The Zhitong Finance App learned that Hong Kong stocks fell after opening low in early trading. The Hengke Index once fell more than 2%, then bottomed out and rebounded in the afternoon, and all turned red. At the close, the Hang Seng Index rose 0.53% or 93.87 points to 17786.32 points, with a full day turnover of HK$108.135 billion; the Hang Seng State-owned Enterprises Index rose 0.34% to 6247.13 points; and the Hang Seng Technology Index rose 0.46% to 3461.22 points.

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

Meituan-W (03690) led the blue chip increase. At the close, it rose 12.55% to HK$115.7, with a turnover of HK$10.004 billion, contributing 123.21 points to the Hang Seng Index. Meituan achieved revenue of 155.527 billion yuan in the first half of the year, up 22.87% year on year; net profit was 16.72 billion yuan, up 107.81% year on year. Revenue for the second quarter was 82.251 billion yuan, up 21.02% year on year; profit for the period was 11.352 billion yuan, up 142.1% year on year. The company stated that it will repurchase the company's Class B common shares in the open market from time to time for a total amount not exceeding 1 billion US dollars.

In terms of other blue-chip stocks, Mengniu Dairy (02319) rose 9.65% to HK$13.18, contributing 5.8 points to the Hang Seng Index; Haidilao (06862) rose 5.67% to HK$13.04, contributing 1.91 points to the Hang Seng Index; Ideal Automobile-W (02015) fell 9.75% to HK$73.15, dragging down the Hang Seng Index by 17.59 points; and BYD Electronics (00285) fell 6.27% to HK$27.65, dragging down the Hang Seng Index by 2.33 points.

In terms of popular sectors

On the market, large technology stocks had mixed ups and downs. After Meituan's performance, it surged 12%, while Alibaba declined slightly. The performance of some banks fell short of expectations, and domestic bank stocks fell collectively today; Maersk lowered WK37 quotes twice, and shipping stocks weakened; power stocks, gaming stocks, heavy infrastructure stocks, automobile stocks, and petroleum stocks declined one after another. On the other side, new orders picked up at an accelerated pace, and CRO concept stocks rose collectively; the sector welcomed multiple benefits, with most PV stocks rising; dairy stocks, water stocks, and catering stocks performed well.

1. Domestic bank stocks fell collectively. At the close, China CITIC Bank (00998) fell 6.73% to HK$4.57; Bank of Communications (03328) fell 6.31% to HK$5.79; Agricultural Bank (01288) fell 4.09% to HK$3.52; and CCB (00939) fell 3.26% to HK$5.63.

In response to the bank sector's correction, Zheshang Bank pointed out that early bank stocks, as safe-haven varieties, played the role of ATMs in the process of style recovery. Furthermore, the disclosure of some bank performance on August 28 fell short of the expectations of some investors, which also affected market sentiment. Judging from the published bank report, Bank of Communications's net profit for the first half of the year was 45.287 billion yuan (RMB, same below), down 1.63% year on year; core profit fell 6.5% year on year. China CITIC Bank achieved operating income of 108.64 billion yuan in the first half of the year, up 2.60% year on year; net profit was 35.49 billion yuan, down 1.60% year on year.

2. Shipping stocks are weakening. At the close, COSCO Marine Energy (01138) fell 4.41% to HK$8.45; Pacific Shipping (02343) fell 2.74% to HK$2.13; and COSCO Marine Holdings (01919) fell 1.48% to HK$10.62.

On August 23, the Shanghai Shipping Exchange released the Shanghai Export Container Composite Freight Index at 3097.63 points, down 5.60% from the previous period. The US-West and US-East routes fell sharply by 9.51% and 8.08% respectively, while European and Mediterranean routes also fell 4.56% and 2.63%, respectively. Also, Maersk's price dropped to 5,600 US dollars/FEU in the second week of September, and Mediterranean Shipping's price dropped to around 6040 US dollars/FEU in early September. Geographically, according to reports, the cease-fire negotiations in the Gaza Strip will continue in Doha in the next few days; the Middle East will still maintain “talk while fighting.”

3. PV stocks are mostly higher. At the close, Xinte Energy (01799) rose 5.62% to HK$6.77; GCL Technology (03800) rose 4.63% to HK$1.13; and Xinyi Energy (03868) rose 2.74% to HK$0.75.

The State Information Office released the white paper “China's Energy Transition”. Among them, it is mentioned that the construction of large-scale wind power photovoltaic bases will be promoted in an orderly manner, and the construction of a 0.45 billion kilowatt large-scale wind power photovoltaic base project is planned. Actively promote the development of distributed new energy sources, and carry out the “Thousand Villages Control the Wind Campaign” and the “Thousands of Households Bathing the Light Campaign”. In addition, two leading photovoltaic companies, Longji and Central, recently announced increases in silicon wafer prices. According to Huaan Securities, the photovoltaic sector is expected to enter the final stage of this downward cycle in the second half of the year. Currently, “benefits” for the sector are gradually accumulating, there are no new “marginal disadvantages”, and the bottom is not pessimistic.

4. CRO concept stocks rose collectively. At the close, Medicinal Kangde (02359) rose 3.16% to HK$34.25; Zhaoyan New Pharmaceutical (06127) rose 2.54% to HK$7.27; and Pharmaceutical Biotech (02269) rose 2.28% to HK$10.76.

With the steady recovery of overseas investment and financing, CXO overseas orders showed a clear recovery trend, and the growth rate of new orders showed a quarterly acceleration trend. Specifically, Kanglong Chemical's new order amount in the first half of the year increased by more than 15%; Gloria Ying's new orders in the first half of the year increased by more than 20% year over year, and the second quarter had a significant increase compared to the first quarter; by the end of June 2024, the total number of uncompleted orders from Yao Ming Biotech had increased to 20.11 billion US dollars, and the number of uncompleted orders within 3 years was about 3.64 billion US dollars.

The interim report is coming to an end, and high-performing stocks have performed brilliantly. At the close, IGG (00799) rose 21.8% to HK$3.24; China Feihe (06186) rose 13.17% to HK$4.04; Meituan-W (03690) rose 12.55% to HK$115.7; China Aviation Communications (00696) rose 10.72% to HK$9.19; Zheng Meiji (00564) rose 7.24% to HK$9.18; China Insurance (01339) rose 6.14% to HK$2.94; Luye Pharmaceuticals (02186) rose 5.93.4% HK$03; one tow Shares (00038) rose 5.01% to HK$7.75.

Popular volatile stocks

1. Ideal Automobile-W (02015) fell sharply after the close. At the close, it fell 9.75% to HK$73.15.

Ideal Auto achieved revenue of 31.678 billion yuan in the second quarter, up 10.6% year on year; net profit of 1.1 billion yuan, down 52.3% year on year; adjusted net profit of 1.503 billion yuan, down 44.9% year on year. Vehicle gross margin was 18.7%, down 2.3 percentage points year over year. The company expects to deliver 0.145 million to 0.155 million vehicles in the third quarter; total revenue for the third quarter is expected to be 394 to 42.2 billion yuan, an increase of 13.7 to 21.6% over the previous year.

2. Longyuan Electric Power (00916) was under pressure throughout the day. At the close, it fell 6.38% to HK$6.16.

Longyuan Electric Power achieved revenue of RMB 18.883 billion in the first half of the year, a year-on-year decrease of 4.9%; net profit attributable to equity holders of the company was RMB 4.02 billion, a decrease of 21.6% year-on-year. The decline in revenue was mainly due to the wind power division's electricity sales and other revenue of RMB 13.781 billion in the first half of 2024, a decrease of 9.4% over the previous year.

3. BYD Electronics (00285) hit a four-month low. At the close, it fell 6.27% to HK$27.65.

BYD Electronics achieved revenue of 78.581 billion yuan in the first half of the year, an increase of 39.87% year on year; profit attributable to shareholders was 1.518 billion yuan, an increase of 0.14% year over year, and the net profit growth was far lower than previous institutional expectations. The gross margin fell from about 7.85% in the first half of 2023 to about 6.85% during the period, mainly due to changes in the sales structure.

4. China's free rate (01880) continued to hit a new low. At the close, it fell 4.82% to HK$46.4.

Five departments including the Ministry of Finance jointly issued the “Notice on Improving the City's Duty Free Shop Policy”. Ping An Securities pointed out that despite the implementation of duty-free policies in the city, due to large differences from past policies and applicable purchasing groups, there is still plenty of room for development in cooperation between duty-free operators and more brands. The increase in sales brought about by duty-free shops in the city remains to be seen, and operators are also required to actively expand cooperation with brands using existing policies.