According to the Futu Financial App, the three major stock indexes in Hong Kong rose collectively today, with all of them rising more than 1% at one point during the trading session. At the close, the Hang Seng Index rose 0.77% or 131.68 points to 17,240.39 points, with a total daily turnover of 91.68 billion Hong Kong dollars. The Hang Seng China Enterprises Index rose 0.58% to 6,017.53 points, and the Hang Seng Tech Index rose 0.71% to 3,475.25 points.

Yan Zhaojun, an analyst at CITIC International, believes that the current valuation of Hong Kong stocks is still low, and policy expectations will help repair valuation. The forecasted PE ratio of the Hang Seng Index is expected to recover to 8.3 times, but it is still at a historically low level. Based on factors such as fundamentals, profitability, capital, and valuation, it is expected that the reasonable operating range of the Hang Seng Index in September will be from 16,800 to 18,300 points.

Blue chip performance

Wuxi AppTec (02359) led the blue chips with a 5.96% increase to 36.45 Hong Kong dollars, with a turnover of 0.408 billion Hong Kong dollars, contributing 1.12 points to the Hang Seng Index. Goldman Sachs quoted Wuxi AppTec management in a research report stating that the short-term impact of the US Biosecurity Act is controllable, and there have been no significant changes or cancellations of orders in July. They also mentioned that they will continue to expand the production capacity for peptides driven by strong orders and reaffirmed their confidence in achieving a 60% year-on-year growth in full-year guidance. The management also stated that they will continue to enhance shareholder returns through share buybacks.

In terms of other blue-chip stocks, AIA (01299) rose 3.67% to 55.15 Hong Kong dollars, contributing 35.68 points to the Hang Seng Index; Wuxi Bio (02269) rose 3.36% to 11.68 Hong Kong dollars, contributing 2.3 points to the Hang Seng Index; Chow Tai Fook (01929) fell 4.09% to 5.86 Hong Kong dollars, dragging down the Hang Seng Index by 0.84 points; China Resources Beer (00291) fell 3.49% to 22.1 Hong Kong dollars, dragging down the Hang Seng Index by 2.09 points.

Hot sectors

On the market, large-cap technology stocks generally rose, benefiting from the credit rating upgrade by Fitch. Meituan rose more than 4%; JD.com and Alibaba both rose more than 2%, and Baidu rose more than 1%. Citi believes that the stock price of Wuxi Apptec is undervalued, and the CRO sector is rising again; cement prices rose in many areas in September, and cement stocks rose in general; some pharmaceutical stocks, gambling stocks, aluminum stocks, and copper stocks are in the red, while insurance stocks have a divergent trend. On the other hand, education stocks, home appliance stocks, beer stocks, dining stocks, and Apple concept stocks have all been sluggish.

1. The CRO sector continues to rise. As of the close, Wuxi Apptec (02359) rose by 5.96% to HK$36.45; Asymchem Laboratories (06821) rose by 4.33% to HK$42.15; Wuxi Bio (02269) rose by 3.36% to HK$11.68; Genscript Bio (01548) rose by 3.1% to HK$11.3.

After completing a total of 2 billion yuan of A-share buybacks in February 5, 2024 and May 22, 2024, Wuxi Apptec announced its third buyback plan for A-shares on the evening of September 10. It plans to repurchase shares with 1 billion yuan of its own funds and cancel them, with a repurchase price not exceeding 61.02 yuan per share, in order to maintain the company's value and shareholders' rights, and strengthen investor confidence.

Previously, the US House of Representatives passed the 'Biosafety Bill'. However, the bill still needs to be voted on by the Senate, and the versions passed by both houses need to be reconciled before it can be submitted to the US President for signing into law. Citi believes that the stock prices of Wuxi Apptec and Wuxi Bio are undervalued, but the uncertainty affects investors' confidence in the CXO sector.

2. Cement stocks rose in general. As of the close, Conch Cement (00914) rose by 5.15% to HK$17.16; Huaxin Cement (06655) rose by 3.33% to HK$6.52; West China Cement (02233) rose by 2.41% to HK$0.85; CR Building Materials Technology (01313) rose by 2.1% to HK$1.46.

According to reports, in September, major brand enterprises in multiple regions including Hunan, Shaanxi, Hebei, Henan, Jiangsu, Zhejiang, Liaoning, Jilin, Heilongjiang, Sichuan, and Chongqing notified of raising cement prices. After this round of increases, the bulk cement price of some enterprises in Northeast Heilongjiang has reached 530 yuan/ton. In addition, the Ministry of Ecology and Environment recently formulated the 'Work Plan for Establishing a National Carbon Emission Trading Market Covering the Cement, Steel, and Aluminum Industries (Draft for Soliciting Opinions)', which is now open for public comments. Ping An Securities pointed out that after cement is included in the national carbon trading market, companies with cost advantages such as Huaxin and Conch will further consolidate their position.

3. Casino stocks collectively rebound. As of the close, Melco Int'l Dev (00200) rose by 2.33% to HK$3.95; Sands China (01928) rose by 2.23% to HK$13.76; Wynn Macau (01128) rose by 1.67% to HK$4.88; Galaxy Ent (00027) rose by 1.61% to HK$28.35.

CICC previously pointed out that benefitted from the increase in visitor volume during the summer and the continuous release of new properties, the total gaming revenue in Macau in August met expectations. The bank predicts that the total gaming revenue in Macau in September is expected to reach 17.3-18.8 billion Macau dollars, corresponding to daily gaming revenue between 5.75-6.25 billion Macau dollars. Citi stated that although Typhoon Mokje caused disruptions last Thursday to Friday, the impact this time is much smaller compared to the temporary closure of casinos caused by Typhoon 'Hato' on the first weekend of September last year. To reflect the slight negative impact brought by the typhoon, the bank lowered the gaming revenue forecast for the period ending on September 24 from 18.5 billion to 18.25 billion Macau dollars.

4. The performance of insurance stocks is divergent. At the close, AIA Group (01299) rose 3.67% to HKD 55.15; Ping An Insurance (02318) rose 1.31% to HKD 34.85; on the other hand, China Pacific Insurance (02601) fell 2.22% to HKD 19.42; and PICC Property and Casualty (02328) fell 1.56% to HKD 10.1.

On September 11th, the State Council issued "Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-quality Development of the Insurance Industry." This is the third important document at the national level guiding the high-quality development of the insurance industry, following the "Ten Regulations on Insurance" in 2006 and the "New Ten Regulations" in 2014. It puts forward specific requirements for the medium and long-term development goals, risk disposal, and interest spread loss resolution of the insurance industry. Institutions believe that the new "Ten Regulations" will help the industry achieve long-term and healthy development. In addition, the support measures mentioned for the resolution of interest spread risk are expected to be issued quickly, and the overly pessimistic expectations for interest spread loss are expected to further improve, driving up the valuation center.

Popular fluctuating stocks

1. Immutep Limited (01541) was strong all day. At the close, it rose 17.07% to HKD 3.84.

Immutep Limited announced that, according to the authorized and cooperation agreement with Instil Bio's wholly-owned subsidiary SYNBIOTX regarding IMM2510 and IMM27M, the company has received a recent payment of USD 5 million from SynBioTx. Currently, in accordance with the authorized and cooperation agreement, the company has received a total of USD 15 million in upfront and recent payments, and the company is expected to receive up to USD 35 million in potential near-term payments in the future.

2. Legend Star Holdings Limited (06683) surged significantly. At the close, it rose 11.58% to HKD 2.89.

Legend Star Holdings issued an announcement in response to the unusual fluctuations in the stock price and trading volume. The board of directors confirmed that the group's business operations (including the IP creation and operation segment and the new retail segment) remain normal, and there have been no significant adverse changes in the group's business operations and financial condition, nor any changes in the equity of the controlling shareholder.

3. CGN Mining Company Limited (01164) rose significantly. At the close, it rose 9.56% to HKD 1.49.

According to CCTV news, on September 11th local time, Russian President Putin stated at a working meeting with the government that he requested the government to study measures to restrict the export of strategic resources, including uranium mines. According to data from the World Nuclear Association, Russia is the world's fourth largest uranium producer, while also possessing approximately 44% of the global uranium enrichment capacity.

China Mobile Games (00302) had an outstanding performance. At the close, it rose by 7.14% to 0.75 Hong Kong dollars.

CMGE announced the acquisition of IP rights from Dayu Information, which includes ownership of the 'Chinese Paladin' series games and existing and future derivative works in all regions excluding mainland China. The consideration includes cash of 18.3 million RMB (approximately 20.13 million Hong Kong dollars), and payment through issuing 38 million shares as consideration stock, at an issue price of 1.68 Hong Kong dollars, representing a 140% premium to the previous trading day's closing price.

Brilliance China's (01114) stock price plummeted. At the close, it fell by 12.2% to 2.59 Hong Kong dollars.

Brilliance China announced that Wu Xiao'an has resigned as an executive director, chairman of the board, member of the nominating committee under the board, member of the remuneration committee, and member of the subordinates' executive committee due to other matters. Morgan Stanley pointed out that considering Wu Xiao'an's resignation as chairman at the age of 62, it is not entirely abnormal, but this high-level change does indeed increase uncertainty about the company's future development.