On May 21, Futu News reported that all three major indices of the Hong Kong stock market rose, with the Hang Seng Index up 0.62%, the ChiNext Index up 0.51%, and the China Enterprises Index up 0.84%.
At the close, 1,193 stocks in the Hong Kong market rose, 871 fell, and 1,071 closed flat.
The performance of specific industries is shown in the following figure:
In terms of sectors, aviation companies saw a faster recovery in domestic supply and demand for domestic flights in August, with passenger traffic reaching the highest monthly level this year. Relaxing access may optimize the route structure. Looking ahead to the fourth quarter, the landing of vaccines during the year is a high-probability event. As domestic aviation demand continues to recover, aviation companies will continue to reduce losses. The favorable oil prices and exchange rates will provide advantages, and the aviation sector will also usher in both valuation and profit restoration. I recommend investors to actively allocate related stocks in the Hong Kong stock market, such as Meilan Airport (00357), Air China Limited and other related symbols.
Most Network Technology stocks rose, with Bilibili up 4.14%, Baidu Group-SW down 1.94%, Alibaba-W up 1.15%, Kuaishou-W up 0.90%, JD Group-SW up 0.75%, TENCENT up 0.68%, MEITUAN-W up 0.66%, and XIAOMI-W down 0.64%.
Gold stocks rose, with Chifeng Jilong Gold Mining up 13.84%, Zhu Feng Gold up 12.07%, Zijin Mining Group up 7.93%, Zhaojin Mining up 7.80%, LINGBAO GOLD up 7.13%, SD GOLD up 7.01%, CHINAGOLDINTL up 6.30%, and TONGGUAN GOLD up 5.80%.
Nonferrous Metals stocks strengthened, with Zijin Mining Group up 7.93%, Zhaojin Mining up 7.80%, LINGBAO GOLD up 7.13%, SD GOLD up 7.01%, Aluminum Corporation Of China up 4.62%, CMOC Group Limited up 4.59%, JIANGXI COPPER up 2.65%, and CHINAHONGQIAO up 2.52%.
Sports goods stocks rose, with ANTA SPORTS up 5.77%, POU SHENG INT'L up 4.17%, CHINA DONGXIANG up 2.50%, and LI NING up 0.92%.
Lithium Battery Stocks strengthened, Tianqi Lithium Corporation rose 4.07%, BYD Company rose 4.05%, GANFENGLITHIUM rose 3.44%, TIANNENG POWER rose 2.64%, Zhongxin Innovation rose 2.47%, BYD Electronics rose 2.04%, HONBRIDGE rose 1.72%, LEOCH INT'L rose 0.40%.
Auto Stocks increased, BRILLIANCE CHI rose 4.68%, LI AUTO-W rose 4.05%, BYD Company rose 4.05%, Geely Auto rose 3.09%, YADEA rose 1.55%.
In terms of individual stocks,
$POP MART (09992.HK)$ It rose by 3.75%, setting a new historical high. Morgan Stanley pointed out that the global demand for Labubu v3 is strong, which will drive the opening of new stores and will be a key growth factor from 2025 to 2026.
$LAOPU GOLD (06181.HK)$Up over 7%, the sales record of the first hour of the 618 shopping festival broke 40 million, an increase of 800% compared to last year. According to浦银国际, using PEG as a reference indicator, the valuation level of the old shop remains relatively cost-effective compared to its peers, and the valuation level is expected to improve.
$WEIMOB INC (02013.HK)$Up over 5%, WeChat e-commerce has established an independent department, and the company is expected to benefit from the acceleration of WeChat commercialization.
$MEITU (01357.HK)$ Up nearly 19%, the stock price reached a new five-year high. In terms of news, Alibaba invested in MEITU through convertible bonds, and both parties will carry out strategic cooperation in areas such as e-commerce platforms, AI technology, and cloud computing.
$ALI PICTURES (01060.HK)$ Up nearly 23%, the company plans to rename itself to DAMAI Entertainment, and the adjusted annual EBITA profit is expected to increase by more than 60%. The Board of Directors believes that suggesting a change in the company's name will help further enhance the market visibility of its brand within the entire entertainment ecosystem, especially in the offline entertainment market, and reshape its branding strategy, as well as provide a more relevant and unique corporate image and identity for the company; this will benefit the group's future diversified business development.
$BILIBILI-W (09626.HK)$Increased by over 4%, with gross profit in the first quarter growing nearly sixty percent year-on-year, and revenue from performance-based advertising showing strong growth.
$3SBIO (01530.HK)$ Rising over 8%, Guosen Securities believes that the combination of double antibody and ADC is expected to become the next generation of tumor immunotherapy combination, and the company's collaboration with Pfizer further validates the overseas potential of 707.
$LAEKNA-B (02105.HK)$Rising over 17%, the company has reached a cooperation agreement with Eli Lilly and Co to jointly develop LAE102.
$NETEASE MUSIC (09899.HK)$Rising over 5%, the stock price has reached a new high since its listing, with operational leverage release leading to a continuous increase in gross margin.
Top 10 transaction amounts today.
Hong Kong Stock Connect funds.
In terms of the Stock Connect, today the net inflow of the Hong Kong Stock Connect (southbound) is 1.427 billion HKD.
Institutional views
Morgan Stanley raised the target for Chinese stocks due to an improving outlook.
Morgan Stanley has raised the index target for the Chinese stock market due to continuous structural improvements and recent positive developments in tariffs and earnings, with target indices for the Msci China Index, Hang Seng Index, Hang Seng H-Share Index ETF, and CSI 300 Index at 78 points, 24,500 points, 8,900 points, and 4,000 points respectively for the benchmark scenario in June 2026.
JPMorgan pointed out that physical artificial intelligence and consumer recovery will become the two major themes for future investments.
JPMorgan released a Research Report stating that with the increase in AI applications, improvements in revenue and cost savings will help drive EPS growth, and there is an upside risk to the consensus forecast for the Msci China Index in 2025. With the revenue increases and cost savings brought by the implementation of AI technology, there is room for upward adjustment in profit expectations for weighted sectors like the Internet. The bank specifically noted that artificial intelligence innovation (especially "physical artificial intelligence," such as robotics, autonomous driving, and AI applications on internet platforms) and consumption will become the two major themes for future investments.
Editor/joryn
