Today, Hong Kong stocks bottomed out and rebounded. The three major indices all changed from decline to rise. The Hang Seng Technology Index rose to 1.3%, then finally closed up 0.92% and recorded 3 consecutive gains. The Hang Seng Index and China Index rose 0.55% and 0.38% respectively. The Hang Seng Index recorded a rare 10-day rise.

On the market, the rise in large technology stocks helped the market rise. NetEase rose more than 2%, Tencent rose 1.59%, and JD, Meituan, Baidu, and Alibaba all showed gains. Seven departments jointly issued a document to promote intelligent mine construction. Equipment updates are expected to continue to gain strength, and heavy machinery stocks are showing strong performance throughout the day; multiple high-speed rail lines announced price increases, and Guangzhou-Shenzhen Railway shares surged more than 11%; home appliance stocks continued to be active, Hisense home appliances reached new highs, and most pork concept stocks, paper stocks, biotechnology stocks, Apple concept stocks, and gas stocks strengthened. On the other hand, the decline in domestic housing stocks widened further in the afternoon, and Hong Kong retail stocks, auto dealer stocks, and gambling shares weakened throughout the day.

Let's take a look specifically:

Heavy machinery stocks had the highest gains. Sany International rose more than 7%, Zoomlion Heavy Industries rose nearly 6%, and Sinotruk rose more than 4%.

Pharmaceutical outsourcing stocks rebounded. Tiger Pharmaceuticals rose more than 7%, Zhaoyan Pharmaceutical and Pharmaceutical Biotech rose more than 6%, Kanglong Chemical rose more than 4%, and Via Biotech, Jinsirui Biotech, and Pharmaceutical Kangde rose more than 3%.

High-speed rail infrastructure stocks showed strong performance. Guangzhou-Shenzhen Railway shares rose more than 11%, China Express rose more than 7%, China Communications Construction rose nearly 4%, and China Railway, China Railway Construction, and CRRC rose more than 2%.

According to news, starting June 15, passenger fares will be adjusted for the four high-speed rail lines of the Wuhan-Guangzhou High-Speed Rail, Shanghai-Hangzhou Passenger Railway, Shanghai-Kunming Passenger Railway, and Hangzhou-Ningbo Passenger Railway. Shen Wan Hongyuan pointed out that the marketization of high-speed rail fares is an important step for the rapid development of China's high-speed rail industry, benefiting high-speed rail operators and high-speed rail line asset owners.

Home appliance stocks continued to rise. Hisense Home Appliances rose more than 4%, Haier Smart Home and Chuangke Industrial rose more than 3%, Quanfeng Holdings rose more than 2%, and JS Global Life rose more than 1%.

According to the news, Hisense Home Appliances surpassed expectations in the first quarter, achieving operating income of 23.5 billion yuan, an increase of 21% year on year; net profit to mother was 980 million yuan, up 59% year on year.

Power equipment stocks surged, with GCL Technology up more than 7%, Shanghai Electric by more than 6%, Dongfang Electric by more than 4%, CGN Electric by more than 3%, and CGN New Energy by more than 2%.

Domestic housing stocks pulled back, with Shimao Group falling more than 9%, Sunac China falling more than 7%, Ocean Group, Midea Real Estate, and Agile falling more than 6%, Xuhui Holdings falling more than 5%, and Vanke and Yuexiu Real Estate falling more than 4%.

Today, Wuhan introduced ten property market support policies, including buying a house to settle in, and buying a property in a specific project to get 5-10 million yuan vouchers.

Gaming stocks weakened, with Macau International Development falling more than 4%, Aobo Holdings falling nearly 4%, and MGM China falling more than 1%.

Film and television stocks fell, with Huanxi Media falling nearly 5%, Ning Meng Film and Television falling more than 2%, and Maoyan Entertainment and Alibaba Pictures falling more than 1%.

At the individual stock level,China's graphite rose more than 31%, and new materials for olenite electric cars rose more than 77%. The US Treasury will release more “flexibility” in how car manufacturers can obtain tax credits for electric vehicles, which means cars using Chinese graphite batteries can also receive up to 7,500 US dollars in tax credits when entering the US market.

Ideal Auto rose more than 6% to HK$117.8 per share, with a total market capitalization of HK$234.634 billion. According to Ideal Auto's official Weibo account, during the first sales period from April 18 to May 5, the cumulative order for Ideal L6 exceeded 41,000 vehicles.

Today,Southbound fundingNet purchases of HK$5,086 billion include net purchases of HK$3.361 billion from Hong Kong Stock Connect (Shanghai) and HK$1,725 billion from Hong Kong Stock Connect (Shenzhen).

Looking to the future,Guoxin Securities believes that the rise in Hong Kong stocks in April was very sharp. With the confirmation of Hang Seng Technology's bottom valuation over the years, the Hang Seng Index, Hang Seng Hong Kong Stock Connect, and Hang Seng High Dividend have all been confirmed. Its great significance is that Tencent Holdings' price-earnings ratio is adjusted by 12 times. The 15 times price-earnings ratio of the Hang Seng Technology Index can be seen as a downgrade of the new valuation platform in the next few years. This will eliminate the biggest uncertainty of “killing valuations”, help return long-term capital to these companies and start a long-term fundamental restoration market for Hong Kong stocks. In terms of sectors, I recommend Hang Seng Technology, Consumer Services and Household and Personal Products, Resource Products, and High Dividends.