. Travel and sightseeing, Macau casino stocks, Apple concept stocks, and auto stocks are all trending down. On the other hand, most of the China Railway signal concept stocks have rebounded. In the first half of the year, investment in the national railway set a new record, with high-speed rail infrastructure stocks performing strongly, and telecommunications stocks, petroleum stocks and other active stocks. Short-term gold spot prices rose, and gold stocks bottomed out and rebounded. Home appliance stocks, wind power stocks, photovoltaic stocks, and gas stocks generally rose.

1. Some China Railway signal concept stocks rebounded. At the close, AVIC Aircraft (02357) rose by 5.08% to HKD 3.72; China Railway Signal & Communication Corporation (03969) rose by 4.29% to HKD 3.4; China Telecom (00728) rose by 1.94% to HKD 4.74; CNOOC (00883) rose by 1.89% to HKD 21.55.

Sealand Securities pointed out that the valuations of central SOEs have the foundation and possibility of sustainable growth. Under the background of deepening reforms, the profitability resilience of SOEs is relatively strong, and the financing channels of high-quality assets continue to expand. They have played a key role in stabilizing the capital markets and fulfilled their responsibilities as the ballast stone of economic development. At the same time, the CSRC promoted the reform of SOE dividends, and the willingness and ability of SOEs to dividends have significantly improved, highlighting the advantages of SOEs. The profit quality of undervalued SOEs is steadily improving, and the main line of undervalued central SOEs is gradually being realized.

2. Gold stocks bottomed out and rebounded. At the close, Lingbao Gold (03330) rose by 3.61% to HKD 3.73; Zhaojin Mining (01818) rose by 1.91% to HKD 16.02; Shandong Gold (01787) rose by 1.23% to HKD 18.04; China Gold International (02099) rose by 1.07% to HKD 52.

Intraday short-term gains in spot gold. It re-rose above $2470/oz, up more than $14 intraday. Earlier, after the gold price hit a new historical high of $2483.60, it saw profit-taking and ultimately closed down 0.41%. Guo Mao Futures believes that in the short term, with the interest rate cut expectations approaching 100% in September and a certain upward trend in precious metal prices after hitting a historical high, the price of precious metals may continue to be strong in the short term. Previously, Huafu Securities also pointed out that the short-term safe-haven sentiment brought about by the US political election and the worsening US fiscal deficit have raised concerns about the credit of the US dollar, and the upward trend of gold has not ended.

3. Photovoltaic stocks have generally rebounded. As of the close, Fuyao Glass (06865) rose 3.02% to HKD 11.6, Fuyao Glass (03606) rose 2.3% to HKD 46.75, Xinyi Solar (00968) rose 1.62% to HKD 3.77, and Xinte Energy (01799) rose 0.26% to HKD 7.86.

The National Energy Administration requires reasonable guidance on upstream photovoltaic capacity construction and release to avoid repeated construction of low-end capacity. Central China Securities pointed out that from the mid-term performance forecast that has been disclosed, the interim report performance of various links in the photovoltaic industry will either decline significantly or have a universal loss. Events such as layoffs, shutdowns, and stoppages have occurred in the photovoltaic industry, and the industry is undergoing capacity reduction. At present, photovoltaic product prices have fallen below cost, and each link in the main industrial chain is facing significant profitability pressures, which will accelerate the survival of the fittest in the industry. The valuation of the photovoltaic sector is at a historical low. The short-term secondary market stock prices of photovoltaic individual stocks have a trend of oversold rebound, but a reversal of the trend still requires fundamental support.

Popular fluctuating stocks

1. Zhixing Automotive Technology (01274) rose sharply. As of the close, it rose 18.75% to HKD 31.35.

In response to yesterday's abnormal price fluctuations, Zhixing Automotive Technology issued an announcement stating that after reasonable inquiries, it confirmed that it had no knowledge of any reason for the unusual fluctuations in the stock price and trading volume. As of the date of this announcement, the company's operations are normal, and the board of directors has full confidence in the group's future development prospects.

2. Yanjiowo (01497) reaches a new high, as of the close, it rose 11.48% to HKD 12.82.

Yanjiowo announced its performance, expecting the first half of the year's revenue to be about RMB 1.045-1.09 billion, a year-on-year increase of about 10% to 15%; the expected net profit is about RMB 50 million to RMB 60 million, a decrease of about 40% to 50% compared with the same period in 2023.

3. Xijiao International Holdings (01765) surged in volume, up 9.69% to HKD 0.215 at the close.

Xijiao International announced that in order to avoid the repeated construction of low-end capacity, it requires reasonable guidance on upstream photovoltaic capacity construction and release. Central China Securities pointed out that from the mid-term performance forecast that has been disclosed, the interim report performance of various links in the photovoltaic industry will either decline significantly or have a universal loss. Events such as layoffs, shutdowns, and stoppages have occurred in the photovoltaic industry, and the industry is undergoing capacity reduction. At present, photovoltaic product prices have fallen below cost, and each link in the main industrial chain is facing significant profitability pressures, which will accelerate the survival of the fittest in the industry. The valuation of the photovoltaic sector is at a historical low. The short-term secondary market stock prices of photovoltaic individual stocks have a trend of oversold rebound, but a reversal of the trend still requires fundamental support.

4. Times Electric (03898) announced an earnings surprise and rose 2.88% to HKD 28.55 at the close.

Times Electric announced that it expects to achieve a net profit attributable to the owner of the parent company of approximately RMB 1.507 billion in the first half of 2024, a year-on-year increase of 30.56%. Income growth is affected by the positive factors of railway investment growth, passenger flow recovery, etc., and the volume of acceptance and delivery of rail transit products has increased year-on-year.