Federal Reserve Chairman Powell pointed out that progress has been made in combating inflation, but greater confidence is needed in achieving sustainable retreat to the 2% target before easing is undertaken. The Hang Seng Index followed the overseas trend this morning (3rd), testing the 18,000-point mark, opening 72 points higher, rising 248 points in early trading to a high of 18,017 points, and closing at 17,978 points at midday, up 209 points or 1.18%; The Hang Seng Tech Index rose 88 points or 2.51%, closing at 3,627 points. The total turnover of the market in the morning was HKD 65.413 billion, with net inflows of HKD 2.227 billion and RMB 2.359 billion for Southbound trades of the Shanghai, Shenzhen, and Hong Kong Stock Connects.
Technology stocks generally rose, with Alibaba-SW (09988.HK) repurchasing a total of 613 million shares last quarter, with a planned balance of USD 26.1 billion, and the stock price rising 2.9% in half a day. Tencent (00700.HK) rose 1.5%, Baidu-SW (09888.HK) rose 3.2%, Meituan-W (03690.HK), JD-SW (09618.HK), Kuaishou-W (01024.HK), Bilibili-W (09626.HK), and Xiaomi-W (01810.HK) each rose 1.9% to 2.9%. Sino Biopharmaceutical (00020.HK) rose 13.8% in half a day. NetEase-S (09999.HK) edged down 0.1%.
Auto stocks continued to be speculated on, with Brilliance Auto (01114.HK), Ideal World (02015.HK), and NIO-SW (09866.HK) rising by about 4% to 5%, Geely (00175.HK), and Xiaopeng-W (09868.HK) each rising more than 2%. BYD (01211.HK) rose 0.5%, Great Wall Motor (02333.HK) rose 0.3%, and BAIC Motor (01958.HK) rose 7.9%, with its co-developed car model with Huawei, BAIC Bluepark New Energy Technology (600733.SH), already in production. However, Evergrande Vehicle (00708.HK) fell 1.3%.
In terms of financial stocks, HSBC (00005.HK) rose 0.5% in half a day, Hong Kong Exchanges and Clearing (00388.HK) rose 0.6%, AIA (01299.HK) rose 1.2%, and China Life (02628.HK) rose 1.4%. Among local property stocks, Wharf REIC (01997.HK) rose 5.2% and Shanghai New World (00017.HK) rose 3.9%. Gaming stocks Sands China (01928.HK) and Galaxy Entertainment (00027.HK) rose nearly 4% and 2.3%, respectively.
Daiwa believes that contract sales of Hang Seng Index developers improved month on month in June and still prefers R&F Properties (01109.HK) and Yuexiu Property (00123.HK), which rose 4.2% and 6.7%, respectively. China Overseas (00688.HK) also rose nearly 5%. S&P pointed out that Longfor Properties (00960.HK) has liquidity-driven active management of liabilities, and short-term refinancing risks are limited, with Longfor rising 3.6% in half a day.
In terms of individual stocks, Bosideng (03998.HK) chairman plans to allow a 9.6% discount on the sale of 400 million shares, and the stock price fell 15.5% in half a day. In addition, the mainland has recently launched a number of stimulus measures for the tourism industry, and China Tourism Group Duty Free Corporation (01880.HK) rose 14.6%. As for JD Health (06618.HK), it rose 5.3% and was the best blue-chip stock performer. BYD Electronic (00285.HK) fell 1.6% and was the worst blue-chip stock performer.