According to the financial news app, Jackson Hole global central bank annual meeting, which is scheduled to be held on Friday is a key focus of market attention. Hong Kong stocks opened high and rose this morning. Among them, the Hang Seng Tech Index performed the strongest, rising nearly 3% at one point during the day. The gains of the three major indices narrowed in the afternoon. At the close, the Hang Seng Index rose 0.8% or 139.41 points to 17,569.57 points, with a total daily turnover of HKD 94.415 billion. The Hang Seng China Enterprises Index rose 1.04% to 6,225.86 points. The Hang Seng Tech Index rose 1.68% to 3,517.09 points.

CITIC Securities pointed out that looking ahead, due to the easing of external disturbances, the characteristics of Hong Kong stocks at the bottom have become prominent, and the background of gradually realizing the difference in performance expectations. The bank determined that active foreign capital will return to the Hong Kong stock market; at the same time, passive foreign capital has a demand to replenish Hong Kong stock positions at the time of the MSCI quarterly rebalancing at the end of August. Therefore, the bank believes that Hong Kong stocks will usher in a monthly valuation repair market, and the internet and consumer industries with higher value and greater differences in performance expectations are more likely to benefit.

Blue chip performance

JD Health (06618) led the blue chips up. At the close, it rose 7.93% to HKD 23.15, with a turnover of HKD 0.447 billion, contributing 3.04 points to the Hang Seng Index. In the first half of the year, JD Health achieved an income of CNY 28.3 billion, a year-on-year increase of 4.55%. It achieved Non-IFRS net income of CNY 2.644 billion, a year-on-year increase of 8.54%. The net profit margin was 9.3%, a new half-year performance high since its listing.

In other blue-chip stocks, Li Ning (02331) rose 7.48% to HKD 14.08, contributing 3.65 points to the Hang Seng Index; Li Auto Inc-W (02015) rose 5.29% to HKD 80.65, contributing 9.03 points to the Hang Seng Index; Zhongsheng Hldg (00881) fell 3.44% to HKD 9.26, dragging the Hang Seng Index down 0.42 points; and OOIL (00316) fell 2.38% to HKD 106.7, dragging the Hang Seng Index down 0.54 points.

Hot sectors

On the trading board, large-cap tech stocks are all up, with JD.com up nearly 4%, Baidu up more than 2%, and Netease, Xiaomi, and Alibaba all up more than 1%. The price of gold surged past USD 2,500, hitting a new high, and the gold stock rose collectively today, while the national railway tender exceeded expectations, and high-speed rail concept stocks were active. The subsidies for replacements of old vehicles have increased, and the auto stocks are generally rising. On the other hand, the results of the Hang Seng quarterly index review were released, and the stocks that were excluded from the Hang Seng Composite Index fell sharply, with Dingdong Health falling over 19% and Yidianyun falling over 18%. The photovoltaic stocks, pork industry concept, and coal industry stocks performed poorly.

1. The gold industrial concept stocks rose collectively. At the close, Lingbao Gold (03330) rose 7.86% to HKD 3.43; Shandong Gold (01787) rose 5.12% to HKD 16.44; Zhaojin Mining (01818) rose 5.05% to HKD 13.72; and China Gold Intl (02099) rose 2.62% to HKD 41.15.

Boosted by expectations of an interest rate cut by the Federal Reserve, spot gold broke through USD 2,500/oz for the first time last Friday, hitting a new historical high again. The current market is focusing on Fed officials, especially Chairman Powell's stance at the central bank's annual meeting. Sinolink Securities research report stated that the timing of the interest rate cut is approaching, and combined with continued geopolitical turmoil, the price of gold is expected to continue to rise. The bank believes that gold company costs have increased less this year, and the probability of a deep correction in the price of gold is small, and the stock price has a basis for repairing towards the price of gold.

2. High-speed rail concept stocks are active. At the close, Times Electric (03898) rose 4.86% to HKD 31.3; CRRC Corporation (01766) rose 3.76% to HKD 5.24; China Railway Signal & Communication Corporation (03969) rose 3.05% to HKD 3.38; and China Railway (00390) rose 1.34% to HKD 3.77.

On August 16, the national railway procurement platform issued a bidding notice, initiating the bidding for the second batch of advanced maintenance of the 2024 EMU, totaling 472.6 sets, including 24 sets of third-level maintenance, 146.6 sets of fourth-level maintenance, and 302 sets of fifth-level maintenance, accounting for 64%. Judging from the quantity, the accumulated number of fifth-level maintenance in the two rounds of bidding this year has exceeded the highest historical number of EMU vehicle tenders. Galaxy Securities pointed out that the second batch of EMU advanced maintenance bidding in 2024 exceeded expectations again. Under the logic of equipment updates, passenger flow recovery, and major maintenance cycles, the rail transit industry has ushered in a new round of prosperity.

Auto stocks generally rose. At the close, Li Auto-W (02015) rose 5.29% to HKD 80.65; Xpeng-W (09868) rose 3.76% to HKD 27.6; NIO-SW (09866) rose 2.79% to HKD 31.3; Geely Auto (00175) rose 1.68% to HKD 7.89.

On August 16th, the Ministry of Commerce and other seven departments issued the "Notice on Further Doing a Good Job in the Work of Replacing Old Vehicles with New Ones", in terms of scrapping and updating vehicles, the subsidy standard has been increased from the original 0.01 million yuan for the purchase of new energy passenger vehicles and 7000 yuan for the purchase of fuel passenger vehicles to 0.02 million yuan and 15,000 yuan respectively, and the subsidy amount has increased by more than twice. Southwest Securities believes that under the background of the opening of the new car cycle, the significant increase in subsidy intensity is expected to further stimulate market demand, providing bullish growth for future auto sales.

Mainland real estate and property management stocks both rose. At the close, China Jinmao (00817) rose 10.17% to HKD 0.65; A-Living (03319) rose 8% to HKD 2.7; China Sino-Ocean Group (02602) rose 5.49% to HKD 20; CIFI Holdings Group (00884) rose 4% to HKD 0.26.

Following Shenzhen's announcement of the purchase of commercial housing for use as indemnificatory apartments, Nanjing City plans to introduce a work plan for purchasing completed but unsold commercial housing for use as affordable housing. At present, it has started to sort out and investigate completed and unsold commercial housing projects, and seek the willingness of real estate development companies to sell. If there are suitable projects, they will be purchased and implemented by state-owned enterprises as required. In addition, it is reported that the storage and purchase policy of Hangzhou, Tianjin, Chengdu, Qingdao and other cities is also under study and formulation.

Sinolink Securities believes that July is traditionally a slow season for the real estate market, and the main indicators of real estate are still bottoming out, and the policy space for demand in the third quarter is expected to further open up. At the same time, the node of storage and purchase is gradually approaching, and several first-tier cities will soon release relevant policy documents for storing and purchasing commercial housing, boosting market confidence.

Hang Seng Index's quarterly review results are out, and related individual stocks have been active. At the close, in terms of rising stocks, Dida Auto Tech (01274) rose 29.25% to HKD 28.5; Lalamove-W (01519) rose 6.17% to HKD 7.23; SF Same City (09699) rose 4.82% to HKD 10.88. In terms of falling stocks, Dingtian Health (09886) fell 19.09% to HKD 0.89; Yidian Yun (02416) fell 18.25% to HKD 1.03; Zhuguang Holdings (01176) fell 17.99% to HKD 0.114.

On August 16th, Hang Seng Index Company announced the results of its regular semi-annual index adjustment, and all changes will take effect from September 9th. Among them, Dida Auto Tech and New Oriental will be included in the Hang Seng China Enterprises Index component stocks; ASMPT will be included in the Hang Seng Technology Index component stocks. In addition, the number of constituent stocks in the Hang Seng Composite Index has increased from 509 to 518, and component stocks include Dida Auto Tech, Hao Tian Intl, China Sino-Ocean Group, Laopu Gold, SF Same City, and 38 other symbols. The Hang Seng Composite Index constituent portfolio will exclude 29 symbols, including COSMOPOL INT L, Xiabuxiabu, Shimao Group, Zhuguang Holdings, Powerlong, Silu Pharma, Alli Intl Ed Le, Chinasouthcity, Junshi Bio, EC Healthcare, Xintong Medical, Shengnuo Medical, Mes Health, Yidian Yun, Sino-Ocean Group, Ningmeng and Dingdang Health.

The Hang Seng Composite Index constituent portfolio will exclude 29 symbols, including COSMOPOL INT L, Xiabuxiabu, Shimao Group, Zhuguang Holdings, Powerlong, Silu Pharma, Alli Intl Ed Le, Chinasouthcity, Junshi Bio, EC Healthcare, Xintong Medical, Shengnuo Medical, Mes Health, Yidian Yun, Sino-Ocean Group, Ningmeng and Dingdang Health.

Popular fluctuating stocks

Yestar Health (02393) soared on volume, with a 84.21% rise to HKD 0.07 at the close.

Yestar Health has announced that the comprehensive unaudited net profit of the group in the middle of 2024 is expected to increase significantly by no less than RMB1.05 billion as compared to the net profit of about RMB11.6 million in the middle of 2023. The main source is due to the confirmation of significant premium from the purchase of redeemable preferred notes of the company at discounted prices; and the reduction of financial costs after redeeming relevant preferred notes.

Holly Futures (03678) rose after its results, up 14.62% to HKD 1.49 at the close.

Holly Futures has announced its performance in the middle of 2024. Its operating income is about RMB1.028 billion, a year-on-year increase of 13%; net profit is RMB12.8007 million, a year-on-year increase of 79.61%; daily average customer equity is RMB8.988 billion, a year-on-year increase of 18.63%; agency turnover is up 63.97%, since June 2024, the parent company's margin scale has remained stable at more than RMB10 billion.

3. Ganfeng Lithium (01772) rose significantly, closing up 4.6% at HKD 17.74.

Ganfeng Lithium announced that its subsidiary, Ganfeng Lithium Battery, has signed a cooperation framework agreement with YIGIT AKU to establish a joint venture in Turkey and invest USD 500 million (CNY 3.583 billion) to build a lithium battery project with an annual output of 5 GWh. Ganfeng Lithium stated that this cooperation is conducive to the company's improvement of its industrial chain layout, core competitiveness and profitability.

4. Minmetals Land (00230) issued a profit warning, down 20.59% to HKD 0.27 at the close.

Minmetals Land issued a profit warning, expected to have a loss of about HKD 1 billion for shareholders in the first half of this year, compared with a profit of about HKD 0.112 billion for shareholders in the same period last year. This is mainly due to a significant decrease in revenue from real estate development business, a significant decrease in gross margin of real estate development business, and provisions for inventory impairment during the period as well as impairment losses recognized based on expected credit loss model.

5. CGN Mining (01164) hit a new five-month low, falling 18.37% to HKD 1.6 at the close.

CGN Mining issued a profit warning, expecting a year-on-year increase of approximately HKD 70 million to HKD 0.1 billion in pre-tax surplus as at the end of June this year, while profit will decrease by HKD 50 million to HKD 80 million over the same period. This is mainly due to the increasingly severe tax environment in Kazakhstan this year and the tightening of the tax policy calibration in practice, posing risks of tax costs increase for the Group in Kazakhstan.