According to the Zhitong Finance App, the Hong Kong stock market opened low in the morning and then maintained a volatile rise throughout the day, influenced by multiple negative news over the weekend. At the close, the Hang Seng Index rose 0.31% or 53.03 points to 17,422.12, with a daily turnover of HKD 47.99 billion. The Hang Seng China Enterprises Index rose 0.31% to 6,090.16, and the Hang Seng Tech Index rose 0.51% to 3,497.45.

BOCOM International pointed out that the Hong Kong stock market experienced a phased rally in August, achieving a double hit in valuation and earnings, with its stock index outperforming other major stock indices worldwide, reflecting the characteristics of upward elasticity in the emerging market of Hong Kong under the circumstances of rate cuts and undervaluation trading. At the same time, the technical analysis shows that the Hong Kong stock market has just transitioned from the grinding bottom to the upward phase. Although the RSI indicates a temporary overbought condition, it is expected to have further upside potential in the short term with the improvement of global liquidity.

Blue chip performance

Techtronic Industries (00669) was among the top gainers in blue-chip stocks. At the close, it rose 3.71% to HKD 108.9, with a turnover of HKD 0.321 billion, contributing 10 points to the Hang Seng Index. Sinolink Securities pointed out that the opening of the North American interest rate cycle is expected to boost demand for terminal tools, and combined with the company's competitive advantages, market share and profitability are expected to continue to improve. Huafu Securities previously stated that after the sales of new houses in China reached a temporary peak, there is expected to be demand for house repairs, DIY, and other related needs as the age of houses increases and labor costs in China rise. Therefore, companies specializing in power tools and similar products also present opportunities in China.

In other blue-chip stocks, New World Development (00017) rose 4.98% to HKD 6.75, contributing 1 point to the Hang Seng Index; Meituan-W (03690) rose 2.85% to HKD 126.5, contributing 34 points to the Hang Seng Index; Zijin Mining Group (02899) rose 1.66% to HKD 14.74, contributing 2 points to the Hang Seng Index; and Hong Kong Exchanges and Clearing (00388) fell 1.25% to HKD 221.2, dragging down the Hang Seng Index by 6 points.

Hot sectors

On the market, Yiwo Xidan's data on the monoclonal antibody exceeded expectations, coupled with policy support for the development of innovative drug industry, the performance of innovative drug concept was strong throughout the day; international gold prices continued to hit new highs, and gold stocks continued to rebound recently; the National Bureau of Statistics stated that the real estate market continued to adjust, with mainland real estate stocks and property management stocks collectively declining. In addition, aviation stocks bottomed out and rebounded, while Apple concept and photovoltaic stocks showed differentiation.

1. The innovative drug concept performed strongly throughout the day. At the close, Yimengang-B (01541) rose 35.22%, closing at HK$6.68, doubling in the past three trading days; Geli Pharmaceutical-B (01672) rose 18.39%, closing at HK$1.03; Akeso (09926) rose 16.14%, closing at HK$71.6, reaching a new intraday high; Cornerstone Pharmaceuticals-B (02616) rose 9.4%, closing at HK$1.63.

On September 8, Kangfang Biology released the mid-term analysis data of its Yiwosi and K Drughead, bringing greater imagination to the prospects of PD-1/VEGF bispecific antibodies in the field of tumor immunotherapy. In early August, Yimengang's similar target molecules IMM2510 and IMM27M reached a total of over US$2 billion in BD cooperation with SynBioTx Inc., a wholly-owned subsidiary of Instil Bio, Inc. of China. It is worth noting that Instil Bio's cumulative increase in the past five trading days is close to five times. In addition, the National Medical Products Administration (NMPA) stated that it will expedite the approval of clinical drugs, shorten the implied time limit for clinical trial permits, and conduct pilot trials in Beijing, Shanghai and other areas.

2. Gold stocks continue to rebound recently. At the close, Shandong Gold (01787) rose 4.21%, closing at HK$15.84; China Gold International (02099) rose 4.18%, closing at HK$31.15; Zhaojin Mining (01818) rose 3.35%, closing at HK$12.96; Lingbao Gold (03330) rose 3.06%, closing at HK$3.03.

Expectations of a sharp interest rate cut by the Federal Reserve pushed up gold prices to a new record high, with spot gold approaching $2,590 per ounce during the day. Goldman Sachs predicts that as the Fed prepares for interest rate cuts, inflows from asset management institutions will drive up precious metals, and strong demand from central banks around the world will continue to support gold prices. Australia and New Zealand Banking Group (ANZ) expects the gold price to reach $2,900 per ounce by the end of 2025.

3. The mainland real estate sector and property management sector collectively weakened. At the close, A-Living Services (03319) fell 8.82%, closing at HK$2.17; CG Services (06098) fell 4.45%, closing at HK$4.08; China Overseas Development (00688) fell 2.01%, closing at HK$10.7; Kwg Group (01813) fell 2.29%, closing at HK$0.213.

The National Bureau of Statistics recently released economic and real estate data for the first eight months. From January to August, the year-on-year growth rates of sales area and sales volume of commercial housing were -18.0% and -23.6% respectively, up 0.6 and 0.7 percentage points from the previous period. In August, the year-on-year decline in second-hand housing prices in 70 cities expanded to -8.6%, and the month-on-month decline expanded slightly to -0.9%. The price decline is still fast. Changjiang Securities pointed out that there is still great downward pressure on the industry in the short term. Although the base has significantly decreased in the second half of the year, the year-on-year decline in new house sales has not significantly narrowed; the second-hand market continues the trend of trading volume for price, with continuous price decline and a further expansion of the month-on-month average price decline.

4. Apple concept stocks showed differentiation today. At the close, Q-Tech (01478) fell 4.33%, closing at HK$4.2; Cowell (01415) fell 1.44%, closing at HK$20.55; Sunny Optical (02382) remained unchanged, closing at HK$43.5; FIH (02038) rose 1.33%, closing at HK$0.76.

Guo Mingkang, an analyst at TF International Securities, released a report stating that the sales of the iPhone 16 series were lower than expected. Guo Mingkang stated that the pre-order sales of the iPhone 16 series during the first weekend were approximately 37 million units, a decrease of about 12.7% from the same period last year for the iPhone 15 series, which was below Apple's expectations. Fubon also pointed out that there were no major surprises in the iPhone 16, and the market may return to normal sales for the iPhone 16, putting short-term pressure on the stock prices of the iPhone supply chain.

Popular fluctuating stocks

1. After resuming trading, Momentum Financial Holdings (01152) soared, rising over 270% at one point during the day and closing with a 207.69% increase at HKD 0.12.

Momentum Financial Holdings suspended trading on September 2 this year until the release of the interim performance announcement for 2024. On September 15, the company released its interim results, with a first-half revenue of HKD 0.329 billion, a 12.45% decrease year-on-year; and a net profit attributable to owners of the company of HKD 9.488 million, a 42.96% decrease year-on-year. It is noteworthy that Momentum Financial recently announced a series of personnel changes. It was reported that in late June this year, the company, which had only one director at the time, fewer than the minimum number stipulated in the company's rules, and the statutory number of directors required for board meetings was insufficient to carry out the affairs of the board of directors, so the company is actively seeking suitable candidates.

2. CR Holdings (01911) continued to decline after resuming trading earlier this month and saw a strong rebound in stock price today, with a 37.56% increase to HKD 2.93 at the close.

On September 6, CR Holdings announced that the founder and chairman, Bao Fan's wife, Xu Yanqing, has been appointed as a non-executive director of the company. The company also announced that four executive directors, including Chairman of the Board Xie Yijing, Vice Chairman Lin Jiachang, and two co-CEOs Wang Lixing and Du Yongbo, have pledged not to sell any shares or equity interests of the company from September 8, 2024, to March 7, 2025.

3. Chenjiu Lidu (06979) continued its downward trend, hitting a new low during trading and closing with a 4.51% decrease at HKD 5.72.

Overall baijiu sales during the Mid-Autumn Festival this year were weak. According to industry conventions, baijiu sales during the Mid-Autumn and National Day typically account for 20% to 30% of the distillery's annual sales. However, several baijiu merchants have recently indicated that this year's Mid-Autumn baijiu sales were lower than expected. An official from the Sichuan Liquor Circulation Association revealed that this year's Mid-Autumn sales are expected to decrease by 20%-30% compared to last year. Data from Guotai Junan Securities shows that the baijiu industry saw a slight recovery in sales from August to September, but overall demand in most regions has still declined compared to the same period last year, with significant price pressure outweighing sales pressure.

Rongchang Biology (09995) plunged 20% in early trading, hitting a new low. By the close, it fell 10.54%, to HKD 11.54.

Rongchang Biology recently released its first-half financial results, with a revenue of CNY 0.74 billion, an increase of 76.5% year-on-year. Shareholders' net loss was CNY 0.78 billion, a 10.96% increase year-on-year. Guosen International pointed out that Rongchang Biology's 2Q24 revenue slightly exceeded expectations, mainly due to better-than-expected sales of Taixi Pu; however, the net loss was significantly higher than expected, mainly due to research and development expenses significantly higher than expected and non-operating expenses exceeding expectations. BOCOM International previously released a research report, reducing the peak sales of Taixi Pu and Vildagliptin (including overseas) to CNY 4.8 billion and CNY 2.4 billion respectively.