Benefiting from the rate cut, the three major indexes of the Hong Kong stock market rose collectively today. At the close, the Hang Seng Index rose 1.25% to close at 17,635.88 Hong Kong dollars; the technology index rose 2.10% to close at 3,610.71 points; and the China Enterprises Index rose 1.44% to close at 6,253.94 points.

Note: The performance of Hang Seng Tech Index.

The rate cut stimulated the market to rebound.

Today's rebound in the Hong Kong stock market is related to the rate cut. According to the official website of the People's Bank of China, the central bank updated the table of loan facilities rates, and as of July 22, 2024, the overnight, 7-day and 1-month loan facilities rates were adjusted to 2.55%, 2.70% and 3.05%, respectively, all down by 10 basis points. In addition, according to the latest research report by Citic Securities, the position of active equity funds in Hong Kong stocks has increased compared to the first quarter of this year. According to Wind data, the allocation of public funds to Hong Kong stocks in the second quarter of this year increased by 1% to 5.7% compared with the previous quarter.

Moreover, according to the latest research report by HTSC, the position of active equity funds in Hong Kong stocks has increased compared to the first quarter of this year. According to Wind data, the allocation of public funds to Hong Kong stocks in the second quarter of this year increased by 1% to 5.7% compared with the previous quarter.

Today's Market

From the perspective of individual stock performance, most education, Internet and pharmaceutical stocks have risen, and crypto ETFs have also risen. However, oil and catering stocks have fallen the most.

Most education stocks rebounded, and Virscend Education rose more than 15%.

In the education sector, Virscend Education (01565.HK), New Oriental-S (09901.HK) and Scholar Edu(01769.HK) rose 15.22%, 8.66% and 2.05%, respectively.

Note: The performance of education stocks.

In terms of news, New Oriental topped the list. The company will hold a conference on Tuesday, July 30, 2024 to announce the unaudited performance for the three months ending May 31, 2024. Swhy maintains a buy rating on New Oriental, with expected revenue of $1.178 billion in the fourth quarter of the 2024 fiscal year (March to May 2024), a year-on-year increase of 36.9%.

Internet stocks rebounded, and Meituan rose more than 3%.

Among Internet stocks, Meituan-W (03690.HK), Tencent Holdings (00700.HK) and Baidu Group-SW (09888.HK) rose 3.23%, 2.53% and 1.47%, respectively.

Note: Internet stocks' performance.

In addition to the rate cut mentioned at the beginning, Hong Kong Internet stocks continue to rebound, thereby boosting market confidence. According to statistics, 186 listed companies in Hong Kong launched share buybacks in the first half of this year, an increase of 64.6% from the same period last year; the cumulative repurchase of 4.717 billion shares, with a total repurchase amount of 126.497 billion Hong Kong dollars, an increase of 162.41% year-on-year from the same period last year.

Taking Tencent as an example, the company has repurchased a total of HKD 52.3 billion in the first half of this year, exceeding the total repurchase amount of HKD 49.4 billion for the entire year of 2023. Among them, the single-quarter repurchase amount reached HKD 37.5 billion in the second quarter, doubling from HKD 14.8 billion in the first quarter. The daily repurchase amount in the second quarter was HKD 0.987 billion, setting a new record for the same period in history.

Some biomedical stocks have also risen, and Kexing Biotech has risen nearly 6%.

In the biomedical sector, Kexing Biotech-B (06990.HK), Aushen Medicine-B (06855.HK), and Cojoya Pharma-B (02171.HK) rose 5.92%, 3.53%, and 3.09%, respectively.

Note: The performance of biomedical stocks.

In terms of news, CMB International released a research report stating that it is optimistic about the rebound of the pharmaceutical industry, mainly due to the effective stimulation of procurement demand due to the update of medical device policies, the imminent implementation of support policies for innovative drug devices going overseas; providing growth momentum, the overseas market for innovative medical equipment is growing rapidly, and the authorization of innovative drug out-licensing transactions is expected to continue to be implemented; and long-term investment opportunities in GLP-1, ADC, and other areas.

Most crypto ETFs have risen, and CSOP Bitcoin rose nearly 6%.

Among the crypto ETFs, CSOP Bitcoin (03439.HK), Bosera Bitcoin (03008.HK), and Huaxia Bitcoin (03042.HK) rose 5.64%, 5.39%, and 4.88%, respectively.

Note: Performance of crypto ETF.

As for the news, Crypto ETFs have benefited from the 'Trump trade.' As Martin Leinweber, MarketVector's Director of Digital Asset Research & Strategy, pointed out, rising support for Trump in the presidential election has favored risky assets such as Bitcoin. As of the time of writing, Bitcoin rose 0.37%, at 0.0489 million dollars.

OPEC+ production increase plan causes oil prices to fall and Sino Oil & Gas falls over 4%.

In petroleum stocks, Sino Oil & Gas (00702.HK), Shanghai Petrochemical Co., Ltd. (00338.HK), and PetroChina Co., Ltd. (00883.HK) fell by 4.05%, 0.92%, and 0.56%, respectively.

Note: Performance of petroleum stocks.

As for the news, OPEC+ has confirmed its Q4 production increase plan. Some OPEC+ representatives revealed that the organization has agreed to increase production starting in October, gradually restoring about 2.2 million barrels per day of suspended crude oil production, and representatives do not think that the August meeting will change this production increase plan.

Most dining stocks fell and Jiu Mao Jiu fell more than 10%.

In dining stocks, Shanghai XNG (03666.HK), Jiumaojiu (09922.HK), and Nayuki’s (02150.HK) fell by 11.54%, 10.26%, and 4.57%, respectively.

Note: The performance of dining stocks.

As for the news, Jiumaojiu fell the most. The company expects to generate a net profit of no less than 67 million yuan in the first half of the year, a drop of no more than 69.8% from the same period in 2023. At the same time, Jiumaojiu also announced its second-quarter operating performance, with Taier, Sōng hot pot, and Jiumaojiu's turnover rates being 3.6, 2.8, and 2.6, respectively, and customer average spending being 69 yuan, 104 yuan, and 55 yuan, respectively.

It is worth noting that Jefferies Financial lowered its target price for Jiumaojiu from 8 Hong Kong dollars to 4.1 Hong Kong dollars and downgraded the rating from 'buy' to 'hold' on the eve of Jiumaojiu's release of its interim results.

Southbound funds.

Today, Southbound funds bought 3.692 billion Hong Kong dollars again. Since the beginning of this year, they have bought nearly 380.4 billion Hong Kong dollars in total.

Note: Performance of Southbound funds

News and fluctuations in individual stocks.

[CITIC Securities rises nearly 3%, and reform signals help improve expectations] CITIC Securities (06030.HK) rose 2.94% to close at 11.94 Hong Kong dollars. In terms of news, GF Securities pointed out that the Third Plenary Session of the 19th Central Committee has released new signals for deepening reforms, which will help improve expectations for the capital market. Currently, the performance and regulatory pressures of securities companies are gradually easing, the market's pessimistic sentiment is being released, the valuation and fund holdings of the securities industry are both low, and the industry's stagnating valuation repair space can be expected. We suggest paying attention to the differentiated performance of individual stocks approaching the interim performance report, and suggest continuing to focus on the main line of mergers and acquisitions driven by policies and events.

[Xiaomi Group rises over 4%, is expected to complete the full-year delivery target of 0.1 million vehicles in November] Xiaomi Group-W (01810.HK) rose 4.24% to close at 17.22 Hong Kong dollars. As for the news, the company stated that Xiaomi SU7's production capacity has increased, and deliveries have accelerated smoothly. So far, it has delivered over 0.03 million units and is expected to complete the full-year delivery target of 0.1 million vehicles in November.

Xiaomi Group rose more than 4%, and is expected to complete the annual delivery target of 0.1 million vehicles in November ahead of schedule.