Market Overview - On July 22, the Hang Seng Index rose by 136 points or 0.5%, closing at 25,130 points, stabilizing above the 25,000 mark[1] - The Hang Seng Tech Index increased by 0.4%, closing at 5,606 points, indicating a healthy bullish trend with orderly upward movement and increased trading volume[1] - The total market turnover reached HKD 266.1 billion, maintaining an active level, with a net inflow of HKD 2.72 billion through the Hong Kong Stock Connect[1] Sector Performance - Cyclical high beta sectors performed notably, with sub-sectors such as non-ferrous metals, materials, engineering machinery, electricity, food and beverage, and shipping showing strong upward momentum[1] - The prices of major commodities rose significantly, with coking coal and polysilicon futures increasing by 5.9% to 9.0%, directly boosting related stocks[1] - Key stocks like China Shenhua (1088 HK), Ganfeng Lithium (1772 HK), and Tianqi Lithium (9696 HK) surged between 4.8% and 8.9%[1] Economic Indicators - The yield on China's 10-year government bonds rose to 1.68%, showing signs of stabilization, which is favorable for stock market performance[1] - The risk premium for the Hang Seng Index has approached a seven-year historical low, with a forecasted PE ratio of 10.8 times, indicating potential support for the overall market performance[2] Industry Developments - AI sector: UBTECH (9880 HK) announced a placement of 30.15 million new shares, expanding its share capital by 6.4%, raising HKD 2.41 billion for business operations and loan repayment[3] - The electronic sector is set to benefit from the launch of the Yarlung Tsangpo River downstream hydropower project, with expected installed capacity of 60GW-70GW, equivalent to three Three Gorges dams[3] Real Estate Insights - New home transaction volume in 30 major cities reached 1.23 million square meters, down 21.7% year-on-year, but better than the previous week's decline of 24.9%[6] - The inventory-to-sales ratio for major cities increased to 105.7, up from 102.2 year-on-year, indicating a growing supply relative to sales[8] - The land transaction volume in 100 major cities fell by 62.9% year-on-year, reflecting a significant slowdown in real estate activity[9]

Market Performance - On July 21, the Hang Seng Index rose by 168 points or 0.7%, closing at 24,944 points, reaching a year-to-date high of 25,010 points[1] - The Hang Seng Tech Index increased by 0.8%, closing at 5,585 points, confirming an upward breakout from the range since May[1] - Market turnover increased to over HKD 263 billion, with net inflow from the Hong Kong Stock Connect at HKD 7.05 billion[1] Sector Highlights - The insurance, brokerage, oil, coal, non-ferrous metals, food and beverage, and power sectors performed strongly[1] - The launch of the Yarlung Tsangpo River hydropower project, with a total investment of approximately RMB 1.2 trillion, boosted investor sentiment in related sectors[2] - Shares of Huaxin Cement surged by 85.6%, while leading companies like Conch Cement and China National Building Material rose by 9.0% and 12.6%, respectively[1] Economic Outlook - The hydropower project is expected to directly boost fixed asset investment growth through the cement, engineering machinery, and power equipment sectors, potentially offsetting weaknesses in real estate[2] - The project is anticipated to benefit related stocks over the next decade, as current valuations are considered low[2] Real Estate Market - New home transaction volume in 30 major cities fell by 21.7% year-on-year, with a total of 1.23 million square meters sold[3] - The decline is an improvement from the previous week's 24.9% drop, with a week-on-week decrease of 5.3%[3] AI Sector Developments - UBTECH Robotics won a procurement project in Shanghai worth approximately RMB 90 million, marking the largest disclosed order in the industry[3] - The stock price of UBTECH rose by 5.2% to a one-month high following the announcement[3] Healthcare Sector Insights - The Hang Seng Healthcare Index fell by 1.2%, seen as a normal correction after recent gains[4] - The National Healthcare Security Administration is promoting a comprehensive value assessment for innovative drugs and devices, which is expected to benefit high-value clinical innovations[4]

Market Overview - The Hang Seng Index rose 2.8% last week, closing at 24,825 points, while the Hang Seng Tech Index increased by 5.5% to 5,538 points, breaking out of a stagnation since May[1] - Average daily trading volume decreased by 3.1% to over HKD 246.6 billion, but remains at an active level, with a net inflow of HKD 22.5 billion through the Stock Connect[1] - The real estate sector was the only sector to decline, while healthcare, consumer discretionary, and materials sectors rose by 12.1%, 6.1%, and 3.7% respectively[1] Sector Performance - The information technology sector is expected to see earnings growth of 27.3% and 17.4% over the next two years, with a PE ratio at the 37.5th percentile over the past seven years[1] - The healthcare sector is projected to grow earnings by 83.7% and 21.7% in the next two years, with a PE ratio at the 43.1st percentile, indicating potential for high excess returns in the short term[1] Economic Indicators - China's GDP growth for Q2 2025 is expected to be 5.2%, with a 5.3% growth for the first half of the year, exceeding expectations and potentially reducing the need for aggressive stimulus policies[1] - Despite the Hong Kong Monetary Authority's actions to withdraw HKD from the market, the 1-month HIBOR fell to 1.07%, indicating ample liquidity in the market[1] Investment Strategy - The report suggests maintaining a defensive position in high-dividend sectors such as telecommunications, utilities, and finance, while looking for opportunities in AI computing, semiconductor equipment, and biomedicine[1] - The report highlights the importance of monitoring changes in U.S. Federal Reserve policies and corporate mid-term earnings guidance for future market direction[1] Industry Dynamics - The AI sector saw a significant rise, with the stock of InnoVision (2121 HK) surging 10% to a three-month high, while Fourth Paradigm (6682 HK) raised HKD 1.3 billion for R&D in smart devices and blockchain[2] - In the automotive sector, Great Wall Motors (2333 HK) reported a 1% increase in revenue but a 10.2% drop in net profit for the first half of the year, underperforming compared to peers like Geely (175 HK)[2] Healthcare Sector Insights - The Hang Seng Healthcare Index surged 11.9% last week, driven by the government's initiation of adjustments to the basic medical insurance drug list, which may benefit innovative drugs[3] - The government's new procurement policies are expected to favor high-quality products, potentially improving the operating environment for leading innovative drug companies[12]

Market Overview - On July 16, the Hang Seng Index fell by 72 points or 0.3%, closing at 24,517 points, while the Hang Seng Tech Index decreased by 0.2% to 5,418 points[1] - The total market turnover reached HKD 259 billion, indicating active trading, with a net inflow of HKD 1.6 billion through the Hong Kong Stock Connect[1] Sector Performance - Funds are shifting towards previously lagging sectors such as technology, robotics, software, telecommunications, and food and beverage[1] - Pharmaceutical stocks like Lijun Pharmaceutical (1513 HK), Fosun Pharma (2196 HK), and Weigao Group (1066 HK) saw gains between 5.6% and 13.1%[1] - High-end manufacturing stocks such as Sanhua Intelligent Control (2050 HK) surged by 8.4%, while related AI and robotics manufacturing stocks rose by 3.9% to 6.4%[1] Global Financial Trends - The US dollar index and the 10-year US Treasury yield have been gradually rising since July, potentially impacting liquidity in the Hong Kong market[2] - The forecasted PE ratio for the Hang Seng Tech Index is 15.6 times, close to historical lows, with its valuation relative to the NASDAQ 100 at the 23.3% percentile over the past three years[2] Company Highlights - Pop Mart (9992 HK) expects a revenue increase of no less than 200% and a net profit growth of at least 350% for the first half of the year, but its stock fell by 4.0% post-announcement due to profit-taking[3] - 361 Degrees (1361 HK) anticipates double-digit revenue growth for the first half of the year, with a year-to-date increase of 19.1%[3] Healthcare Sector Developments - The Hang Seng Healthcare Index rose by 0.8%, with China Biologic Products (1177 HK) announcing a USD 500 million acquisition of a new drug company, which is expected to drive revenue growth[4] - Green Leaf Pharmaceutical (2186 HK) shares increased by 9.4%, driven by expectations of overseas licensing agreements[4] Renewable Energy and Utilities - The renewable energy and utilities sector saw a general decline, except for Winsun Holdings (3393 HK), which rose by 3.6% and has increased by 28.7% since coverage began in June[5]

Market Overview - The Hong Kong stock market saw a significant rise on July 15, with the Hang Seng Index increasing by 386 points or 1.6%, closing at 24,590 points, marking a four-month high [1] - The Hang Seng Tech Index rose by 2.8%, closing at 5,431 points, indicating a potential breakout from a sideways trend since May [1] - The total market turnover increased to over 288.4 billion HKD, signaling positive market sentiment with rising prices and volumes [1] - Notable inflows were observed in the Hong Kong Stock Connect, with a net inflow of 3.82 billion HKD [1] Macroeconomic Dynamics - In Q2 2025, China's GDP grew by 5.2% year-on-year, with a 5.3% growth in the first half, exceeding expectations and suggesting a potential shift in policy focus towards structural support rather than short-term stimulus [2] - The nominal GDP growth rate for Q2 was only 3.9%, with a deflationary pressure indicated by a -1.3% GDP deflator, marking nine consecutive quarters of negative inflation [2] - Investment contribution to GDP rose to 24.7%, while consumption contributed 52.3%, reflecting a slight increase of 0.6 percentage points [2] Industry Dynamics - The new energy vehicle sector led the market gains recently, with companies like Li Auto and NIO seeing stock increases of 1%-4% [5] - The healthcare sector also performed well, with the Hang Seng Healthcare Index rising by 2.9% following the announcement of a new commercial health insurance drug list by the National Healthcare Security Administration [5] - The photovoltaic sector faced declines, with major companies like Xinyi Solar and LONGi Green Energy dropping by 2.9%-3.9% due to a U.S. investigation into imported polysilicon [6] Real Estate Sector Insights - The new housing transaction volume in 30 major cities fell by 26.5% year-on-year, contrasting with a previous week’s increase of 5.8% [10] - In first-tier cities, cumulative new housing transaction volumes showed mixed results, with Beijing down 0.2% and Shanghai up 2.9% year-on-year [11] - The land transaction volume in 100 major cities dropped by 44.9% year-on-year, indicating a significant slowdown in real estate activity [13] Company-Specific Insights - WuXi AppTec (2359 HK) is expected to exceed earnings expectations for the first half of 2025, with projected revenue growth of 20.6% to 20.79 billion RMB and a 44.4% increase in adjusted net profit [7] - The company’s second-quarter revenue is anticipated to rise by 15.4% to 11.14 billion RMB, driven by improved operational efficiency [7] - The target price for WuXi AppTec has been raised to 98.20 HKD, reflecting an upward revision in earnings forecasts [9]

Market Overview - On July 14, the Hang Seng Index rose by 64 points or 0.3%, closing at 24,203 points, with a daily trading range of only 167 points[1] - The Hang Seng Tech Index increased by 0.7%, closing at 5,283 points, while total market turnover decreased to HKD 210.4 billion[1] - Net inflow from the Hong Kong Stock Connect was HKD 8.2 billion, indicating a positive sentiment despite the lack of clear direction in the market[1] Sector Performance - The biopharmaceutical sector showed strong performance, with 3SBio (1530 HK) rising by 12.2% and BGI Genomics (6955 HK) increasing by 22.3%[1] - The chemical, paper, copper, and other non-ferrous metal sectors benefited from "capacity reduction" policies, contributing to their positive performance[1] - AI and robotics-related stocks, previously lagging, saw gains, with Kingsoft Cloud (3896 HK) and GDS Holdings (9698 HK) rising between 2.9% and 8.5%[1] Macroeconomic Insights - In June, China's M1 money supply grew by 4.6%, the fastest rate since May 2023, while M2 increased by 8.3%, the highest since March 2024[2] - Social financing in June increased by CNY 900 billion, with government bonds contributing CNY 500 billion to this growth[2] - New home sales in major cities fell by 26.5% year-on-year, indicating a downturn in the real estate market[2] Industry Developments - 361 Degrees (1361 HK) reported a 10% year-on-year growth in retail sales for its main brand and children's clothing, with online sales up by approximately 20%[3] - Sai Jing Technology (580 HK) announced a CNY 180 million acquisition of Hunan Hong'an's equity, which is expected to enhance its supply chain and customer resources[3] - The pharmaceutical sector rose by 2.1%, driven by expectations of new drug listings in the national insurance catalog for 2025[4] Future Projections - Tianlun Gas (1600 HK) is expected to return to profit growth starting FY25, with a projected CAGR of 12.0% from FY24 to FY27[6] - The global autonomous driving market is projected to reach USD 207.4 billion in 2024, growing at a CAGR of 31.0% until 2027[13] - China's autonomous driving market is expected to grow from CNY 330 billion in 2023 to CNY 791.5 billion by 2027, with a CAGR of 24.4%[13]

Market Overview - The Hang Seng Index rose by 0.9% last week, closing at 24,139 points, while the Hang Seng Tech Index increased by 0.6% to 5,248 points[1] - Weekly market turnover decreased by 1.7% to HKD 242.5 billion, with a net inflow of HKD 20.7 billion through the Stock Connect[1] - The market is experiencing significant rotation among sectors, with strong inflows into stablecoin concept stocks, brokerages, and biopharmaceuticals, indicating a positive investment cycle[1] Macroeconomic Insights - The latest FOMC minutes revealed that only a few Fed officials support a rate cut in July, with most concerned about inflation risks from new tariffs[2] - Initial jobless claims in the U.S. unexpectedly fell to 227,000, the lowest in seven weeks, indicating a resilient labor market[2] Sector Performance - The consumer sector saw declines, with stocks like Maogeping and Lao Pu Gold dropping between 5% and 9% last week[3] - The vocational education sector performed well, with New Higher Education and China Spring rising by 24.2% and 14.6%, respectively[3] Healthcare Sector - The Hang Seng Healthcare Index slightly declined by 0.05% after two weeks of gains, despite WuXi AppTec's stock surging by 10.5% following a positive earnings announcement[4] - WuXi AppTec expects a revenue of approximately RMB 20.8 billion for H1 2025, reflecting a year-on-year growth of about 20.6%[4] Energy and Utilities - The renewable energy and utilities sectors experienced slight fluctuations, with notable increases in stocks like Xinyi Solar and GCL-Poly Energy, rising by 2.4% and 9.8%, respectively[5] - Environmental stocks also saw gains, with Everbright Environment and Beijing Enterprises Water rising by 3.8% and 5.7%[5] Company-Specific Updates - Tianlun Gas is expected to return to profit growth starting FY25, with a projected CAGR of 12.0% for net profit from FY24 to FY27[6] - The company aims to increase its dividend payout ratio from 30.0% in FY23 to 35.0% by FY25, indicating a commitment to shareholder returns[11]

Market Overview - On July 10, the Hang Seng Index rose by 136 points or 0.6%, closing at 24,028 points, while the Hang Seng Tech Index fell by 0.3% to 5,216 points[1] - The turnover in the market reached over HKD 246.7 billion, with a net inflow of HKD 2.9 billion through the Stock Connect, indicating a sustained profit-making effect in the market[1] - The Hang Seng China Enterprises Index increased by 1.5%, driven by strong performance from central state-owned enterprises[1] Sector Performance - The banking, brokerage, consumer electronics, biomedicine, and domestic insurance sectors showed notable performance, with property stocks benefiting from rumors of a central urban work conference and expectations of a restart in housing policies[1] - Specific property stocks like Longfor Group (960 HK), Sunac (1918 HK), and R&F Properties (2777 HK) saw price increases of 20.9%, 13.4%, and 11.4% respectively[1] Commodity Insights - Prices for mainland black commodities such as iron ore and rebar have surged, driven by expectations of "capacity reduction" policies and increased demand from the real estate sector[2] - If the upward trend in black commodities and the 10-year Chinese government bond yield continues, it will benefit cyclical sectors in the market[2] Real Estate Market Trends - The transaction volume of new homes in 30 major cities reached 1.89 million square meters, a year-on-year decline of 1.1%, which is an improvement from the previous week's 23.1% decline[5] - The inventory-to-sales ratio for major cities was 63.1, higher than last year's 59.7 but lower than the previous week's 68.2[7] - Land transaction volume in 100 major cities increased by 15.3% year-on-year, totaling 2.063 million square meters[8] Investment Strategy - The report suggests maintaining a defensive position in high-dividend sectors such as telecommunications and public utilities while gradually positioning in growth areas like AI, semiconductor equipment, and biomedicine[12] - The market is expected to continue its range-bound trading pattern, with a focus on upcoming policy signals and liquidity catalysts for potential style shifts[12]

Market Performance - The Hang Seng Index fell by 255 points or 1.1%, closing at 23,892 points[1] - The Hang Seng Tech Index dropped by 1.8%, ending at 5,231 points[1] - Total market turnover reached HKD 233.9 billion, with a net inflow of HKD 9.2 billion through the Stock Connect[1] Sector Highlights - Biopharmaceutical, gaming, engineering machinery, education, and entertainment sectors showed strong performance[1] - Superstar Legend (6683 HK) surged by 94.4%, with a trading volume of HKD 11.49 billion[1] - Hong Kong Travel (308 HK) rose by 19.9%, with a trading volume of HKD 2.64 billion[1] New Listings - Three key new stocks performed well on their debut: Lens Technology (6613 HK) up 9.4%, Geek+ (2590 HK) up 5.4%, and Fortior (1304 HK) up 16.2%[1] - NIO (3750 HK) and Heng Rui Pharmaceutical (1276 HK) both reached new highs, rising by 7.2% and 15.6% respectively[1] Macroeconomic Indicators - China's CPI rose by 0.1% year-on-year in June, marking the first increase in five months[2] - Core CPI increased to 0.7%, the highest since April 2024[2] - PPI fell by 3.6% year-on-year, with production materials down 4.4%[2] Real Estate Market - New home transaction volume in 30 major cities reached 1.89 million square meters, down 1.1% year-on-year, an improvement from the previous week's 23.1% decline[5] - The inventory-to-sales ratio for major cities was 63.1, higher than last year's 59.7 but lower than the previous week's 68.2[7] - Land transaction volume in 100 major cities increased by 15.3% year-on-year, totaling 2.063 million square meters[8]

Market Overview - The Hang Seng Index rose by 260 points or 1.1%, closing at 24,148 points, driven by a rebound in technology stocks[1] - The Hang Seng Tech Index increased by 1.8%, closing at 5,325 points, with a total market turnover exceeding HKD 213.3 billion[1] - Net inflow into Hong Kong Stock Connect was HKD 386 million, indicating positive sentiment in the market[1] Sector Performance - Cathay Financial International (1788 HK) surged by 28.5%, becoming the most actively traded stock with a turnover of HKD 12.8 billion[1] - Other notable performers included Kuaishou (1024 HK), which rose by 5.2%, reaching a three-month high[1] - The gaming, cultural tourism, brokerage, and consumer electronics sectors showed strong performance, with major tech stocks like Alibaba (9988 HK) and Meituan (3690 HK) rising by 1.5% and 3.6% respectively[1] Economic Indicators - The new housing transaction volume in 30 major cities reached 1.89 million square meters, a year-on-year decline of 1.1%, showing improvement compared to the previous week's 23.1% drop[5] - The inventory-to-sales ratio for major cities was 63.1, higher than last year's 59.7 but lower than the previous week's 68.2[7] - Land transaction volume in 100 major cities increased by 15.3% year-on-year, totaling 2.063 million square meters[8] Policy and Market Outlook - The market is expected to maintain high-level fluctuations, with a focus on technology stocks for further upward movement[2] - Long-term capital is improving, suggesting no need for significant reduction in positions[2] - The government is expected to implement supportive policies to stabilize the real estate market, which may benefit both state-owned and local enterprises[11]