A survey by Guoyuan International suggests that although the Hong Kong stock market still lacks long-term support for stable growth, the pressure on Hong Kong stock market is relatively light as the current interest rate hike in the United States has ended and the overall risk appetite of overseas markets has increased. In addition, the current domestic economy has some "deleveraging" characteristics, especially the leverage willingness of the household sector is weakly affected by factors such as real estate, which is expected to become an important support for the recovery of confidence in leveraged positions in society in the future market.

Mengniu Dairy (02319) led the blue chips. At the close of trading, it rose 4.5%, or HKD 13.94, with a turnover of HKD 503 million, contributing 3.08 points to the Hang Seng Index. Mengniu Dairy and DaKa International Food Co., Ltd. (a subsidiary of Mixuebingcheng, owned by Mengniu Dairy) strategic cooperation negotiations were held in Jiaozuo City, Henan, recently. The two sides reached a number of strategic cooperation intentions, including agreement on the production of raw materials such as pasteurized milk, milk powder, and large bags of milk.

Blue chip performance

As for other blue-chip stocks, Hansoh Pharma (03692) rose 4.24%, or HKD 16.72, contributing 1.3 points to the Hang Seng Index; Longfor Group (00960) rose 2.87%, or HKD 11.46, contributing 1.24 points to the Hang Seng Index; SMIC (00981) fell 4.34%, or HKD 17.2, dragging down the Hang Seng Index by 5.24 points; and Ali Health (00241) fell 3.77%, or HKD 3.32, dragging down the Hang Seng Index by 1.36 points.

On the market, large technology stocks rose and fell, with Meituan rising over 1%, and Alibaba, Baidu, Tencent, and others all seeing gains; industry policies are marginally improving, with most education stocks rising today; new housing and second-hand housing turnover improved month-on-month, and mainland real estate stocks generally rebounded; new energy penetration rate in June is expected to reach nearly 50%, and new energy vehicle stocks were active. On the other hand, Nvidia plummeted 6.7% overnight, with semiconductor stocks continuing to fall; Apple concept stocks, Bitcoin concept stocks, and others all fell.

Hot sectors

1. Semiconductor stocks continued to fall. At the close of trading, Hua Hong Semiconductor (01347) fell 6.22% to HKD 21.85; SMIC (00981) fell 4.34% to HKD 17.2; and Shanghai Fudan Microelectronics (01385) fell 2.12% to HKD 12. 2. Bitcoin concept stocks fell all day. At the close of trading, OSL Group (00863) fell 13.39% to HKD 5.24; Meitu (01357) fell 3.37% to HKD 2.58; and Linekong Interactive (08267) fell 1.43% to HKD 0.345.

Hong Kong stock indexes rose collectively in early trading before falling back, with the afternoon's decline further widening. The Hang Seng Technology Index fell by 1.39% at one point; the index fluctuated back up in the afternoon, with the Hang Seng Index and the Hang Seng China Enterprises Index turning red one after another towards the end of the session. At the close of trading, the Hang Seng Index rose 0.25% or 45.19 points to 18,072.9 points, with a total daily turnover of HKD 93.743 billion; the Hang Seng China Enterprises Index rose 0.36% to 6464.49 points; and the Hang Seng Technology Index fell 0.6% to 3655.46 points.

Nvidia plunged 6.7% overnight, marking its largest one-day decline in two months and falling for three consecutive trading days, with a cumulative decline of nearly 13%, evaporating about $430 billion of market value. A research report from Tianfeng Securities points out that the current industry cycle is currently in the lower range, and the bank believes that in the short term, sensitivity to changes in demand should be increased, and the varieties that are priorities to recover are expected to improve their financial statements first. In terms of innovation, it is expected that artificial intelligence/satellite communication/MR will be major industrial trends, and individual stocks in the industrial chain are expected to continue to reflect thematic opportunities in line with the progress of technological innovation.

Other blue-chip stocks, Hansoh Pharma (03692) rose 4.24%, or HKD 16.72, contributing 1.3 points to the Hang Seng Index; Longfor Group (00960) rose 2.87%, or HKD 11.46, contributing 1.24 points to the Hang Seng Index; SMIC (00981) fell 4.34%, or HKD 17.2, dragging down the Hang Seng Index by 5.24 points; and Ali Health (00241) fell 3.77%, or HKD 3.32, dragging down the Hang Seng Index by 1.36 points.

Bitcoin experienced its second-largest weekly decline since 2024, falling below $60,000 last night for the first time since May 3rd, with a 24-hour decline of over 7%. Earlier, the US Bitcoin ETF was hit by six consecutive days of net outflows. Analysts pointed out that in addition to the risk of increased supply, the deeper reason for Bitcoin's deeper adjustment may be that investors are re-evaluating the attractiveness of cryptocurrencies relative to other investments.

3. Apple concept stocks fell across the board. At the close, Sunny Optical (02382) fell 3.45% to HKD 47.55, Q-Tech (01478) fell 2.64% to HKD 4.05, and BYD Electronics (00285) fell 2.6% to HKD 37.45.

According to the Star Daily, Apple has reportedly requested its assembly plants to reduce the workforce on iPhone assembly lines by 50% over the next few years as part of its goal to increase automation in production. In addition, on the 24th local time, the European Commission preliminarily ruled that the US Apple's online app store rules violated the EU's Digital Markets Act and launched a new investigation against Apple. Under the Digital Markets Act, if there is a breach, the European Commission can impose fines on Apple, with a maximum fine of 10% of the company's global total revenue.

4. Most education stocks rose. At the close, New Oriental-S (09901) rose 5.06% to HKD 59.2, Beststudy Edu (03978) rose 4.62% to HKD 3.4, and China Kepei (01890) rose 4% to HKD 1.56.

According to a research report by SD-Securities, it emphasizes three investment mainlines for the education industry: (1) extracurricular training: policy marginal optimization, expansion speeding up, strong demand, supply clearing, suggested focus on: Scholar Educational, Beststudy Edu in Hong Kong, New Oriental, Tal Education in the US; (2) recruitment training: the number of people taking the public examination is increasing rapidly, and changes in exam time will not change the medium and long-term high prosperity, suggested focus on: Pencil in Hong Kong; (3) stable growth and high dividends: Zhongjiao Holdings and New Higher Education Group in Hong Kong.

5. New energy vehicle stocks rose across the board. At the close, Great Wall Motors (02333) rose 4.01% to HKD 12.46, NIO-SW (09866) rose 2.84% to HKD 34.45, and Lingpao Auto (09863) rose 2.51% to HKD 26.55.

According to the China Association of Automobile Manufacturers, in May 2024, new energy vehicle production and sales reached 940,000 and 955,000 respectively, up 31.9% and 33.3% year-on-year, with a market share of 39.5%. In addition, according to the prediction of the China Passenger Car Association, the June narrow passenger car retail volume will be about 1.75 million, up 2.3% from the previous year; it is estimated that the retail volume of new energy passenger cars will be about 860,000, up 6.9% from the previous year, and the penetration rate of new energy will reach 49.1%. Tianfeng Securities believes that under the leadership of the Central Finance and Economics Commission, the policy of exchanging old cars for new ones has stimulated demand and corrected pessimistic expectations.

Popular fluctuating stocks

1. Chinese Estates (00127) soared on heavy volume and closed up 28.23% at HKD 1.59.

According to CCASS data, on June 19, 231 million shares or 12.1% of Chinese Estates shares were deposited into CCASS and transferred to BNP Paribas positions, valued at approximately HKD 263 million at the closing price of HKD 1.14. According to the annual report, Liu Luanxiong and Chen Kaiyun jointly hold nearly 75% or about 1.431 billion shares of Chinese Estates, including 231 million shares held through Joseph Lau Luen Hung Investments Limited, which is consistent with the number of shares in the deposit on that day.

9. Henlius (02696) rose strongly all day, closing up 19.43% at HKD 22.5.

Fosun Pharma announced that it proposes to privatize Henlius by way of absorption and merger, with a cash cancellation price of HKD 24.6 per H-share, a premium of 30.57% over the pre-suspension price of Henlius. After the conditions are met, Henlius will apply to the Stock Exchange for the voluntary withdrawal of the H shares' listing status.

3. Want Want China (00151) rose after earnings, closing up 5.5% at HKD 4.41.

Want Want China released its annual results for the year ending March 31, 2024, with revenue of RMB 23.586 billion, up 2.9% YoY; net profit attributable to equity holders of the company was RMB 3.99 billion, up 18.4% YoY; a final dividend of 3.3 US cents per share is proposed for distribution.

4. PC Partner Group (01263) plunged, closing down 12.25% at HKD 4.44.

PC Partner Group issued a statement that rumors have recently circulated on a certain social media platform that the company may withdraw from the Hong Kong stock market through privatization. The board of directors hereby clarifies that even if the board of directors decides to propose withdrawal from the stock market, the company has no intention of privatizing the company.