The Zhitong Finance App learned that the three major indices of Hong Kong stocks stopped falling and rebounded today, and their gains expanded further in the afternoon. The Hengke Index had the best performance, rising more than 2% at the end of the session. By the close, the Hang Seng Index rose 1.44% or 249.99 points to 17,641 points, with a full-day turnover of HK$97.408 billion; the Hang Seng State-owned Enterprises Index rose 1.34% to 6224.24 points; and the Hang Seng Technology Index rose 2.16% to 3508.61 points.

Galaxy Securities pointed out that the performance of Internet companies boosted market confidence. As the Federal Reserve approaches the pace of interest rate cuts, focus on the technology sector benefiting from expectations of interest rate cuts, especially industry segments that are expected to improve on both the denominator side and the numerator side, which are expected to benefit more. 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.

Blue chip stock performance

Xiaomi Group-W (01810) led the blue chip increase. At the close, it rose 9.02% to HK$19.1, with a turnover of HK$8.19 billion, contributing 44.38 points to the Hang Seng Index. Citigroup Research reports that Xiaomi's second-quarter results were better than expected. Management emphasized that the share of the company's smartphones in various regions continues to grow, and growth in IoT shipments, average prices and profits will be a long-term trend.

In terms of other blue-chip stocks, AIA (01299) rose 5.93% to HK$54.45, contributing 55.51 points; Orient Overseas International (00316) rose 5.61% to HK$114.8, contributing 1.27 points to the Hang Seng Index; Xinyi Solar (00968) fell 2.83% to HK$3.09, dragging down 0.69 points; Sunyu Optical Technology (02382) fell 1.52% to HK$48.5, dragging down the Hang Seng Index by 0.87 points.

In terms of popular sectors

On the market, most large technology stocks flourished. JD rose more than 3%, while NetEase and Ali both rose more than 2%. The home appliance trade-in policy continued to be implemented, and home appliance stocks generally rose; in July, the electricity consumption of the whole society increased 5.7% year on year, and electricity stocks rose in the afternoon; NEV stocks, insurance stocks, and shipping stocks had the highest gains. On the other side, downward pressure on volume and price in the property market continues, and domestic housing stocks continue to weaken; CRO concept stocks, vocational education stocks, pharmaceutical stocks, beer stocks, etc. have fallen one after another.

1. Domestic housing stocks continued to weaken. At the close, Zhongliang Holdings (02772) fell 3.03% to HK$0.096; Vanke Enterprise (02202) fell 2.84% to HK$3.76; R&F Properties (02777) fell 2.6% to HK$0.75; and Yuexiu Properties (00123) fell 1.9% to HK$4.12.

Recently, Hong Kong stock listed housing companies have successively disclosed their performance forecasts for the first half of the year, and most of them are facing a situation of loss or expansion of losses. Specifically, Zhengrong Real Estate expects the parent company's owners to account for losses between 2.2 billion yuan and 2.4 billion yuan in the first half of 2023; Zhongliang Holdings changed from profit to loss of more than 1.5 billion yuan year-on-year in the first half of 2023; Sunac China, housing companies such as Baolong Real Estate and Hongyang Real Estate issued profit warnings one after another.

Furthermore, Caixin Securities pointed out that due to the concentrated release of early demand and the impact of factors such as hot weather since August, demand for home purchases has recently declined seasonally. Sales in the commercial housing market continued to weaken last week (8.12-8.18). Commercial housing transaction area in 30 large and medium-sized cities decreased by 3.74% month-on-month and 29.44% year-on-year.

2. CRO concept stocks had the highest declines. At the close, Tiger Pharmaceuticals (03347) fell 5.14% to HK$28.6; Kanglong Chemical (03759) fell 3.74% to HK$8.24; Pharmaceuticals Kangde (02359) fell 1.41% to HK$31.55; and Gloria Ying (06821) fell 1.13% to HK$39.55.

The Xiangcai Securities Research Report pointed out that it is currently in the intensive disclosure period of semi-annual reports. Judging from the disclosed annual reports, CRO companies are generally pressured by the decline in investment and financing in the pharmaceutical industry, but some CRO companies are optimistic about the improvement in the pharmaceutical investment and financing situation. According to the Pharmaceutical Rubik's annual report, there were 412 financing incidents in the global primary market in the innovative drug sector in the first half of 2024, a year-on-year decrease of 12.5%; in terms of financing amount, the total amount of global financing was 15.161 billion US dollars, up 15.3% year on year. Overseas Investment in innovative medicines has gradually shown an upward trend.

3. Home appliance stocks generally rose. At the close, TCL Electronics (01070) rose 4.93% to HK$4.68; Haier Smart Home (06690) rose 3.49% to HK$23.7; Skyworth Group (00751) rose 1.44% to HK$2.81; and Hisense Home Appliances (00921) rose 0.82% to HK$19.72.

Following the notice issued by the National Development and Reform Commission and the Ministry of Finance on July 25 “Certain Measures to Strengthen Support for Large-scale Equipment Renewal and Consumer Goods Trade-in”, all parts of the country have gradually begun to implement these policies. According to announcements from provincial departments of commerce, Hubei Province has introduced implementation rules for consumer goods trade-in (draft for comments), Qinghai Province has issued relevant notices, Henan Province has begun to select consumer goods trade-in service platforms, and Tianjin City has begun to select organizers for consumer goods trade-in subsidy activities.

Furthermore, in July, China's national telecommunications service dropped 2.4% year on year, and the decline narrowed somewhat from month to month. Export sales continued to grow at a high rate. In July, China's electricity exports increased 16.8% year on year. Among them, air conditioning exports increased by 45.4%, maintaining strong growth. Guoxin Securities pointed out that in July, Home Appliance Zero showed signs of stabilization. As household appliance trade-in policies continue to be implemented in various regions, retail demand for home appliances is expected to pick up markedly.

4. Electricity stocks were higher in the afternoon. At the close, CGN Power (01816) rose 5.31% to HK$3.57; Huadian International (01071) rose 4.28% to HK$4.14; China Resources Power (00836) rose 1.58% to HK$22.5; and China Power (02380) rose 0.87% to HK$3.48.

According to information released by the National Energy Administration on the 22nd, the electricity consumption of the entire society in July was 939.6 billion kilowatt-hours, an increase of 5.7% over the previous year. Jiang Debin, deputy director of the Statistics and Data Center of the China Electric Power Enterprise Federation, said that since the beginning of summer, there have been continuous high temperatures in many parts of the country, and the maximum electricity consumption load has risen rapidly, breaking the highest record in history several times. In July, the country's regulated maximum electricity consumption load reached 1.451 billion kilowatts, a record high. Under the guidance of relevant national departments, enterprises in the power industry actively respond to high temperatures and heavy loads during peak summer, and the power supply guarantee is strong and effective. Haitong Securities pointed out earlier that the thermal power sector can expect multiple benefits in the third quarter. The overall improvement in electricity prices, electricity volume, and coal prices is worth watching.

Popular volatile stocks

1. GDS - SW (09698) was strong throughout the day. At the close, it rose 13.94% to HK$14.22.

World Data announced second-quarter results. Net revenue increased 14.3% year over year to RMB 2.8264 billion; gross profit was about 0.638 billion yuan, up 15.76% year on year. Net loss was approximately $0.232 billion, and adjusted EBITDA (non-GAAP) increased 6.2% year over year to $1.312 billion.

2. Mingchuang Premium (09896) rose significantly. At the close, it rose 6.9% to HK$31.75.

According to late reports, Mingchuang Premium launched a new business format “24-hour supermarket” this year. Internally, it is called a supermarket. It only serves the immediate needs of consumers within 3-10 kilometers to place orders online and have them delivered in one hour. Currently, it has opened more than 200 stores.

3. AIA (01299) opened low and moved higher. At the close, it rose 5.93% to HK$54.45.

AIA announced 2024 interim results. The value of the new business rose 25% year over year to 2.455 billion US dollars, a record high. During the period, the Group's net profit increased by 47.3% year-on-year to $3.314 billion. Profit from operations after tax in accordance with IFRS increased 3.5% year over year to $3.386 billion, while the interim interest rate increased 5.2% year over year to HK44.5 cents.

4. Dongfang Overseas International (00316) rose 5.61% to HK$114.8 at the close.

Oriental Overseas International will release interim results today. According to a research report released by HSBC Research, the Group's EBIT profit margin is expected to improve by 14.6 percentage points to 16.3% on a semi-annual basis, while recurring profit is expected to increase 2.3 times to 0.792 billion US dollars on a semi-annual basis. The rating was upgraded from “reduced holdings” to “held”, and the target price was raised from HK$85 to HK$115.

5. Greater China Finance (00431) volume plummeted. At the close, it fell 87.18% to HK$0.01.

Greater China Finance announced that it received a letter from the Stock Exchange. According to section 13.24 of the listing rules, the company failed to maintain sufficient business operations and had significant assets to support its operations, so that the company's shares could continue to be listed. Trading of the company's shares will be suspended on September 2.