Zhitong Hong Kong Stock Early Knowledge | Nasdaq and S&P hit new highs, precious metals, metals, and mining sectors lead the gains

【Today's Headlines】

Hong Kong Stock Exchange: The first phase of lowering the minimum price fluctuation for stocks in the Hong Kong securities market will be launched on August 4

According to Zhitong Finance APP, following the successful completion of market exercises on June 21, 2025 (Saturday), where exchange participants confirmed their readiness and received approval from relevant regulatory agencies, the Hong Kong Stock Exchange announced on July 21 that the first phase of lowering the minimum price fluctuation for stocks in the Hong Kong securities market ("Phase One") will be launched on August 4, 2025 (Monday). Additionally, as referenced in the customer notice (No.: MDD/25/369) published today on the Hong Kong Stock Exchange website, the price table code for the "Hong Kong Stock Exchange Navigator" market data platform - Securities Market ("OMD-C") and the Mainland Market Data Hub - Securities Market ("OMD-CMMDH") will also be updated accordingly at the launch of Phase One.

Adjustment of the calculation method for the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index

According to the announcement from Hang Seng Indexes, the calculation method for the Hang Seng Hong Kong Stock Connect Innovative Drug Selection Index will have the following updates: modification of stock selection criteria, liquidity and industry requirements; removal of thematic and fundamental factor requirements; modification of constituent stock selection methods and adjustment of weight limits. This new calculation method will take effect during the index review as of June 30, 2025, and the related changes in constituent stocks will be implemented on September 8, 2025.

【Market Outlook】

Nasdaq and S&P reach new highs; precious metals, metals, and mining sectors lead gains

Overnight, U.S. stocks closed with the Dow Jones Industrial Average down 19.12 points from the previous trading day, closing at 44,323.07 points, a decrease of 0.04%; the S&P 500 index rose 8.81 points to close at 6,305.6 points, an increase of 0.14%; the Nasdaq Composite Index rose 78.51 points to close at 20,974.17 points, an increase of 0.38%. The Nasdaq and S&P reached new highs. The precious metals, metals, and mining sectors led the gains, with Century Aluminum rising over 9%, Americas Silver Corporation and Pan American Silver rising nearly 5%, and Hecla Mining rising over 4%. Popular Chinese concept stocks closed mixed, with the Nasdaq Golden Dragon China Index down 0.28%, Huya soaring 16%, and Nio rising nearly 3%. The Hang Seng Index ADR fell, closing at 24,987.99 points, down 6.15 points or 0.02% compared to the Hong Kong close.

New York gold futures rose about 1.6%, reclaiming the $3,400 mark, and the Philadelphia Gold and Silver Index closed up 3.5%.

【Hot Topics Ahead】

Li Qiang signs State Council order to announce the "Housing Rental Regulations"

Premier Li Qiang recently signed a State Council order to announce the "Housing Rental Regulations," which will take effect on September 15, 2025. The regulations aim to standardize housing rental activities, protect the legitimate rights and interests of parties involved in housing rental activities, stabilize housing rental relationships, promote high-quality development of the housing rental market, and accelerate the establishment of a housing system that integrates rental and purchase. The regulations consist of 7 chapters and 50 articles.

GGII: In the first half of 2025, China's installed capacity of power batteries is approximately 288.1 GWh, a year-on-year increase of 44% According to the statistics from the High Industry Research Institute (GGII) based on the compulsory insurance data for new energy vehicles, it is estimated that in the first half of 2025, the sales of new energy vehicles in China will be approximately 567.4 million units, a year-on-year increase of 33%; the installed capacity of power batteries will be approximately 288.1 GWh, a year-on-year increase of 44%.

Multiple departments jointly released the "Implementation Rules for the Pilot Business of Cross-Border Asset Management in Hainan Free Trade Port"

According to the news from the People's Bank of China on July 21, multiple departments jointly released the "Implementation Rules for the Pilot Business of Cross-Border Asset Management in Hainan Free Trade Port." The pilot business supports foreign investors to invest in wealth management products issued by financial institutions within the Hainan Free Trade Port, private asset management products from securities fund futures operating institutions, publicly raised securities investment funds, and insurance asset management products.

Meizhong Jiahe (02453) plans to place approximately 16.94% discount on the placement of 48.7236 million shares, net raising about HKD 259 million

Meizhong Jiahe (02453) announced that on July 22, 2025 (before trading hours), the company entered into a placement agreement with the placement agent. The company plans to place 48.7236 million placement shares to no less than six placees through the placement agent, at a price of HKD 5.54 per share, which is approximately 16.94% lower than the closing price of HKD 6.67 per H-share reported on July 21, 2025, on the Stock Exchange.

Cathay Pacific Airways (00293): In June, Cathay Pacific and Hong Kong Express carried approximately 2.9 million passengers, an increase of 23.3% year-on-year

According to a report from Cathay Pacific Airways (00293), the customer and business president, Liu Kaishi, stated: "The group's passenger and cargo volumes in June increased compared to the same period in 2024. Cathay Pacific and Hong Kong Express carried approximately 2.9 million passengers, an increase of 23.3% compared to the same month last year. Meanwhile, Cathay's cargo volume exceeded 130,000 tons, an increase of 6.3% compared to the same month last year.

Shifut Investment (01049) has developed an AI-powered quantitative trading and community platform named Quantphemes

According to a report from Shifut Financial Services Group (00510) and Shifut Investment (01049), Shifut Investment Group has developed an AI-powered quantitative trading and community platform named Quantphemes.

Meitu Company (01357) issues a profit warning, expecting mid-term adjusted net profit attributable to the parent company to increase by approximately 65% to 72% year-on-year

According to a report from Meitu Company (01357), the company announced that based on non-International Financial Reporting Standards, for the six months ending June 30, 2025, the adjusted net profit attributable to the equity holders of the parent company is expected to achieve a year-on-year increase of approximately 65% to 72% compared to the six months ending June 30, 2024 (the same period last year).

China Longgong (03339) issues a profit warning, expecting net profit of approximately HKD 590 million to 665 million in the first half of 2025, an increase of 29% to 45% year-on-year Zhitong Finance APP news, China Longgong (03339) announced that net profit will significantly increase in the first half of 2025, with net profit expected to be approximately RMB 590 million to RMB 665 million, an increase of 29% to 45% compared to the same period last year.

Duan Chuanliang and China Water Affairs (00855) hold over 54% of Kangda Environmental (06136), triggering a full cash offer

Zhitong Finance APP news, Kangda Environmental (06136) and China Water Affairs (00855) jointly announced that on July 11, 2025 (after trading hours), Mr. Duan Chuanliang, a holder of exchangeable bonds, has delivered an EB notice to Kangda Holdings to exchange for 547 million shares, accounting for approximately 25.55% of the total issued share capital of the company as of the date of this joint announcement, with an exchange price of HKD 0.25 per share.

Dongyang Sunshine Changjiang Pharmaceutical (01558) and Dongyang Sunshine Pharmaceutical's merger agreement approved by shareholders' meeting, expected to list on August 7

Zhitong Finance APP news, Dongyang Sunshine Changjiang Pharmaceutical (01558) and the offeror Guangdong Dongyang Sunshine Pharmaceutical Co., Ltd. jointly announced that the temporary shareholders' meeting and H-share class shareholders' meeting regarding the conditional privatization proposal by the offeror to absorb and merge Dongyang Sunshine Changjiang Pharmaceutical was voted on and officially approved on July 21, 2025.

Hengtou Securities (01476) issues profit warning, expects net profit attributable to shareholders for the first half to increase to approximately RMB 239 million year-on-year

Zhitong Finance APP news, Hengtou Securities (01476) announced that it expects the group to achieve net profit attributable to shareholders of approximately RMB 239 million for the six months ending June 30, 2025, compared to RMB 53.87 million for the six months ending June 30, 2024. The board believes that the group's operating performance has improved compared to the same period in 2024, mainly due to increased revenue from securities brokerage and proprietary investment businesses.

Value Partners Group (00806) issues profit warning, expects mid-term net profit attributable to shareholders of approximately HKD 250 million, a year-on-year increase

Zhitong Finance APP news, Value Partners Group (00806) announced that it expects the group to achieve a net profit attributable to the company's owners of approximately HKD 250 million (unaudited estimate) for the six months ending June 30, 2025, an increase from HKD 37 million in the same period last year. According to the information currently available to the board, the increase is mainly due to the net fair value gains of approximately HKD 240 million from the group's investments (including initial capital investments, investments in subsidiary funds, joint venture investments, and other investments) for the six months ending June 30, 2025, compared to HKD 62 million in the same period last year.

BYD (01211): Plans to distribute 8 bonus shares for every 10 shares and convert 12 shares for every 10 shares from capital reserves

According to BYD's announcement on the Shenzhen Stock Exchange, the company, based on a total share capital of 3,039,065,855 shares, will distribute a cash dividend of RMB 39.74 for every 10 shares to all shareholders, with a total cash dividend of approximately RMB 12,077,248 thousand, and will distribute 8 bonus shares for every 10 shares, converting 12 shares for every 10 shares from capital reserves; If the company's total share capital changes on the record date for the distribution of equity, the company will maintain the amount per share and the distribution ratio unchanged, and will adjust the total amount of distribution and transfer accordingly.

Global New Materials International (06616) Acquisition of Merck Surface Solutions Business Approved by Shareholders' Special Meeting

According to Zhitong Finance APP, Global New Materials International (06616) announced that on July 21, the acquisition of Merck's global surface solutions business in Germany was approved by a special meeting of shareholders. The transaction is priced at €665 million for the cash acquisition of 100% equity in Merck's global surface solutions business unit in Germany. The transaction is expected to be completed by the end of July 2025.

Fufeng Group (00546) Issues Earnings Upgrade, Expected Mid-term Net Profit to Increase by RMB 700 Million Year-on-Year

According to Zhitong Finance APP, Fufeng Group (00546) announced that it expects the group's net profit for the mid-term of 2025 to increase by approximately RMB 700 million compared to the net profit of approximately RMB 1.04 billion for the six months ending June 30, 2024.

Zhongtai Futures (01461) Issues Earnings Upgrade, Expected Mid-term Net Profit Attributable to Shareholders to Increase by Approximately 5415% Year-on-Year

According to Zhitong Finance APP, Zhongtai Futures (01461) announced that it expects the net profit attributable to shareholders for the six-month period ending June 30, 2025, to increase by approximately 5415% compared to the same period in 2024.

Ying'en Biotechnology-B (09606) Key Product DB-1310 Granted Fast Track Designation by the U.S. FDA

According to Zhitong Finance APP, Ying'en Biotechnology-B (09606) announced that its key product DB-1310 (an antibody-drug conjugate targeting human epidermal growth factor receptor 3 (HER3)) has been granted Fast Track designation by the U.S. Food and Drug Administration (FDA) for the treatment of adult patients with advanced/unresectable or metastatic non-squamous non-small cell lung cancer (nsqNSCLC) carrying EGFR exon 19 deletions or L858R mutations who have disease progression during or after treatment with third-generation epidermal growth factor receptor (EGFR) tyrosine kinase inhibitors (TKIs) and platinum-based chemotherapy.

[Stock Highlights]

Harbin Electric (01133) Issues Earnings Upgrade, Expected Mid-term Net Profit Attributable to Parent Company Owners to be Approximately RMB 1.02 Billion, Significantly Increased Year-on-Year

According to Zhitong Finance APP, Harbin Electric (01133) announced that it expects to achieve a net profit attributable to the owners of the parent company of approximately RMB 1.02 billion for the first half of 2025 (compared to approximately RMB 523 million in the same period last year), representing a significant increase year-on-year. The main reason is that the company's operating revenue for the first half of 2025 has significantly increased compared to the same period last year, and the deepening of quality improvement and efficiency enhancement work has achieved positive results, with the gross profit margin of the company's operating business for the first half of 2025 improving compared to the same period last year