Hong Kong Stock Market Closing (06.19) | Hang Seng Index fell by 1.99%, the market is significantly under pressure, and some low-priced oil and gas stocks are being speculated again

According to the Zhitong Finance APP, as the conflict between Israel and Iran continues to escalate and the Federal Reserve remains inactive, the three major indices of the Hong Kong stock market fell throughout the day, with the Hang Seng Index dropping 500 points in the afternoon. By the close, the Hang Seng Index fell 1.99% or 472.95 points, closing at 23,237.74 points, with a total turnover of HKD 220.099 billion; the Hang Seng China Enterprises Index fell 2.13%, closing at 8,410.94 points; the Hang Seng Tech Index fell 2.42%, closing at 5,088.32 points.

Citi Group's China equity strategist Liu Xianda believes that the Middle East situation has little impact on Hong Kong stocks. Coupled with clearer developments in tariffs compared to before, and the global major central banks' interest rate cuts reducing funding costs, it is expected that Hong Kong stock earnings growth next year may be better than this year. Therefore, the outlook on Hong Kong stocks remains positive, and there is a possibility of further raising the target price in the future. Liu Xianda pointed out that although the instability in the Middle East may dampen market sentiment, it also presents opportunities to buy Hong Kong stocks at low prices.

Blue Chip Performance

CSPC PHARMA (01093) led the decline among blue chips. By the close, it fell 6.4%, closing at HKD 7.61, with a turnover of HKD 2.46 billion, dragging the Hang Seng Index down by 6.67 points. Huaxing Securities pointed out that CSPC PHARMA's revenue in Q1 2025 fell 21.9% year-on-year, but profit performance exceeded expectations, with authorized revenue being a highlight. The revenue from prescription drugs fell 27.3% year-on-year, but authorized revenue reached HKD 718 million, significantly alleviating the pressure from centralized procurement and medical insurance policies, demonstrating the company's ability to convert the commercialization value of its pipeline.

Almost all blue chips were in the red, with only two stocks in the green. Zhongsheng Holdings (00881) fell 5.94%, closing at HKD 11.72, dragging the Hang Seng Index down by 0.84 points; Alibaba Health (00241) fell 5.26%, closing at HKD 4.32, dragging the Hang Seng Index down by 2.5 points; Xinyi Glass (00868) fell 4.68%, closing at HKD 7.34, dragging the Hang Seng Index down by 1.22 points; Sunny Optical Technology (02382) fell 4.28%, closing at HKD 62.65, dragging the Hang Seng Index down by 3.14 points.

Popular Sectors

On the market, large technology stocks collectively fell, with Tencent and Alibaba both down nearly 2%, and Xiaomi down 1.39%. As tensions in the Middle East continue, some low-priced oil and gas stocks were once again speculated, with PetroChina Clean Energy Holdings soaring 170% at one point; the U.S. Senate passed a stablecoin bill, and the stablecoin concept opened high and closed low today, with OSL Group falling over 5%, while Yika rose over 1% against the trend. On the other hand, pharmaceutical stocks and new consumer stocks fell again, with Laopu Gold down over 6%; Chinese brokerage stocks, airline stocks, Apple concept stocks, gold stocks, and automotive stocks all fell.

1. Some low-priced oil and gas stocks were speculated. By the close, PetroChina Clean Energy Holdings (01759) rose 138.74%, closing at HKD 2.65; Jintai Energy Holdings (02728) rose 52.94%, closing at HKD 0.052; Jixing New Energy (03395) rose 34.62%, closing at HKD 1.05; MI Energy (01555) rose 20.93%, closing at HKD 0.052.

Currently, the ongoing conflict between Israel and Iran is the biggest variable regarding U.S. intervention. Reports indicate that senior U.S. officials are preparing for potential strikes against Iran in the coming days. Some insiders suggest there are plans for strikes to be implemented this weekend According to CCTV International News, Israeli Defense Minister Katz stated today (June 19) that the Israeli military has received orders to intensify strikes on strategic targets in Iran's capital, Tehran, to eliminate the threat posed by Iran to Israel. Earlier, Israeli Prime Minister Netanyahu stated that Iran would "pay the full price" for launching a new round of missile attacks against Israel.

2. The concept of stablecoins opened high but closed low. As of the close, OSL Group (00863) fell 5.27% to HKD 11.86; LianLian Digital (02598) fell 4.69% to HKD 9.95; Yika (09923) rose 1.43% to HKD 12.78.

Stablecoin concept stocks saw Circle surge nearly 34% overnight, with its stock price approaching USD 200, setting a new high. The U.S. Senate passed the stablecoin bill on Tuesday local time with a vote of 68 in favor and 30 against, establishing regulatory rules for cryptocurrencies pegged to the U.S. dollar, which will be submitted to the House of Representatives for review. Previously, the Hong Kong Legislative Council passed the "Stablecoin Regulation Draft" on May 21, and the "Stablecoin Regulation" officially became law on May 30, set to take effect on August 1. Tianfeng Securities pointed out that stablecoins are upgrading from "connectors" of crypto assets to a new infrastructure for global payments, with a wave of compliance leading to a rapid increase in incremental funds and scenarios.

3. Gold stocks generally fell. As of the close, Lingbao Gold (03330) fell 8.7% to HKD 9.97; Tongguan Gold (00340) fell 6.18% to HKD 2.43; Zijin Mining (02899) fell 3.85% to HKD 19; China Gold International (02099) fell 3.73% to HKD 69.75.

On the afternoon of June 19, spot gold briefly fell below USD 3,350 per ounce, currently reported at USD 3,366.33 per ounce. The Federal Reserve maintained interest rates unchanged for the fourth consecutive time in June, with the dot plot indicating two rate cuts this year, but the number of officials expecting no rate cuts this year rose to seven, and the expectation for a rate cut next year was reduced to one. Following the interest rate decision announcement, gold prices declined. Citibank stated that the record rise in gold is about to end, predicting that gold prices will fall below USD 3,000 per ounce in the coming quarters. The bank believes that gold, as a highlight among commodities, will struggle to maintain its strong performance.

4. Pharmaceutical stocks fell again. As of the close, Gilead Sciences-B (01672) fell 7.95% to HKD 8.92; Weiya Bio (01873) fell 7.27% to HKD 1.53; Junshi Biosciences (01877) fell 7.76% to HKD 21.4; Hengrui Medicine-B (02142) fell 5.23% to HKD 7.79.

According to reports, on Tuesday morning (local time), U.S. President Trump reiterated his previous threats to impose import taxes on pharmaceutical products "soon" to force pharmaceutical companies to relocate their production bases back to the U.S. In addition, Huazhong Securities recently pointed out that the trading congestion of innovative drugs has reached previous high points, and is currently still in an overheated state. In terms of allocation strategy, previously popular sectors such as innovative drugs, due to high accumulated gains and overheated trading, will face significant volatility or adjustments, with overall allocation cost-effectiveness being relatively weak. The growth technology sector, due to high valuations, also has demands for further adjustments

Popular Volatile Stocks

1. Nanshan Aluminum International (02610) hits a new high, closing up 6.72% at HKD 30.95.

Nanshan Aluminum recently announced plans to establish a joint venture in Indonesia and intends to build a caustic soda project with an annual output of 200,000 tons and an epoxy chloropropane project with an annual output of 165,000 tons on Bintan Island, Indonesia, with a total investment of approximately RMB 1.868 billion. It is reported that Nanshan Aluminum International is a subsidiary of Nanshan Aluminum, primarily engaged in the alumina project in Indonesia, and successfully listed on the Hong Kong Stock Exchange in March 2025.

2. Haitian Flavoring and Food (03288) debuts on the market, closing up 0.55% at HKD 36.5.

Public information shows that Haitian Flavoring and Food is committed to providing high-quality products to meet the seasoning needs of home cooking and dining experiences. The company's main categories include soy sauce, oyster sauce, seasoning sauces, specialty condiments, and others. Among the main products, soy sauce contributes the most to the company's revenue. In 2024, the company's soy sauce revenue ranked first in both the global and Chinese markets, with a market share of 13.2% in China and 6.2% globally.

3. Smoore International (06969) stock price plummets, closing down 9.95% at HKD 17.92.

Smoore International announced that on June 16, shareholder Yiwei Lithium Energy (300014.SZ) plans to reduce its stake in the company by up to 3.5% through block trades, centralized bidding, and other means within one year, involving approximately 216 million shares. Currently, Yiwei Lithium Energy holds 30.73% of the company's total share capital, and after the reduction, it will no longer be the controlling shareholder of the company. It is reported that this is already the third time Yiwei Lithium Energy has extended its reduction plan for Smoore International