Futu Securities learned that Hong Kong stocks rebounded strongly today, and all three major indices fluctuated upward throughout the day. The Hang Seng Index once again crossed the 18,000 mark, and the Hang Seng Technology Index broke through the 3800-point mark at one stroke. At the close, the Hang Seng Index rose 2.87% or 514.84 points to 18,430.39 points, with a total daily turnover of HKD 112.758 billion. The Hang Seng State-owned Enterprise Index rose 3.45% to 6,587.77 points, and the Hang Seng Technology Index rose 3.65% to 3,832.32 points.

Guotai Junan points out that the domestic economic policy is mainly focused on stability, the real estate policy continues to be optimized, and the profit expectations in the Hong Kong stock market have improved. Overseas, major central banks successively lowered interest rates for the first time. Although the Federal Reserve's June interest rate meeting expressed a hawkish stance, its obvious intention to protect the financial and labor markets and some economic data showing signs of weakness means that the downward trend of overseas interest rates is a trend. Uncertainty has decreased significantly in the Hong Kong stock market, and it will become a key driving force for the rise of Hong Kong stocks.

Blue chip performance

Xiaomi Group-W (01810) rose throughout the day. At the close, it rose 6.33% to HKD 18.48, with a turnover of HKD 2.882 billion, contributing 30.95 points to the Hang Seng Index. As of 24:00 on June 18, 2024, Xiaomi's 618 promotion has accumulated a total payment amount of over 26.3 billion through various channels, breaking the record for previous promotions. The mobile phone category is in the leading position, ranking first in sales volume and revenue among domestic mobile phones on platforms such as JD, Tmall, Pinduoduo, Douyin, and Kuaishou.

Almost all blue chip stocks rose, with Lenovo Group (00992) up 9.03%, reporting HKD 12.08 and contributing 12.94 points to the Hang Seng Index; CNOOC (00883) up 5.83%, reporting HKD 22.7 and contributing 31.42 points to the Hang Seng Index; Sinopharm (01099) up 5.73%, reporting HKD 22.15 and contributing 2.57 points to the Hang Seng Index; and Meituan-W (03690) up 5.57%, reporting HKD 121.4 and contributing 61.12 points to the Hang Seng Index.

Hot sectors

On the plate, technology stocks broke out across the board, and SLG's new game "San Mou" generated more revenue than expected, causing Bilibili to rise by nearly 20% at one point; the national new investment subscription of the CSI Central State-Owned Enterprises Dividend ETF launched by a head organization such as Guangfa Fund, Southern Fund and Invesco Great Wall Fund. Concept stocks performed strongly, and petroleum stocks, mainland banking stocks, and operators rose. The storage and storage of warehouses is expected to speed up, and mainland real estate stocks rebounded today; AI concept stocks continued to rise; non-ferrous stocks, automobile stocks, and other stocks rose across the board. On the other hand, the previously rising apple concept showed weakness today, and Cowell Electronics fell nearly 3%.

1. Concept stocks performed strongly. At the close, CNOOC (00883) rose 5.83% to HKD 22.7; China Construction Bank (00939) rose 3.57% to HKD 5.81; China National Building Material (03323) rose 3.16% to HKD 2.94; China Unicom (00762) rose 3.09% to HKD 6.68; China Shenhua Energy (01088) rose 2.57% to HKD 39.9.

China National New Control, a subsidiary of the State-owned Assets Supervision and Administration Commission of the State Council, announced on its official website that China National New Investment, a subsidiary of China National New, subscribed to the first issue of the CSI Central State-Owned Enterprises Dividend ETF launched by head organizations such as Guangfa Fund, Southern Fund, and Invesco Great Wall Fund. It is reported that the product is linked to index component stocks and selects listed companies with stable dividend levels and higher dividend yields from the State-owned Assets Supervision and Administration Commission's list of central state-owned enterprises in the Hong Kong stock market. China National New Investment stated that the reason for subscribing to this ETF is to convey a positive signal that it is bullish about the long-term value of central state-owned enterprises in the Hong Kong stock market, while demonstrating the responsibility of state-owned capital operation companies in maintaining the market value of central state-owned enterprises and improving their pricing power in the Hong Kong stock market.

2. Mainland real estate stocks rebounded today. At the close, China Overseas Grand Ocean (00081) rose 5.14% to HKD 2.25; Longfor Group (00960) rose 3.98% to HKD 12.02; Sunac China (01918) rose 3.39% to HKD 1.22; and China Xuhui (00884) rose 2.86% to HKD 0.36.

Recently, many regions including Huizhou and Guiyang have implemented policies related to the 'collection and storage' of indemnificatory housing, further increasing the efforts of collection and storage. On the 12th of this month, the central bank held a symposium on the promotion of work on re-loans for indemnificatory housing in Jinan, researching and promoting the experience of the pilot project of the pre-leasing housing loan support plan, and deploying the promotion of re-loans for indemnificatory housing. Many local collection and storage platforms have stated that they will speed up the collection and storage of commercial housing in the future, and will collect some houses from private housing enterprises. Sinolink Securities pointed out that under the guidance of the supply-side central bank, the work of re-loans for indemnificatory housing continued to advance. Recently, supporting policies are expected to be introduced, and local collection and storage will gradually form physical inventory, accelerating the process of making the industry stable.

3. Golden industrial concept rose together. As of the close, China Gold International (02099) rose 4.48% to HKD 52.5; Lingbao Gold (03330) rose 4.47% to HKD 3.04; Zhaojin Mining (01818) rose 4.44% to HKD 13.64; Zijin Mining Group (02899) rose 2.86% to HKD 16.54.

US retail sales data fell short of expectations, strengthening the market expectations that the Fed will cut interest rates this year. The US dollar and US bond yields fell, and gold futures rose on Tuesday. Xingzheng Futures pointed out that from a long-term perspective, geopolitical risks such as conflicts in many regions around the world, such as the Middle East situation and expectations of global currency and credit risks, continue to exist, providing strong support for precious metals. Under the background of persistently high interest rates, the potential risk of economic recession in Europe and the United States has been long-term. China's gold reserves were 72.8 million ounces at the end of May, the same as last month, ending the trend of the central bank increasing gold reserves for 18 consecutive months. Interest rate reduction expectations have shown a pendulum feature under the influence of US macroeconomic factors, disturbing the trend of gold prices.

4. Autos rose in general. As of the close, Xpeng -W (09868) rose 5.29% to HKD 29.85; Great Wall Motor (02333) rose 4.84% to HKD 12.12; Geely Auto (00175) rose 3.94% to HKD 9.23; Li Auto Inc -W (02015) rose 3.94% to HKD 73.95.

The China Association of Automobile Manufacturers data shows that automobile production and sales in May this year were 2.372 million and 2.417 million respectively, a year-on-year increase of 1.7% and 1.5% respectively. Specifically, the domestic sales of automobiles in May were 1.936 million, a month-on-month increase of 4.3% and a year-on-year decrease of 2.9%; in terms of exports, automobile exports in May were 481,000, a month-on-month decrease of 4.4% and a year-on-year increase of 23.9%. According to the data from the official account of the China Association of Automobile Manufacturers, in terms of penetration rate, the wholesale penetration rate of new energy passenger vehicles in May was 44.2%. Citic Securities said that May's export sales volume fluctuated due to the influence of transportation capacity; the penetration rate of new energy continued to rise, and with the gradual increase in high-quality supply at the Beijing Auto Show this year, the penetration rate of new energy is expected to continue to increase.

Popular fluctuating stocks

1. PC Partner (01263) announced its earnings. As of the close, it rose 27.25%, to HKD 5.09.

PC Partner issued an announcement, expecting that the group will obtain a net profit attributable to shareholders of no less than approximately HKD 150 million during the six months ended June 30, 2024, which is about HKD 20 million more than the same period last year. The main reason is the improvement in gross margin compared to the same period last year.

2. Bilibili -W (09626) was strong throughout the day. As of the close, it rose 18.96% to HKD 144.3.

Bocom International pointed out that since SLG games in three countries have a wide global audience, it may help Bilibili open up overseas markets and enhance brand awareness. The bank expects that the first month's revenue of the "Three Kingdoms" can reach 500-800 million yuan. Assuming the revenue will be amortized over 9 months, it is expected to contribute revenue of 800 million to 1.3 billion yuan in 2024 and increase the annual gaming revenue by 12-20%.

3. Meitu (01357) has rebounded significantly. As of the close, it rose 8.87% to HKD 2.7.

Meitu announced that the company's founder, chairman and CEO, Wu Xinhong, bought 1 million shares of the company at an average price of about HKD 2.48 per share on June 18 in the open market. Wu Xinhong said that he is confident about the company's future business outlook and will not rule out further increasing his holdings of the company's shares at an appropriate time.

4. Techcomp International (09658) fell after its earnings announcement. As of the close, it fell 3.52%, to HKD 12.62.

Techcomp International had revenue of USD 188 million in the first quarter, a year-on-year increase of 16.6%; the net loss attributable to owners of the company was USD 4.457 million, compared to a profit of USD 5.616 million in the same period last year; the loss per share was USD 0.01. The reason was that the net unrealized exchange losses increased by USD 11.2 million due to the devaluation of other currencies against the US dollar, which in turn led to an increase in other losses.