Hong Kong Stock Market Closing (03.14) | Hang Seng Index rose by 2.12%, baby and child concept stocks soared, large financial stocks and consumer stocks were strong throughout the day

According to Zhitong Finance APP, the central bank has clearly stated that it will lower the reserve requirement ratio and interest rates at an appropriate time. The three major indices of the Hong Kong stock market surged strongly, with the Hang Seng Index briefly breaking through the 24,000 mark, and the Hang Seng Tech Index rising nearly 3%. By the close, the Hang Seng Index rose 2.12% or 497.33 points, closing at 23,959.98 points, with a total turnover of HKD 290.613 billion; the Hang Seng China Enterprises Index rose 2.75%, closing at 8,877.99 points; the Hang Seng Tech Index rose 2.31%, closing at 5,880.78 points. For the week, the Hang Seng Index fell a cumulative 1.12%, the China Enterprises Index fell a cumulative 0.4%, and the Hang Seng Tech Index fell a cumulative 2.59%.

Guotai Junan International believes that in the medium to long term, there is still room for the Hong Kong stock market to continue rising, and the revaluation logic of Hong Kong stocks has not yet run its course. In the foreseeable future, domestic policies will continue to provide support, and overseas interest rates will further decline, both of which are beneficial for the improvement of Hong Kong stock earnings and valuations. Additionally, from an industrial perspective, breakthroughs by Chinese companies in the AI large model field not only initiate a new round of technology capital expenditure cycles but also expand the existing capital investment space domestically, becoming a new destination for capital investment aside from traditional infrastructure and real estate, providing new momentum for domestic economic growth and improving the earnings outlook for Hong Kong stocks.

Blue Chip Performance

BYD Company Limited (01211) performed strongly. By the close, it rose 6.93%, closing at HKD 385.8, with a turnover of HKD 11.762 billion, contributing 45.52 points to the Hang Seng Index. BYD's official Weibo announced that the company will hold a technical release for the BYD Super e-platform and the pre-sale launch of the Han L and Tang L on March 17 at 19:00. It is reported that this is another major upgrade in pure electric technology following the launch of the e-platform 3.0 Evo in May 2024. According to informed sources, the core highlight of this platform is its support for 1000V high-voltage technology.

In other blue chip stocks, WuXi Biologics (02269) rose 14.38%, closing at HKD 26.65, contributing 20.58 points to the Hang Seng Index; Mengniu Dairy (02319) rose 9.03%, closing at HKD 19.8, contributing 8.47 points to the Hang Seng Index; CK Hutchison Holdings (00001) fell 6.38%, closing at HKD 46.25, dragging down the Hang Seng Index by 14.06 points; Cheung Kong Infrastructure Holdings (01038) fell 2.93%, closing at HKD 52.95, dragging down the Hang Seng Index by 1.65 points.

Popular Sectors

On the market, large technology stocks rose across the board, with Meituan and JD.com rising over 5%, and Alibaba rising over 3%. Subsidies for parenting policies drove the baby and child concept stocks to soar, with Jinxin Fertility rising over 41% and Goodbaby International rising over 25%; the central bank clearly stated that it will lower the reserve requirement ratio and interest rates at an appropriate time, leading to strong performance from large financial stocks such as brokerages and insurance; international gold prices surpassed the USD 3,000 mark, with gold stocks performing well; large consumer stocks, pharmaceutical stocks, education stocks, and domestic property stocks all rose. On the other hand, pork concept stocks, steel stocks, and power stocks performed poorly.

1. Baby and Child Concept Stocks Soar. By the close, Jinxin Fertility (01951) rose 41.67%, closing at HKD 3.57; Goodbaby International (01086) rose 25.47%, closing at HKD 1.33; China Feihe (06186) rose 15.68%, closing at HKD 6.86; Ausnutria Dairy (01717) rose 12.96%, closing at HKD 2.44 On March 13, the Health Commission of Hohhot released local fertility subsidy details, with the highest single-child subsidy reaching 100,000 yuan. Citigroup stated that the policy released by Hohhot exceeded expectations, and more local governments are expected to follow suit in the short term. In addition, relevant departments in Shenzhen announced today that national authorities are studying childcare subsidy plans, and our city will actively and steadily implement them according to national deployment. CICC stated that while it is currently difficult to assess the policy's ultimate impact on fertility rates, it believes that higher expectations will boost investment sentiment in baby-related stocks in the short term, with China Feihe expected to benefit the most.

2. The large financial sector exploded. By the close, New China Life Insurance (01336) rose 11.35% to HKD 30.9; China Pacific Insurance (02601) rose 9.66% to HKD 26.1; CICC (03908) rose 4.86% to HKD 16.4; China Merchants Bank (03968) rose 2.47% to HKD 49.7.

On March 13, the Party Committee of the People's Bank of China held an expanded meeting. The meeting pointed out the need to implement a moderately loose monetary policy. Based on domestic and international economic and financial situations and the operation of financial markets, it is necessary to appropriately lower the reserve requirement ratio and interest rates, comprehensively use various monetary policy tools such as open market operations, maintain ample liquidity, and ensure that the growth of social financing scale and money supply matches the economic growth and overall price level expectations. Further smooth the transmission channels of monetary policy, improve the interest rate formation and transmission mechanism, and promote the decline of comprehensive financing costs in society. Strengthen communication with the market and enhance policy transparency. Adhere to the decisive role of the market in exchange rate formation, strengthen expectation guidance, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

3. Gold stocks performed brilliantly. By the close, China National Gold International (02099) rose 8.06% to HKD 53.6; Shandong Gold (01787) rose 5.46% to HKD 16.6; Zhaojin Mining (01818) rose 5.34% to HKD 15; Lingbao Gold (03330) rose 5.24% to HKD 5.82.

Trade tensions have heightened risk aversion, combined with bets on the Federal Reserve easing monetary policy, leading gold prices to hit a historic high on Thursday. Overnight, New York futures gold rose 1.85%, first breaking through the $3,000 mark, closing at $3,001.3 per ounce, a record high; spot gold this morning briefly touched a historic high of $2,990. Macquarie Group analysts expect gold prices could rise to a record high of $3,500 per ounce by the third quarter of this year. Debon Securities pointed out that in the long term, gold prices are expected to continue to rise driven by factors such as the expansion of the dollar scale; in the short term, the continued rise in expectations for Federal Reserve rate cuts and recent CPI data's short-term stimulus are expected to allow gold prices to end their fluctuations and return to an upward trend, with opportunities for gold and related stocks gradually emerging.

4. CRO concept stocks led the gains. By the close, Vya Bio (01873) rose 18.88% to HKD 1.7; WuXi Biologics (02269) rose 14.38% to HKD 26.65; Kanglong Chemical (03759) rose 9.35% to HKD 16.6; Tiger Med (03347) rose 7.14%, closing at HKD 37.5.

Huaxin Securities pointed out that by December 2024, the biosafety bill has not yet been passed by both houses of the U.S. Congress. In 2025, Chinese CRO companies will gain some window period, and after the change of the U.S. president, the main focus is currently on increasing tariffs. For Chinese companies with cost advantages, the current increase in tariffs does not affect the competitive advantage of CDMO, and the probability of the biosafety bill being passed again has significantly decreased, which will also reduce the concerns of overseas pharmaceutical companies. In terms of domestic orders, the trend of pharmaceutical investment and financing in 2024 is not improving but has basically stopped declining. In addition, it is expected that more CRO companies will actively embrace AI technology to seek to enhance their competitiveness in a fiercely competitive market.

5. Domestic property stocks rose collectively. As of the close, China Jinmao (00817) rose 12.39%, closing at HKD 1.27; Greentown China (03900) rose 9.97%, closing at HKD 12.8; New World Development (01030) rose 8.02%, closing at HKD 2.29; Country Garden (02007) rose 7.22%, closing at HKD 0.52.

Recently, the real estate market has heated up in many places. According to the housing market monitoring data released by the Linping Residential Big Data Research Institute, from the year-on-year data of cumulative transaction units, among the 14 key monitored cities from January to February, 12 cities saw an increase. Among them, the year-on-year cumulative increase in first-tier cities is greater than that of second-tier cities. Last week, the transaction volume of second-hand residential properties in the 10 key cities was 20,024 units, a year-on-year increase of 38.45%. From the cumulative transactions within the month, from March 1 to 9, 2025, the transaction of second-hand residential properties in the 10 key cities was 21,755 units, an increase of 26% compared to the same period in March 2024.

China Merchants Jinling International believes that the industry has stabilized with clear targets, and under a low base, attention should be paid to the subsequent performance of the "small spring" real estate market. In February, the mainland continued its loose real estate policy orientation. At the central level, the Central Political Bureau meeting reiterated the need to stabilize the real estate and stock markets. Although the impact of the traditional off-season has not yet been completely cleared, against the backdrop of a low base, the bank expects a promising small spring in March and should continue to pay attention to the differentiation between various cities and between state-owned and private enterprises.

Popular Active Stocks

1. CK Hutchison Holdings (00001) fell sharply. As of the close, it dropped 6.38%, closing at HKD 46.25.

CK Hutchison previously announced that it had reached a principle agreement with a consortium led by BlackRock in the U.S. to sell 80% of its assets in Hutchison Port Holdings, transferring its holdings and operations of 43 ports and supporting logistics networks distributed across 23 countries, including the Balboa and Cristobal ports at both ends of the Panama Canal. Reports indicate that the BlackRock consortium can deeply embed itself in key nodes of global trade through this acquisition, while CK Hutchison's exit may be influenced by geopolitical pressures.

2. Yuejiang (02432) plummeted after hitting a new high. As of the close, it dropped 6.35%, closing at HKD 58.3.

Yuejiang Technology previously launched the world's first "agile operation + direct knee walking" embodied intelligent humanoid robot, which can smoothly perform the aforementioned actions like a human, with arm operation precision reaching 0.05mm, making it the humanoid robot with the most human-like dual-arm operation capability and direct knee walking gait. According to Yuejiang, this new product has already been introduced to domestic first-tier automobile manufacturers and electronic manufacturing plants The scene cooperation of coffee and milk tea shops will achieve trial production and mass production by mid-year.

3. Blucor (00325) significantly increased. As of the close, it rose by 11.83%, reporting HKD 126.7.

Northeast Securities' recent research report pointed out that Blucor's products are positioned as children's toys, with core IPs such as Ultraman and Transformers, and its style is suitable for minors, especially boys in elementary school. Although the product styles and target demographics of the two are quite different, both have achieved rapid development through the blind box format, so Blucor can be likened to a children's version of "Pop Mart."

4. New Oriental-S (09901) surged in the afternoon. As of the close, it rose by 8.07%, reporting HKD 39.5.

CITIC Securities previously pointed out that although the transmission from birth population to K12 training groups takes 6-7 years, the fluctuations in the birth population that began in 2018 are expected to start affecting the training group market year by year this year and next (though it only affects the entry grades, and the short-term impact is limited). Therefore, if the policy has a significant effect on boosting fertility, it is expected to gradually reverse the expectations for the K12 training group market, driving long-term valuation upward