Today, the three major indices of Hong Kong stocks opened high and went low, showing weak markets throughout the day, and market trading continued to shrink.

By the close, the Hang Seng Index and China Index fell 0.35% and 0.4% respectively. The Hang Seng Technology Index fell 1.3% in the afternoon and had the weakest performance, and finally closed down 0.99%.

On the market, the overall performance of large technology stocks was weak. NetEase fell nearly 4%, while Kuaishou, Meituan, and Tencent fell more than 1%.

The “price war” hit the heavy truck market. Some models fell by more than 0.3 million yuan, and the decline in heavy truck stocks increased in the afternoon; wind power stocks fell significantly, with Dongfang Electric's emissions plummeting more than 13%; film and television entertainment stocks fell sharply, and performance fell below expectations. Tencent Music plummeted by more than 18%; biomedical stocks, water stocks, home appliance stocks, mobile game stocks, shipping stocks, domestic housing stocks, sporting goods stocks, etc. fell one after another.

On the other hand, pig prices began to rise rapidly. Pork concept stocks bucked the trend. Mid-term operating profit surged 78.4%, Wanzhou International surged more than 8%, telecom stocks and 5G concept stocks generally rose, and the three major operators rose in unison.

Let's take a look specifically:

The film and television entertainment sector made a sharp correction. Tencent Music-SW fell more than 18%, compared to Gao Group by more than 8%, Lehua Entertainment by more than 6%, Litian Pictures, Ningmeng Pictures, and Starry Sky Chinese by more than 3%, and Maoyan Entertainment by more than 2%.

According to the news, the market generally believes that Tencent Music's revenue performance falls short of many investment expectations, and that the company's music subscription revenue growth guidelines for the second half of the year and next year fall short of expectations.

The pharmaceutical outsourcing concept plummeted, with Tiger Pharmaceuticals falling more than 7%, Pharmaceutical Kangde, and Kanglong Chemical falling by more than 4%, and Kingsley Biotech, Zhaoyan Pharmaceutical, and Gloria Ying falling more than 3%.

Gaming stocks are weakening. Zhongxu will fall more than 5% in the future, Xindong will drop more than 4%, NetEase - S will fall by nearly 4%, and Liberal Arts Interactive and Zulong Entertainment will fall by more than 2%.

The heavy machinery sector declined, with Zhonglian Heavy Industries, China Longgong, and First Tractor Co., Ltd. falling more than 3%, and Hongxin Construction and Development falling more than 1%.

Power stocks continued to turn green. Dongfang Electric fell more than 13%, Ruifeng New Energy fell more than 5%, GCL Technology fell more than 3%, Datang New Energy, Longyuan Electric, and Goldwind Technology fell more than 2%, and Shanghai Electric fell more than 1%.

Pork stocks led the way, with Wanzhou International up more than 8%, Wison International up nearly 7%, and Yurun Foods up more than 2%.

According to the news, Wanzhou International's revenue for the first half of this year fell 6.3% to 12.293 billion US dollars; operating profit rose sharply by 78.4% to 1.14 billion US dollars, mainly due to the pork business turning a loss into a profit.

Telecom stocks surged; China Telecom rose more than 2%, and China Mobile and Hutchison Hong Kong rose more than 1%.

The trend of gaming stocks diverged. Sands China and Macau International Development rose more than 1%, MGM China rose 0.9%, and Wynn Macau fell more than 1%.

Chip stocks strengthened; Xinzhi Holdings rose more than 4%, ASMPT rose more than 2%, Hongguang Semiconductor rose more than 1%, and SMIC rose slightly.

Today, Southbound Capital had a net sale of HK$1.042 billion, of which Hong Kong Stock Connect (Shanghai) had a net sale of HK$0.895 billion and Hong Kong Stock Connect (Shenzhen) had a net sale of HK$0.147 billion.

Looking ahead, Galaxy Securities believes that in the short term, peripheral market fluctuations may affect the sentiment of the Hong Kong stock market. The August Hong Kong stock interim report is in a centralized disclosure period, and the catalytic effects brought about by favorable performance are worth paying attention to. As the Federal Reserve approaches the pace of interest rate cuts, focus on the technology sector that is benefiting from interest rate cuts, especially the segments that are expected to improve on both the denominator side and the molecular side, which are expected to benefit more, specifically sectors such as the Internet leader, consumer electronics, and innovative pharmaceuticals. In the medium to long term, the fundamentals of Hong Kong stocks are more dependent on the domestic economy, and attention is being paid to the positive signs of domestic policy. The high dividend strategy of Hong Kong stocks is still attractive, focusing on Hong Kong stock state-owned enterprises.