According to the Futu News app, Hong Kong's three major stock indexes rebounded today, with further gains in the afternoon. Hang Seng Index showed the best performance, rising over 2% at the end of the day. As of the close, Hang Seng Index rose 1.44% or 249.99 points to 17641 points, with a total daily turnover of 97.408 billion Hong Kong dollars; Hang Seng China Enterprises Index rose 1.34% to 6224.24 points; Hang Seng Tech Index rose 2.16% to 3508.61 points.

Galaxy Securities pointed out that internet companies' performance is boosting market confidence. With the approach of the Fed's rate cut, attention should be paid to the technology sector that benefits from rate cut expectations, especially the sub-industries with expectations of improvement in both the denominator and numerator. In the medium and long term, the fundamentals of the Hong Kong stock market rely more on the domestic economy, so pay attention to positive signals from domestic policies.

Blue chip performance

Xiaomi Group-W (01810) led the blue chip stocks. At the close, it rose 9.02% to HK$19.1, with a turnover of 8.19 billion Hong Kong dollars, contributing 44.38 points to the Hang Seng Index. Citigroup research report stated that Xiaomi's second-quarter performance exceeded expectations. The management emphasized that the company's smartphone market share continues to grow in various regions, and the growth of IoT shipments, average selling price, and profit will be a long-term trend.

As for other blue chip stocks, AIA Group (01299) rose 5.93% to HK$54.45, contributing 55.51 points to the Hang Seng Index; OOIL (00316) rose 5.61% to HK$114.8, contributing 1.27 points to the Hang Seng Index; Xinyi Solar (00968) fell 2.83% to HK$3.09, dragging down the Hang Seng Index by 0.69 points; Sunny Optical Technology (02382) fell 1.52% to HK$48.5, dragging down the Hang Seng Index by 0.87 points.

Hot sectors

On the market, large tech stocks were mostly up, with JD.com rising over 3%, Netease and Alibaba both rising over 2%. The continuous implementation of the appliance replacement policy has led to a general increase in home appliance stocks; in July, the total electricity consumption increased by 5.7% year-on-year, leading to a rise in electric power stocks. New energy vehicle stocks, insurance stocks, and shipping stocks performed well. On the other hand, the pressure of declining volume and price in the real estate market continues, and Mainland real estate stocks continue to weaken; CRO concept stocks, vocational education stocks, pharmaceutical stocks, and beer stocks have all declined.

1. Mainland real estate stocks continue to be weak. At the close, Zhongliang Hldg (02772) fell by 3.03%, to HK$0.096; China Vanke (02202) fell by 2.84%, to HK$3.76; R&F Properties (02777) fell by 2.6%, to HK$0.75; Yuexiu Property (00123) fell by 1.9%, to HK$4.12.

Recently, Hong Kong-listed real estate companies have successively disclosed performance forecasts for the first half of the year, most of which are facing losses or expanding losses. Specifically, Zhenro PPT is expected to have a loss of between 2.2 billion yuan to 2.4 billion yuan for the first half of the year, while the loss for the first half of 2023 is approximately 1.464 billion yuan; Zhongliang Hldg's year-on-year loss for the first half of the year exceeded 1.5 billion yuan; Sunac, Powerlong, rsun ppt and other real estate companies have issued profit warnings.

In addition, Cai Xing Securities pointed out that, with the concentrated release of previous demand and the impact of high temperatures since August, housing demand has seasonally declined recently. Last week (August 12th-18th), the sales of commercial residential properties continued to weaken, with a 3.74% decrease in the transaction area for commercial residential properties in the 30 major cities, a 29.44% decrease compared to the same period last year.

2. CRO concept stocks declined the most. At the close, Tigermed (03347) fell by 5.14%, to HK$28.6; Pharmaron (03759) fell by 3.74%, to HK$8.24; Wuxi Apptec (02359) fell by 1.41%, to HK$31.55; Asymchem Laboratories (06821) fell by 1.13%, to HK$39.55.

Xiangcai Securities research report pointed out that the current period is in the period of intensive disclosure of semi-annual reports. From the already disclosed annual reports, CRO companies are generally under pressure due to the decline in investment and financing in the pharmaceutical industry, but some CRO companies are optimistic about the improvement of the pharmaceutical investment and financing situation. According to Pharma Block Sciences' annual report quoting data from the Pharmaceutical Industry Magic Cube: In the first half of 2024, there were a total of 412 financing events in the global innovative drug field, a year-on-year decrease of 12.5%; in terms of the financing amount, the total global financing amount was 15.161 billion dollars, a year-on-year increase of 15.3%. Overseas innovative drug investment has gradually shown an upward trend.

3. Home appliance stocks generally rose. At the close, TCL Electronics (01070) rose by 4.93%, to HK$4.68; Haier Smarthome (06690) rose by 3.49%, to HK$23.7; Skyworth Group (00751) rose by 1.44%, to HK$2.81; Hisense Ha (00921) rose by 0.82%, to HK$19.72.

Following the notice issued by the National Development and Reform Commission and the Ministry of Finance on 'Several Measures to Vigorously Support Large-scale Equipment Renewal and the Replacement of Consumer Goods with New Ones' on July 25th, regions across the country have gradually begun to implement the above-mentioned policies. According to announcements from various provincial departments of commerce, Hubei Province has already issued detailed rules for the implementation of the replacement of consumer goods with new ones (draft for soliciting opinions), Qinghai Province has issued relevant notices, Henan Province has begun to select service platforms for the replacement of consumer goods with new ones, and Tianjin Municipality has started to select units to organize subsidies for the replacement of consumer goods with new ones.

In addition, in July, the retail sales of consumer electronics in China decreased by 2.4% year-on-year, with a narrower decline on a month-on-month basis. However, exports continued to grow at a high rate, with exports of consumer electronics in China increasing by 16.8% year-on-year, including a 45.4% increase in the export of air conditioners, maintaining strong growth. Guosen Securities pointed out that the retail sales of consumer electronics in July showed signs of stabilization. With the continuous implementation of the policy of replacing old appliances with new ones in various regions, the demand for retail sales of consumer electronics is expected to experience a significant recovery.

4. Electric power stocks rose in the afternoon. As of the close, CGN Power (01816) rose by 5.31% to HKD 3.57; Huadian Power International Corporation (01071) rose by 4.28% to HKD 4.14; China Resources Power (00836) rose by 1.58% to HKD 22.5; China Power (02380) rose by 0.87% to HKD 3.48.

According to information released by the National Energy Administration on the 22nd, the total electricity consumption in the whole society in July was 939.6 billion kilowatt-hours, a year-on-year increase of 5.7%. Jiang Debin, Deputy Director of the China Electricity Council's Statistics and Data Center, said that since the summer, many parts of the country have experienced sustained high temperatures, with the maximum electricity load rapidly increasing and repeatedly breaking historical records. In July, the maximum nationwide electricity load reached 1.451 billion kilowatts, setting a new historical record. Under the guidance of relevant government departments, companies in the electric power industry have actively responded to the challenges of peak summer demand and high temperatures, effectively ensuring the power supply. Haitong Securities previously pointed out that the thermal power sector can expect multiple positive factors in the third quarter, including improvement in electricity prices, electricity consumption, and coal prices, which are worth watching.

Popular fluctuating stocks

1. GDS Holdings-SW (09698) was strong throughout the day, closing up 13.94% at HKD 14.22.

GDS Holdings announced its second-quarter results, with net revenue increasing by 14.3% year-on-year to RMB 2.8264 billion. Gross profit was approximately RMB 0.638 billion, a year-on-year growth of 15.76%. Net loss was approximately RMB 0.232 billion, and adjusted EBITDA (non-GAAP) increased by 6.2% year-on-year to RMB 1.312 billion.

2. Miniso (09896) rose significantly, closing up 6.9% at HKD 31.75.

According to late reports, Miniso launched a new format called the "24-hour super store" this year. Internally referred to as a super store, it only provides services to consumers within 3-10 kilometers who place orders online and can be delivered within one hour. Currently, there are already over 200 stores opened.

AIA (01299) opened low and moved higher, closing up 5.93% at HKD 54.45.

AIA released its 2024 interim results, with the new business value increasing by 25% to USD 2.455 billion, reaching a historical high. During the period, the group achieved a year-on-year net profit growth of 47.3% to USD 3.314 billion. According to the International Financial Reporting Standards, the after-tax operating profit is expected to increase by 3.5% year-on-year to USD 3.386 billion, while the mid-term dividend is expected to grow by 5.2% year-on-year to 44.5 HK cents.

OOIL (00316) rose significantly before the results, closing up 5.61% at HKD 114.8.

OOIL will release its interim results today. According to a research report by HSBC, the group's EBIT profit margin is expected to improve by 14.6 percentage points to 16.3% in the half-year, and the recurring profit is expected to increase 2.3 times to USD 0.792 billion. The rating was upgraded from 'shareholding' to 'hold', with the target price raised from HKD 85 to HKD 115.

G China Fin (00431) plummeted on high volume, closing down 87.18% at HKD 0.01.

G China Fin announced that it has received a letter from the Stock Exchange, stating that the company has failed to maintain sufficient business operations and have assets of sufficient value to support its operations, allowing its shares to continue to be listed. The trading of the company's shares will be suspended on September 2.