On August 19th, according to Cailian Press, the three major Hong Kong indices collectively closed up and market sentiment recovered with the two consecutive gains in the Hang Seng Index.

Performance of the Hang Seng Index

The Hang Seng Index rose by 0.80%, closing at 17569.57 points; the Technology Index rose by 1.68%, closing at 3517.09 points; the State-owned Enterprise Index rose by 1.04%, closing at 6225.86.

Today's Market

Looking at individual stocks, autos and gold stocks led the gains, while gaming and financial sectors were active. However, the energy sector, including coal, electric power, and oil, was weak.

Expectations of a rate cut pushed up gold prices, and gold stocks accelerated their ascent.

Among gold stocks, Lingbao Gold (03330.HK) rose nearly 8%, and SD Gold (01787.HK) and Zhaojin Mining (01818.HK) both rose more than 5%.

On the news front, the international gold price broke the $2,500/ounce level last Friday and is still hovering above that price point.

Furthermore, as the market's expectations for a rate cut by the Federal Reserve continued to strengthen, institutions predict that gold prices are likely to rise again starting in the fourth quarter, and short-term gold stock popularity is gathering.

Further boosting subsidies for automobile purchases may help to strengthen passenger vehicle sales.

Among auto stocks, Li Auto Inc-W (02015.HK) rose more than 5%, XPeng Inc-W (09868.HK) rose nearly 4%, and NIO Inc-SW (09866.HK) rose nearly 3%.

On August 16th, the Ministry of Commerce and 7 other departments issued a notice saying they will further promote the work of replacing old cars with new ones, with the subsidy standards significantly increased.

Specifically, in terms of scrapping and updating vehicles, the subsidy standards for purchasing new energy passenger vehicles have been raised from the original 10,000 RMB to 20,000 RMB, and from 7,000 RMB to 15,000 RMB for purchasing fuel passenger vehicles, both increasing by more than double.

In addition, data shows that in July, 0.878 million new energy passenger cars were sold, up 36.9% year-on-year and up 2.8% month-on-month, with a penetration rate of 51.1%, the first time that monthly retail sales of new energy passenger cars in China have surpassed those of fuel passenger cars.

Energy stocks are falling behind with coal, electric power, and other energy industries collectively declining.

Among energy stocks, Yankuang Energy (01171.HK) fell by more than 1%, and China Shenhua Energy (01088.HK), CLP Holdings (00002.HK), and other leading companies all closed lower.

According to Sealand Securities research reports, recent downgrades in earnings by some coal stocks and some institutions' wait-and-see attitudes towards coal prices, coupled with recent bearish expectations in the international crude oil market demand, may have a temporary impact on energy prices.

In addition, the clean energy and green energy concepts have been relatively active in the market, which has caused a diversion from traditional energy stocks on the capital front.

Southbound funds.

As of the close, the net outflow of capital from Southbound funds was unexpectedly large, at 6.177 billion Hong Kong dollars, and did not form a joint force with the rebound in the Hang Seng Index, instead showing a tendency to reduce holdings on highs.

Individual stocks are fluctuating.

[Knowing the Ideal Car Technology is included in the Hang Seng Index, it surged nearly 30% in a single day]

Zhihang Automotive Technology (01274.HK) rose 29.25% today. According to the latest quarterly review results released by the Hang Seng Index Company, the company was selected and will be included in the Hang Seng Index series of component stocks, effective from September 9, 2024. The board of directors expects the inclusion to help improve the liquidity of the company's stock trading.

In addition, Zhihang Automotive Technology previously announced its interim performance, with revenue of 0.636 billion yuan, a year-on-year increase of 17.11%; gross profit was 44.852 million yuan, a year-on-year increase of 9.29%.

Minmetals Land (00230.HK) is expected to report a loss of over 1 billion yuan in the first half of the year, and its stock price fell more than 20%.

Minmetals Land fell 20.59% today, ranking at the forefront of the stock price decline list. The company previously issued a warning announcement, expecting a net loss of approximately 1 billion yuan in the first half of the year, a loss compared to profit from the same period last year.

It is worth noting that according to a report from CRIC Real Estate Research, the transaction volume of first and second-hand houses continued to weaken month-on-month in the first half of August, which is bearish for the real estate sector in the short term.

Specifically, the total transaction volume of new houses in 30 cities decreased by 21% compared to the same period in July, and the total transaction volume of second-hand houses in 15 cities decreased by about 28%. Compared with the same period last year, the overall transaction volume of new houses maintained negative growth, while second-hand houses maintained a slight positive growth. CRIC Real Estate expects that the transaction volume of new and second-hand houses in August will be less than that of July, and it will still fall by about 10% month-on-month.