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]

Market Overview - On July 7, the Hong Kong stock market continued its volatile pattern, with the Hang Seng Index slightly down by 0.1% to close at 23,887 points, while the Hang Seng Tech Index rose by 0.3% to 5,229 points, indicating a rebound in the market towards the end of the trading session [1] - Notably, southbound funds saw a rapid increase in buying, with a net inflow of 12 billion HKD, marking the highest single-day inflow in nearly two months [1] - The real estate sector showed strong performance following the Ministry of Housing's statement to "promote the stabilization of the real estate market," while the beverage sector also surged, with companies like Cha Bai Dao and Nayuki's Tea seeing significant gains [1] Macro Dynamics - In the real estate sector, the new home transaction volume saw a narrowing year-on-year decline, with a reported 1.89 million square meters sold in 30 major cities, down by 1.1% year-on-year, which is an improvement from the previous week's 23.1% decline [3] - Different city categories showed varied performance, with first, second, and third-tier cities experiencing year-on-year changes of +3.6%, +19.6%, and -41.5%, respectively [3] Industry Dynamics - The consumer sector remained stable amid ongoing negotiations regarding "reciprocal tariffs" with the U.S., while new consumption stocks performed well, with notable gains in companies like Lao Pu Gold and Pop Mart [4] - The new energy vehicle sector also showed steady performance, with new force car manufacturers rising between 0.5% and 5% [4] - The healthcare sector followed the Hang Seng Index down by 2.0%, which is considered a normal correction after consecutive gains [4] Energy Sector Insights - The report maintains a recommendation to absorb power generation stocks, as summer electricity demand is favorable for the sector, but emphasizes the need to closely monitor coal price trends [6] - In June, coal inventory at major ports turned from a year-on-year decline to a slight increase, with coal prices showing a narrowing year-on-year decline and remaining stable month-on-month [6] Renewable Energy Focus - The photovoltaic sector has seen weak product prices, but there is increased attention from the central government regarding industry competition, which may enhance investment sentiment in related stocks [7] - The nuclear power sector is gaining importance, with uranium prices reaching a new high of 78 USD per pound, driven by geopolitical events and renewed focus on nuclear energy development [8] Natural Gas Demand - Industrial demand for natural gas remains stable, with the manufacturing PMI in China reported at 49.7 in June, slightly above the previous year's figure [9] Stock Recommendations - Weisheng Holdings is highlighted as a potential Hong Kong Stock Connect target, benefiting from the global increase in electricity generation [10] - China National Nuclear Corporation is expected to benefit from rising uranium prices and has established a sales framework agreement for natural uranium [10] - Huaneng International is positioned to benefit from summer electricity demand, with a reported 8.2% year-on-year increase in net profit for Q1 2025 [11] Pharmaceutical Sector Insights - The healthcare sector outperformed the Hang Seng Index in June, with the Hang Seng Healthcare Index rising by 8.4%, marking the sixth consecutive month of gains [13] - The National Healthcare Security Administration and the National Health Commission have introduced policies to support innovative drug development, which is expected to boost sales of high-priced innovative drugs [14] - Key stocks such as China Biologic Products and Innovent Biologics are recommended due to their strong growth prospects and recent positive developments in drug approvals and partnerships [15]

Market Performance - The Hang Seng Index fell by 1.5% last week, closing at 23,916 points[1] - The Hang Seng Tech Index decreased by 2.3%, ending at 5,216 points[1] - Average daily trading volume dropped by 6.1% to HKD 245.4 billion[1] Sector Performance - Consumer discretionary and information technology sectors declined by 2.9% and 2.3% respectively[1] - Healthcare, materials, and real estate sectors increased by 4.9%, 2.6%, and 1.7% respectively[1] Economic Indicators - In June, the U.S. added 147,000 non-farm jobs, with the unemployment rate dropping to 4.1%[2] - Labor force participation rate fell to 62.3%, indicating a potential slowdown in the job market[2] - Average hourly wage growth slowed to 0.2% month-on-month and 3.7% year-on-year, the lowest since May 2021[2] Automotive Sector Insights - Li Auto's June delivery volume fell short of expectations, leading to a 7.9% drop in stock price[3] - Xpeng Motors' new SUV received 10,000 orders within 9 minutes, but concerns over pricing led to a 6.8% decline in stock price[3] - NIO's stock price decreased by 6.6% last week, while CATL's H-shares rose by 9.9% due to stable market share[3] Healthcare Sector Developments - The Hang Seng Healthcare Index rose by 5.0%, outperforming the Hang Seng Index[4] - AstraZeneca is negotiating a potential USD 15 billion licensing deal for a cancer drug with CanSino Biologics[4] Renewable Energy Sector Trends - Solar energy stocks surged, with Xinyi Solar and GCL-Poly Energy rising by 20.4% to 22.8%[5] - Market sentiment is optimistic due to anticipated supportive policies from the government[5] Water Supply Sector Analysis - China Water Affairs reported a 29.9% decline in net profit for FY25, primarily due to credit losses and decreased connection revenue[6][7] - Water supply sales volume increased by 7.4%, with operational revenue rising by 6.5%[7] Real Estate Market Overview - New home sales in 30 major cities fell by 24.7% year-on-year, with a significant drop in first, second, and third-tier cities[11] - Land transaction volume decreased by 55.6% year-on-year, indicating a slowdown in the real estate market[14] Investment Recommendations - The company maintains a "Buy" rating for selected state-owned developers in the real estate sector, anticipating policy support[17][18]

Market Overview - On July 3, the Hang Seng Index fell by 151 points or 0.6%, closing at 24,069 points, while the Hang Seng Tech Index dropped by 0.7% to 5,233 points[1] - The total market turnover was over HKD 231.2 billion, with a net outflow of HKD 3.05 billion from the Hong Kong Stock Connect[1] Sector Performance - The biopharmaceutical sector remained strong, while sectors like brokerage, non-ferrous metals, consumer electronics, and new energy vehicles showed positive performance[1] - Notable stock rebounds were observed in companies with operations in Vietnam, such as Shenzhou (2313 HK) and Jingyuan International (2232 HK), with increases ranging from 2.1% to 6.1%[1] Trade Relations - The U.S. announced a trade agreement with Vietnam, imposing a 20% tariff on imports from Vietnam, while Vietnam will exempt all U.S. goods from tariffs, reducing uncertainty in the market[2] - The easing of restrictions on U.S. chip design software exports to China indicates a potential thaw in U.S.-China trade relations, with upcoming negotiations expected to focus on "technology-resource" agreements[2] Industry Dynamics - In the consumer sector, major stocks like Lao Pu Gold (6181 HK) and Pop Mart (9992 HK) saw declines between 1.9% and 4.4%[3] - The healthcare index rose by 2.6% due to supportive measures for innovative drug development, with stocks like Kangfang (9926 HK) surging by 14.3%[3] Water Supply Sector - China Water Affairs (855 HK) reported a 29.9% decline in net profit to HKD 1.07 billion for FY25, primarily due to expected credit losses and a drop in connection and construction revenues[5][6] - Despite the profit decline, water supply sales volume increased by 7.4% to 1.5 billion tons, with operational revenue rising by 6.5% to HKD 3.53 billion[6] Capital Expenditure - The company's capital expenditure decreased by 36.2% to approximately HKD 3.4 billion for FY25, with a projected further reduction of 41.2% to about HKD 2 billion for FY26, supporting a high dividend policy[7] Stock Rating Adjustment - Following a sustained increase in stock prices, the rating for China Water Affairs was adjusted from "Buy" to "Add," with a target price revised down to HKD 6.80, reflecting a 13.0% upside potential[8]