Despite the continued downward trend of the Hong Kong stock market, there was a surge during the last trading session, with the Hang Seng Index and the Chinese Enterprises Index both reversing their losses. At the close, the Hang Seng Index rose by 0.25% to close at 18072.9 points, the technology index fell by 0.60% to close at 3655.46 points, and the Chinese Enterprises Index rose by 0.36% to close at 6464.49 points.

It is worth noting that the Hang Seng Index fell below 18,000 points in yesterday's trading, but fortunately the three major indices narrowed their losses in the last trading session. At the close, the Hang Seng Index remained flat, the technology index fell by 0.65%, and the Chinese Enterprises Index rose by 0.02%.

In response to the recent volatility of the Hong Kong stock market, China Galaxy Securities has stated in a recent research report that the expected positive policy on the mainland in the second half of 2024 will benefit the Hong Kong stock market, and the upward trend is expected to be maintained, with a focus on positive signals from the Fed's monetary policy and domestic fundamentals.

Meanwhile, a strategy analyst at Swiss Baosheng China pointed out that, given the current economic situation, stocks with low debt and strong cash flow are preferred. In terms of sectors, consumer stocks with low prices are bullish. The target for the Hang Seng Index in the next 12 months is maintained at 19500 points.

Today's Market

Despite the overall weakness of the three major Hong Kong stock indices, some individual stocks have risen, such as sporting goods, alcoholic beverages, autos, real estate, and education.

Boosted by multiple bullish signals, Topsports led the way in sporting goods stocks.

Among the sporting goods stocks, Topsports (06110.HK), Xtep International (01368.HK) and Li Ning (02331.HK) rose by 4.06%, 2.31% and 0.79% respectively.

Guotai Junan Securities pointed out that the May Clothing Social Consumption data showed a slight improvement in retail sales at the end of the line. In addition, with the performance of the '618' promotion, head brand maintained an advantageous position overall. It is expected that the industry will concentrate further on head brands in the future. In addition to the arrival of summer, a rise in sports and outdoor activities, and the catalysis of the Paris Olympics, the sports and outdoor and sun protection clothing/equipment categories are expected to benefit more.

Maotai's price stabilization boosted the market, and Dynasty Wines rose more than 15%.

Among alcoholic beverage stocks, Dynasty Wines (00828.HK), Tsingtao Brewery (00168.HK), and Zhenjiu Lidu (06979.HK) rose by 15.09%, 2.10%, and 2.09% respectively.

In terms of news, the latest reference price for liquor revealed today shows that the wholesale reference price for 24-year-old Feitian Moutai in bottles has risen from 2080 yuan the previous day to 2150 yuan. The wholesale reference price for a box of 24-year-old Feitian Moutai has risen to 2450 yuan/bottle, compared to 2420 yuan/bottle yesterday.

It is worth noting that after the wholesale reference price for 24-year-old Feitian Moutai in bottles fell to 2080 yuan yesterday, it was reported that Moutai will cancel the release of 12 bottles of Feitian Moutai and the opening of Feitian Moutai boxes. In addition, it was reported that aged Moutai and premium Moutai will also be temporarily suspended from shipment.

A Moutai dealer in a western province confirmed that the sales company has just been notified that the big box of Moutai will be cancelled, but there is still inventory available for purchase. "There is only the regular 6-box left." In addition, he said that aged Moutai and premium Moutai will be temporarily suspended from being released.

Most auto stocks rose as institutions say the price war is easing.

Among auto stocks, Great Wall Motor (02333.HK), Nio Inc-SW (09866.HK), and Leap Motor (09863.HK) rose by 4.01%, 2.84%, and 2.51% respectively.

On the news side, Citigroup pointed out in its June 24 research report that the price war in China's new energy vehicles is expected to ease from the second half of the year and will be concentrated among a few large manufacturers rather than all automakers.

Meanwhile, the National Development and Reform Commission and other departments recently issued measures to create new consumer scenes and foster new growth points for consumption. Among them, the expansion of new automobile consumption scenarios is proposed. Encouraging cities with purchase restrictions to relax vehicle purchase restrictions and increase the allocation of vehicle purchase indicators. Through the linkage of central finance and local governments, funds will be arranged to support the scrapping and updating of old vehicles that meet the conditions. Encouraging eligible localities to support automobile replacement and updating.

Continuous beneficial real estate policies boosts Shimao Group's gains by nearly 4%.

Among real estate stocks, Midea Real Estate (03990.HK), Longfor Group (00960.HK), and Shimao Group (00813.HK) rose by 3.77%, 2.87%, and 2.70%, respectively.

In terms of news, the Ministry of Housing and Urban-Rural Development and the China Banking and Insurance Regulatory Commission jointly held a training videoconference on the policy of guaranteeing the delivery of houses on June 24th, pointing out that, to further tap the role of the urban real estate financing coordination mechanism and better meet the reasonable financing needs of urban real estate projects, local governments, real estate companies, and financial institutions should take responsibility; improve the mechanism composition, improve project promotion feedback management, and increase project repair efforts; strengthen the review of the "white list"; guide banks to provide financing support; and summarize and promote experience.

Karl Choi, head of real estate research at Bank of America's Greater China region, said recently that he expects the real estate sales of the top 100 domestic developers to stabilize next year. He also said that as the real estate market gradually recovers, the rise of individual real estate stocks has been faster than he expected, so he will be more picky in the selection of real estate stocks. However, from a long-term perspective, he is still optimistic about the entire real estate industry.

Education stocks rebound, New Oriental (09901.HK) up more than 5%.

Among education stocks, New Oriental-S (09901.HK), China Edu Group (00839.HK), and Mapleleaf Edu (01317.HK) rose by 5.06%, 2.19%, and 1.67%, respectively.

In terms of news, recent research reports from Huaxi Securities point out that the policy has relatively bottomed out, and it is one of the more certain investment directions. The profit improvement brought by supply clearing is expected to continue, and the growth rate of summer enrollment remains fast. Galaxy Securities also expressed that the trend of the industry with policy optimization and supply-demand resonance is determined, the leading enterprises in compliance with stock have successfully completed business transformation, and with brand and teaching research advantages, they have returned to the expansion trend, and performance is expected to accelerate.

Southbound funds.

Today, southbound funds bought a net amount of HKD 323 million. Since the beginning of this year, the cumulative total purchase amount has approached HKD 328.1 billion.

News and fluctuations in individual stocks.

PC Partner (01263.HK) fell by 12.25%, closing at HKD 4.40. According to the announcement, PC Partner clarified the rumors that the company may go private and cancel its listing status on the Hong Kong Stock Exchange. The company's board of directors explicitly stated that even if it is considered to delist, it has no intention of going private.

Changjia Group (06959.HK) rose by 20.76%, closing at HKD 73.3. In terms of news, on June 19, the Hong Kong Securities and Futures Commission issued a notice that the company's equity is highly concentrated. Affected by this news, the company fell by more than 70% on the 20th.

Changjiu Shares rose nearly 21%, previously named by the Hong Kong Securities and Futures Commission for highly concentrated equity.

Changjiu Shares (06959.HK) rose by 20.76%, closing at HKD 73.3. In terms of news, on June 19th, the Hong Kong Securities and Futures Commission issued a notice warning of the company's high concentration of equity. As a result, the company fell by more than 70% on the 20th.