Today, the three major indices of Hong Kong stocks fluctuated narrowly. The Hang Seng Index and the National Index all declined in the afternoon. The Hang Seng Index eventually fell 0.13%, the China Index fell slightly by 0.05%, and the Hang Seng Technology Index closed up 0.3%, but it still fell below 4,000 points.

On the market, large technology stocks had mixed ups and downs. Kuaishou rose 2.2%; Xiaomi and Tencent rose slightly; JD, Baidu, and Alibaba all fell 3%; with major conference policies boosted, the photovoltaic sector exploded, and Xinte Energy rose 17% first; institutions indicated that airline performance is expected to continue to improve, aviation stocks are active; the continuous decline in the NEV sector picked up, leading Xiaopeng Motor's performance later. Apple concept stocks, high-speed rail infrastructure stocks, and military stocks generally rose.

On the other hand, gold stocks and copper stocks continued to fall, with Minmetals Resources and China Gold International falling higher; domestic housing stocks surged higher and fell, and industrial chains such as home appliance stocks and building materials and cement stocks fell sharply.

Let's take a look specifically:

Photovoltaic concept stocks were active. Xinte Energy rose more than 17%, GCL New Energy rose more than 14%, GCL Technology rose more than 12%, Follett Glass rose more than 9%, and Xinyi Solar Energy and Rainbow New Energy rose more than 6%.

According to the news, the Association Conference pointed out that the photovoltaic industry is an industry with a very high degree of marketization, and it is better to solve the current industry difficulties through market-based means, but it is also necessary to give full play to the tangible role of the good government, including strengthening the crackdown on vicious competition in below-cost sales; encouraging industry mergers and restructuring; and unblocking market exit mechanisms.

Auto stocks have surged. Xiaopeng has risen by more than 13%, and will rise more than 5% in the future. Ideal Auto, BAIC Motor, Guangzhou Automobile Group, and Geely Auto will rise more than 1%.

Airlines stocks strengthened. Meilan Airport rose nearly 10%, China Southern Airlines, Air China, and Beijing Capital Airport rose more than 4%, and China Eastern Airlines rose more than 3%.

Property stocks and domestic housing stocks rebounded. Zhengrong Services rose more than 13%, Country Garden Services rose more than 7%, Lingyue Service Group, Sunac Services, and Shimao Group rose more than 5%, and Times Neighborhood, Vanke, and China's overseas development rose more than 4%.

The hotel and travel sector weakened, with Tongcheng Travel falling more than 12%, Huazhu Group falling more than 5%, Wanda Hotel Development and Ctrip Group falling more than 2%, and stimulating investment and seaport companies falling by more than 1%.

Nonferrous metals continued to decline. Wanguo International Mining fell more than 5%; Minmetals Resources, Lingbao Gold, China Gold International, and Zhaojin Mining fell more than 3%; Jiangxi Copper, Shandong Gold, and Zijin Mining fell more than 2%; and China's nonferrous mining industry fell more than 1%.

Beer stocks fell collectively. China Resources Beer fell more than 2%, Budweiser Asia Pacific and Hong Kong Shengli Beer fell more than 1%, and Tsingtao Brewery followed suit.

At the individual stock level,Xiaopeng's performance later rose by more than 11%. Revenue for the first quarter exceeded expectations, and gross margin rose sharply to 12.9%.

Lenovo rose nearly 13%, teaming up with Qualcomm and Microsoft to launch a new generation of AI PCs. Xiaomo raised Lenovo's rating, and the AI PC penetration rate is expected to increase from about 2% this year to around 85% in 2028.

COSCO Hai-fa rose of nearly 8%. The company said that at present, the overall production and operation of each box factory is stable and orderly, and on-hand orders are scheduled to be produced until the third quarter.

Today,Southbound capitalNet purchases of HK$1,653 million, of which Hong Kong Stock Connect (Shanghai) made net purchases of HK$1,268 million and Hong Kong Stock Connect (Shenzhen) made net purchases of HK$386 million.

Looking to the future,CICC believes that current fundamental support is not only limited, but has also been weakening recently, reflecting the lagging impact of the slowdown in fiscal expansion since February. On the contrary, optimistic expectations about the effects of the recent policy “combo punch” reflect a further restoration of risk premiums. For policies to be effective, and especially to reflect fundamentals, overall strength and speed of progress are critical, not just goals.

Looking ahead, more room for growth depends on the following two aspects: 1) the 10-year US Treasury interest rate has declined further. CICC believes that the current level of US bond interest rates is reasonable, and it is difficult to contribute more to the rise in the market in the short term; 2) More importantly, whether fundamentals can be improved, or it depends on the strength and speed with which the central government will increase leverage. In terms of allocation, there is currently no clear possibility of significant leverage, and they are unwilling to completely abandon the “dumbbell” strategy (high dividend+technological growth) and completely shift to a pro-cyclical sector.