Market Performance - The Hang Seng Index rose by 129 points or 0.5%, closing at 25,667 points, marking a five-day consecutive increase[1] - The Shanghai Composite Index increased by 23 points or 0.7%, closing at 3,605 points, reaching a nine-month high[2] - The S&P 500 index gained 4 points, closing at 6,363 points, while the Dow Jones Industrial Average fell by 316 points or 0.7%[2] Economic Indicators - The People's Bank of China conducted a 331 billion yuan reverse repurchase operation at a steady rate of 1.4%, resulting in a net withdrawal of 119.5 billion yuan for the day[2] - The RMB/USD midpoint rose by 29 pips to 7.1385, the highest since November of the previous year[2] Automotive Industry - In June 2025, sales of Chinese brand passenger cars reached 1.707 million units, a month-on-month increase of 5.3% and a year-on-year increase of 19.3%, capturing 67.3% of total passenger car sales[3] Corporate Earnings - Kintor Pharmaceutical (00148.HK) expects a net profit increase of over 70% for the six months ending June 2025, exceeding approximately 2.56 billion yuan[4] - Lingbao Gold (03330.HK) anticipates revenue between 7.492 billion to 7.92 billion yuan, representing a year-on-year increase of approximately 75% to 85%[4]

Market Performance - The Hang Seng Index (HSI) rose by 408 points or 1.6%, closing at 25,538 points, marking a three-year high and a four-day consecutive increase[1] - The Hang Seng Tech Index increased by 138 points or 2.5%, closing at 5,745 points[1] - The total trading volume in Hong Kong was 333.067 billion HKD[1] Economic Indicators - The People's Bank of China conducted a 150.5 billion CNY reverse repurchase operation at a steady rate of 1.4%[1] - The CNY/USD midpoint rose by 46 pips to 7.1414, the highest level since November 6 of the previous year[1] A-Share Market - The Shanghai Composite Index (SSE) gained less than 1 point or 0.01%, closing at 3,582 points with a trading volume of 857.05 billion CNY[1] - The Shenzhen Component Index fell by 40 points or 0.4%, closing at 11,059 points, with a trading volume of 1.01 trillion CNY[1] - The ChiNext Index decreased by less than 1 point or 0.01%, closing at 2,310 points, with a trading volume of 448.7 billion CNY[1] Trade Agreements - The EU and the US are reportedly close to an agreement to impose a 15% tariff on most products, which led to a rise in US stock markets[2] - The Dow Jones Industrial Average increased by 507 points or 1.1%, reaching 45,016 points, near its historical high[2] - The S&P 500 index rose by 49 points or 0.8%, closing at 6,358 points, marking the 12th record high this year[2] Corporate Earnings - WuXi Biologics (02269.HK) expects a 16% year-on-year increase in revenue for the first half of the year, with a gross margin improvement of approximately 3.6%[3] - Profit attributable to equity shareholders is projected to grow by about 54% year-on-year, with adjusted net profit expected to increase by around 11%[3]

Market Overview - The Hang Seng Index is constrained by the March high of 24,874 points, with expectations of new financial policies from mainland China to stabilize the market, including reserve requirement ratio cuts and interest rate reductions [2] - The recent US-China trade negotiations have led to a temporary reduction in tariffs, but ongoing tensions remain, particularly with accusations from President Trump regarding China's compliance with agreements [2] - The Hang Seng Index's valuation has returned to reasonable levels, requiring significant positive developments in trade agreements and corporate earnings improvements to maintain upward momentum [2] Macro Focus - The Shanghai Lujiazui Forum is expected to announce a series of policies that could impact the financial sector [4][9] - The People's Bank of China conducted a reverse repurchase operation of 197.3 billion yuan, maintaining a rate of 1.4%, indicating a stable liquidity environment [9] - Foreign investment in domestic stocks has increased, with a net inflow of 33 billion USD in May, reflecting a stable economic outlook in China [9] - Hong Kong's unemployment rate has risen to 3.5%, the highest in two and a half years, with significant increases in the construction, retail, and real estate sectors [9] Company News - Haitan Flavor Industry (3288) has set its IPO price at 36.3 HKD, raising a total of approximately 10.1 billion HKD [11] - Yingtong Holdings (6883) has begun its IPO process, aiming to raise up to 1.1 billion HKD [11] - Chow Tai Fook (6168) has also initiated its IPO, targeting a maximum of 1.1 billion HKD [11] - Pop Mart (9992) has opened its second jewelry store in Beijing, with products selling out quickly, indicating strong consumer demand [11] - JD Group (9618) plans to enter the liquor and travel industry, reflecting diversification efforts [11] - Alibaba's Gaode Map has launched a taxi-hailing service in Macau, enhancing cross-border travel integration [11] - The Hong Kong Stock Exchange (0388) is optimistic about the return of Chinese companies to the Hong Kong market, citing strong liquidity and market capacity [11]

Market Overview - The Hang Seng Index is constrained by the March high of 24,874 points, with expectations of new financial policies from mainland China to stabilize the market, including reserve requirement ratio cuts and interest rate reductions [2] - The recent US-China trade negotiations have led to a temporary reduction in tariffs, with US tariffs on Chinese imports dropping from 145% to 30%, and Chinese tariffs on US goods decreasing from 125% to 10% for a 90-day period [2][3] - The Hang Seng Index's valuation has returned to reasonable levels, requiring significant positive developments in trade agreements and corporate earnings improvements to maintain upward momentum [2] Sector Focus - The report highlights a positive outlook for sectors such as financial stocks, automotive parts, and gold mining stocks, driven by recent developments in trade agreements and geopolitical factors [7][8] - The automotive sector in mainland China saw a year-on-year sales increase of 11.2% in May, with new energy vehicle sales rising by 36.9% [9] Company News - Horizon Robotics plans to raise approximately HKD 47 billion through a share placement at a discount of nearly 7% [10] - Kintor Pharmaceutical is preparing for an IPO in Hong Kong, aiming to raise around USD 100 million [10] - Pop Mart has expanded its production capacity but still faces supply shortages due to high demand for its products [11] - JD Logistics is expanding its operations in Saudi Arabia, having recruited over a thousand staff for its logistics services [10] - Alibaba is focusing on re-establishing its leadership in the technology sector, emphasizing AI and cloud infrastructure as key strategic pillars [10] Economic Indicators - The US Consumer Price Index (CPI) for May showed a year-on-year increase of 2.4%, with core CPI rising by 0.1% month-on-month, indicating that tariffs have not yet significantly impacted overall inflation levels [8] - The Federal Reserve is expected to maintain interest rates, with projections indicating two rate cuts totaling 0.5% for the year [4][8]