According to the iFast Financial APP, as the year-end approaches with the upcoming dual meeting time windows, the market is hopeful for strong economic stimulus policies. The three major stock indexes in Hong Kong rose in the morning session, with the HSI and the HSTECH indexes both rising by over 2%. As of the close, the Hang Seng Index rose by 1.56% or 305.41 points to 19865.85 points, with a total daily turnover of 162.785 billion Hong Kong dollars; the Hang Seng China Enterprises Index rose by 1.75% to 7136.55 points; the Hang Seng Tech Index rose by 2.16% to 4464.65 points. Looking at the entire week, the HSI accumulated an increase of 2.28%, the HSCEI accumulated an increase of 2.73%, and the HSTECH accumulated an increase of 2.55%.

Yan Zhaojun, a strategist at Zhongtai International, stated that investors are once again speculating on the expectations of economic stimulus. Hong Kong stocks are in a volatile market where they anticipate a rebound when valuations are low due to policy expectations, and adjustments when policies are realized or expectations fall short. Haitong Securities believes that in this round of market trends, the performance of Hong Kong stocks is significantly leading compared to A-shares. Currently, Hong Kong stocks are in a high cost-effective range. Future efforts in domestic policies or improvements in fundamentals may drive Hong Kong stocks to have significant upside potential.

Blue chip performance

Wuxi Apptec (02359) led the blue chips. As of the close, it rose by 9.2% to 54.6 Hong Kong dollars, with a turnover of 0.899 billion Hong Kong dollars, contributing 2.7 points to the Hang Seng Index. Minsheng Securities recently pointed out in a research report that with the Fed's 50bp rate cut, the biotech financing end is expected to continue the improving trend from the first half of the year, and the CXO leading head with mainly overseas customers contributing to orders and income is expected to further recover.

In other blue-chip stocks, Ctrip Group-S (09961) rose by 5.86% to 542 Hong Kong dollars, contributing 8.37 points to the Hang Seng Index; Wuxi Bio (02269) rose by 5.47% to 17.34 Hong Kong dollars, contributing 5.46 points to the Hang Seng Index; WH Group (00288) fell by 1.88% to 6.25 Hong Kong dollars, dragging down the Hang Seng Index by 1.62 points; Sunny Optical Technology (02382) fell by 1.8% to 62.9 Hong Kong dollars, dragging down the Hang Seng Index by 1.44 points.

Hot sectors

On the market, large technology stocks across the board rose, with JD.com up over 3%, Alibaba and Meituan both up over 2%. Biomedical stocks performed strongly, leading the way in the CRO direction, with Pharmaron up 12% at one point; market sentiment is high, with consumer concepts such as dining and aviation rising one after another; SaaS concept stocks are all up, with Kingdee International up over 9%; auto stocks, mainland real estate stocks, and semiconductor stocks are all in the green. On the other hand, the cryptocurrency market experienced a big shake at high levels, with Bitcoin concept stocks that were strong yesterday all down; Apple concept stocks collectively fell, Q Tech dropped over 5%; pork industry concepts and photovoltaic stocks performed poorly.

1. CRO concept stocks lead the gains. At the close, Sichuan (02359) rose 9.2% to HKD 54.6; Pharmaron (03759) rose 8.27% to HKD 14.66; Asymchem Laboratories (06821) rose 7.02% to HKD 54.9; Wuxi Bio (02269) rose 5.47% to HKD 17.34.

According to Zhongyin International, in recent years, due to relatively high pressures in the investment and financing environment, sectors in the pharmaceutical industry that are closely related to investment and financing, such as pharmaceuticals outsourcing and research services, have been under sustained pressure. With the recovery of the secondary market, it is expected that domestic investment and financing conditions will gradually improve as well. Additionally, in recent years, global investment and financing have also gradually warmed. Moreover, the emergence of some emerging fields (such as ADC, peptide drugs, etc.) has also provided new momentum for investment in the pharmaceutical industry. This is expected to further increase the demand for CXO and research services, and against this backdrop, the CXO and research service sectors, primarily focused on domestic business, are expected to gradually emerge from the trough.

2. Strong performance of dining stocks. At the close, XiabuXiabu (00520) rose 10.78% to HKD 1.13; Super Hi (09658) rose 8.74% to HKD 18.16; Helen's (09869) rose 6.25% to HKD 2.55; Yum China (09987) rose 4.55% to HKD 381.4.

In recent times, various places nationwide have issued consumer vouchers. The Guangzhou municipal government's executive meeting passed the implementation plan for the 'Food in Guangzhou' government consumer vouchers, planning to issue 0.1 billion RMB 'Food in Guangzhou' government consumer vouchers; Shanghai will issue the third round of 'Enjoy Shanghai' dining vouchers in December, with a total of 3 batches on December 7th, 14th, and 28th. Tianfeng Securities pointed out that the impact of dining vouchers is direct and significant, beneficial for stimulating the recovery of the dining industry.

It is worth mentioning that the end-of-year dual conference time window is approaching. Citic Securities believes that the conference will analyze the current economic situation and set the economic work target for 2025. It is expected that the conference's tone on next year's macro policies will continue to be positive, with subsequent new rounds of policy deployment significantly boosting market confidence. The firm points out that consumption will be the key factor in boosting domestic demand next year. It is expected that the support for long-term special treasury bonds to boost consumption will increase to the level of 100-150 billion this year, or reach 200-300 billion RMB.

3. Aviation stocks collectively rose. At the close, China Eastern Airlines (00670) rose 6.64% to HKD 2.57; China Southern Airlines (01055) rose 5.9% to HKD 3.95; Air China Limited (00753) rose 5.13% to HKD 4.92; Capital Airport (00694) rose 4.83% to HKD 2.82.

International oil prices fell overnight, with OPEC deciding to delay the continuation of 2.2 million barrels per day of production increase by a quarter, starting from April next year. China Securities Co., Ltd. previously pointed out that key driving variables for the aviation industry include flight volume, passenger load factor, ticket prices, oil prices, and exchange rates. The firm stated that demand may benefit from fiscal policies, costs may benefit from lower oil prices, while there may still be pressure on exchange rates. Citic Securities indicated that the expectation is for easing aviation fuel pressure in 2025 to drive airline profit growth. The management of domestic line revenues in 2025 is expected to return to normal, and positive policy signals such as the continuous expansion of visa-free countries in the near term suggest that the 2025 Spring Festival travel period may be a litmus test for the aviation cycle.

Insurance stocks lead the major financial sector. As of the close, New China Life Insurance (01336) rose by 3.93% to HK$25.1; China Pacific Insurance (02601) rose by 3.63% to HK$25.7; China Life Insurance (02628) rose by 2.67% to HK$15.38; Ping An Insurance (02318) rose by 2.3% to HK$46.75.

On December 4th, the official website of New China Life Insurance announced the acquisition of H-shares of Haitong Securities, marking the first time in nearly five years that insurance capital has acquired shares of brokerage firms. Soochow Securities believes that this acquisition reflects New China Life Insurance's confidence in the long-term development of the capital markets and is optimistic about investment opportunities in brokerage mergers. The bank stated that the current market demand for savings remains strong. With regulatory guidance continuing to encourage insurers to reduce their debt costs, the pressure on insurance companies' interest rate spreads is expected to gradually ease. Recently, the yield on the ten-year government bonds has dropped to around 1.96%. The bank expects that with the recovery of the domestic economy, if long-term interest rates stabilize or rise, the pressure on new fixed-income investment yields for insurance companies will be alleviated.

Some photovoltaic stocks continue to be under pressure. At the close, Flat Glass (06865) fell by 3.04% to HK$12.76; Xinte Energy (01799) fell by 2.93% to HK$7.95; Xinyi Solar (00968) fell by 1.77% to HK$3.33.

The U.S. Department of Commerce recently announced its preliminary affirmative rulings on anti-dumping investigations on crystal photovoltaic cells (regardless of whether assembled into modules) from four Southeast Asian countries, Cambodia, Malaysia, Thailand, and Vietnam: the anti-dumping tax rates range from 0 to 271.28% for these countries. China International expressed that the market is paying attention to the annual conference of the China Photovoltaic Industry Association held in Sichuan from December 4-6. If there is a lack of positive news after the conference, the photovoltaic sector may come under pressure in the short term due to factors such as high tariffs imposed by the United States on imported products from Southeast Asia and the continuous decline in photovoltaic product prices.

According to the Shanghai Securities News, the China Photovoltaic Industry Association held a special symposium on promoting high-quality and sustainable development of the photovoltaic industry on December 5th in Yibin, Sichuan. A responsible person from a participating company confirmed that all participating companies have signed a self-discipline agreement, voluntarily controlling production capacity in the future to avoid blind expansion.

Popular fluctuating stocks

Vertical International Holdings (08375) surged massively on high volume. At the close, it rose by 430.23% to HK$1.14.

Vertical International Holdings announced that the Chairman, CEO, and Executive Director, Wen Haoran, sold 0.188 billion shares to Guo Fan, accounting for approximately 65.33% of the company's total issued share capital. The total consideration was HK$57.4798 million, equivalent to HK$0.3055 per share sold, with a premium of approximately 42.09% over the closing price on the last trading day. Guo Fan will be required to make a mandatory unconditional cash offer for all issued shares.

Ping An Health (01833) performed strongly. As of the closing, it rose by 12.69% to HKD 6.04.

Prior announcement by Ping An Health indicated that the ex-dividend date is December 6, 2024, with a special dividend of HKD 9.7 per share, and the dividend distribution date is January 24, 2025. China Securities Co., Ltd. previously expressed optimism about the continuous growth of the company as a professional and comprehensive medical and retirement health management service provider.

Imotionautotech (01274) showed a significant increase. By the closing, it rose by 12.47% to HKD 20.2.

According to 36kr Holdings, Imotionautotech will establish a strategic partnership with Horizon Robotics to develop intelligent driving solutions based on the Horizon Journey Series 6E chip (referred to as J6E), targeting the market of 0.1-0.15 million mid-range intelligent driving. The Horizon J6E chip has a single computing power of 80TOPS, supporting functions like high-speed navigation, automatic parking, and city memory navigation. The complete solution based on J6E is priced at less than 5000 yuan, supports passive cooling, can be used in fuel vehicles, and is a highly cost-effective solution.

Juzi Biosciences (02367) rose throughout the day. By the closing, it increased by 8.34% to HKD 51.3.

The China Medical Device Evaluation Center (CMDE) of the National Medical Products Administration recently released the "Priority Approval Application Review Results for Medical Devices (No. 17 of 2024)". According to the results, Juzi Biosciences' "Injection Recombinant Collagen Filler (Acceptance No: CQZ2402149)" belongs to the category of "medical devices included in the national key research and development plan", meeting the criteria for priority approval, and is intended for priority approval.

New stocks debut.

Multipoint Intelligence (02586) plummeted on its first day of listing. By the closing, it fell by 54.32% to HKD 13.8.

Dmall, priced at HK$30.21 per share, will issue a total of 25.774 million shares, with the net proceeds expected to be approximately HK$0.624 billion. Public information shows that Dmall was established in 2015, providing a cloud-based end-to-end digital retail SaaS platform for local retail industry. At the beginning of its establishment, it started providing services to Wumart Group. According to Frost & Sullivan data, by 2023, in terms of revenue, the company is the largest retail digital solution service provider in China and the leading retail digital solution service provider in Asia.