Zhitong Hong Kong Stocks Early Insights | The Timing of the Federal Reserve's Rate Cut Approaches, US Stocks Rebound Collectively

[Today's Headlines]

The Timing of the Federal Reserve's Rate Cut Approaches, Jackson Hole Annual Meeting Becomes the Focus

Analyst Divyang Shah stated that the U.S. July non-farm payroll report not only fell short of expectations but also saw a significant revision of previous values. However, this is not a typical recession signal, but rather an indication that the economy is stagnating under the impact of tariffs, waiting for policy uncertainty to dissipate. The biggest impact of the data is the rekindling of expectations for a Federal Reserve rate cut—September and October meetings have once again become possible points: currently, the market is pricing in an 80% probability of a rate cut in September and over 75% in October. The December FOMC meeting has already been taken into account, and now the probability of a rate cut has also risen to 80%. August was originally expected to be a month of low volatility, but it now seems that significant event risks are coming in succession, with the next inflation report being particularly critical, and more importantly, the Jackson Hole central bank annual meeting.

Citigroup has adjusted its bearish forecast for gold, with analysts now expecting that due to the deterioration of the U.S. economy and tariffs potentially driving up inflation, gold prices are likely to rise to record highs in the short term. Federal Reserve's Daly: The timing of a rate cut is approaching, and the number of rate cuts this year is more likely to exceed two.

[Market Outlook]

U.S. Stock Indices Rebound Collectively, Dow Jones Recovers Previous Day's Losses

Overnight, U.S. stocks closed with the Dow Jones up 585.06 points, an increase of 1.34%, closing at 44,173.64 points; the Nasdaq rose 403.45 points, an increase of 1.95%, closing at 21,053.58 points; the S&P 500 index rose 91.93 points, an increase of 1.47%, closing at 6,329.94 points. Tesla (TSLA.US) rose 2%, Meta (META.US) rose 3.5%, NVIDIA (NVDA.US) rose 3.6%. The Nasdaq Golden Dragon China Index closed up 1.3%, XPeng (XPEV.US) rose 4.4%, and JD (JD.US) rose 2.3%.

[Hot Topics Ahead]

Chairman Li Ka-shing of Cheung Kong: Never Intended to Sell Property at 79 Deep Water Bay Road

On August 4, Cheung Kong Holdings Chairman Li Ka-shing clarified: We have never intended to sell the property at 79 Deep Water Bay Road. Reports and posts on certain online and social media regarding the sale of the property at 79 Deep Water Bay Road are entirely fictional, unfounded, and lack factual basis.

Chifeng Jilong Gold Mining (06693): Subsidiary Obtains New Mining Rights and Changes Mining and Exploration Rights

Chifeng Jilong Gold Mining announced that its subsidiary, Liaoning Wulong Gold Mining Co., Ltd., obtained a mining license through exploration transfer, and renewed and changed two mineral resource exploration licenses; its subsidiary, Chifeng Jilong Mining Co., Ltd., changed an existing mining right.

Zhonghui Biotechnology-B (02627) Margin Subscription Exceeds 1793 Times

Vaccine company Zhonghui Biotechnology-B will close its subscription tomorrow. As of now, brokers have lent at least HKD 93.052 billion in margin for it, with the public offering fundraising amounting to HKD 51.84 million, equivalent to over 1793 times oversubscription. Zhonghui Biotechnology plans to raise up to HKD 518 million and will be listed this Friday, with CITIC Securities and CMB International as sponsors. Zhonghui Biotechnology has two core products, including a quadrivalent influenza virus subunit vaccine and a research and development freeze-dried human rabies vaccine The company's loss in the first quarter of this year expanded to RMB 87.3 million year-on-year.

Yuejiang (02432) proposes to implement full circulation of H shares

According to Zhitong Finance APP, Yuejiang (02432) announced that the board of directors reviewed and approved the proposal for the full circulation of H shares on August 4, 2025, which intends to convert 19,688,106 domestic unlisted shares (domestic shares) held by certain shareholders of the company into H shares of the company, accounting for approximately 4.65% of the total issued shares of the company as of the date of this announcement (full circulation of H shares). After completing the relevant filing and obtaining all necessary approvals (including filing with the China Securities Regulatory Commission) and complying with all applicable laws, regulations, and rules, these domestic shares will be converted into H shares. The company will also apply to the Stock Exchange for approval for the listing and trading of these H shares on the main board of the Stock Exchange.

Xianruida Medical-B (06669): Registration application for sirolimus drug-coated coronary balloon dilation catheter approved

Xianruida Medical announced that the registration application for its sirolimus drug-coated coronary balloon dilation catheter ACOART CANNA was approved by the National Medical Products Administration of China on July 31, 2025. This product is used for the dilation treatment of primary coronary bifurcation lesions with a vessel diameter of ≥2.0mm and ≤4.0mm. Clinical trial results showed that the target lesion branch vessel diameter stenosis rate at 9 months post-operation was 30.52%, with no statistically significant difference compared to the control group's 33.46%, and no abnormal risks or events were observed.

Zhongji Changshou Science (00767) plans to acquire 100% equity of Comprehensive Cell Bank

According to Zhitong Finance APP, Zhongji Changshou Science (00767) announced that on August 4, 2025, the company (buyer) entered into a non-binding memorandum of understanding with China International Orthopedic Medical Group Co., Ltd. (seller), under which the buyer intends to acquire (by itself or through its wholly-owned subsidiary) 100% of the equity of Comprehensive Cell Bank Limited (target company) that the seller intends to sell. Based on the information provided by the seller, the target company mainly engages in the research and development transformation of cell therapy, cell drugs, and health longevity management services. The target company currently holds the Comprehensive Cell Bank.

China Tongfu (01763) 33.79% equity transferred without compensation, China National Nuclear Corporation becomes the direct controlling shareholder

According to Zhitong Finance APP, China Tongfu (01763) announced that the company received a notice from its direct controlling shareholder China Baoyuan Investment Co., Ltd. (China Baoyuan) that due to adjustments in business layout and strategic planning, China Baoyuan intends to transfer all of its 108 million domestic shares (approximately 33.79% of the total issued share capital of the company as of the date of this announcement) without compensation to the company's ultimate controlling shareholder China National Nuclear Corporation (China Nuclear Group).

Guoquan (02517) releases interim results, profit attributable to shareholders of RMB 183 million, an increase of 113.22% year-on-year According to the Zhitong Finance APP, Guoquan (02517) announced its performance for the six months ending June 30, 2025, with revenue of RMB 3.24 billion, an increase of 21.56% year-on-year; profit attributable to the parent company was RMB 183 million, an increase of 113.22% year-on-year; basic and diluted earnings per share were RMB 0.0684.

Liaogang Co., Ltd. (02880) released a performance forecast for the first half of the year, with a net profit attributable to the parent of RMB 956 million, an increase of 110.78% year-on-year.

According to the Zhitong Finance APP, Liaogang Co., Ltd. (02880) released its half-year performance forecast for 2025, reporting total operating revenue of RMB 5.693 billion, an increase of 5.93% year-on-year; net profit attributable to shareholders of the listed company was RMB 956 million, an increase of 110.78% year-on-year; basic earnings per share were RMB 0.04.

LeCang Logistics (02490) issued a profit warning, expecting mid-term profits to increase by 759% to 993%.

According to the Zhitong Finance APP, LeCang Logistics (02490) announced that the group expects to achieve a profit of approximately RMB 110 million to RMB 140 million for the six months ending June 30, 2025, an increase of 759% to 993% compared to the profit of RMB 12.8 million for the six months ending June 30, 2024.

Yimai Sunshine (02522) issued a profit warning, expecting mid-term net profit to increase by approximately 1350% to 1550% year-on-year.

According to the Zhitong Finance APP, Yimai Sunshine (02522) announced that the group expects to achieve revenue of approximately RMB 450 million to RMB 480 million for the six months ending June 30, 2025, compared to revenue of approximately RMB 413.7 million for the six months ending June 30, 2024, representing a year-on-year increase of approximately 8.77% to 16.03%; and net profit is expected to be between approximately RMB 14.5 million and RMB 16.5 million, compared to a net profit of approximately RMB 1 million for the six months ending June 30, 2024, representing a year-on-year increase of approximately 1350% to 1550%.

Yuan Zheng Technology (02488) released mid-term results, with a net profit attributable to the parent of RMB 195 million, an increase of 27.74% year-on-year.

According to the Zhitong Finance APP, Yuan Zheng Technology (02488) released its mid-term results for 2025, reporting operating revenue of RMB 982 million, an increase of 9.75% year-on-year; net profit attributable to the parent was RMB 195 million, an increase of 27.74% year-on-year; basic earnings per share were RMB 0.469; and it proposed to distribute an interim dividend of RMB 0.31 per share.

Biossance -B (02315): Expected net profit for the first half of 2025 is approximately RMB 42.7 million to RMB 52.7 million. Baiaosaitu -B announcement, it is expected that the operating income in the first half of 2025 will be approximately RMB 616 million to RMB 626 million, an increase of about 50.1% to 52.5% year-on-year. The net profit is expected to be approximately RMB 42.7 million to RMB 52.7 million, turning from loss to profit year-on-year. The R&D expenses are expected to be approximately RMB 206 million to RMB 216 million, an increase of about 27.5% to 33.6% year-on-year. The growth in performance is mainly attributed to the company's continuous efforts to expand overseas markets and the growth of domestic business, as well as the promotion of lean management to enhance profitability.

Fenbi (02469) releases semi-annual performance forecast, anchors AI strategic transformation, focuses on long-term advantages

According to Zhitong Finance APP, on August 4, Fenbi (02469) released its semi-annual performance forecast for 2025, expecting revenue in the first half to be no less than RMB 1.472 billion, with net profit no less than RMB 215 million, and adjusted net profit no less than RMB 260 million. The performance forecast shows that as of June 30, 2025, the AI question-answering system class launched by Fenbi has sold approximately 50,000 sessions, with collections of about RMB 20 million. According to statistics, 90% of the students were users who registered on the company's app but had not paid before 2025, and they completed the payment conversion after the launch of the AI large class priced at RMB 399. Currently, Fenbi's AI large class is only open for civil service subjects, with plans to launch AI large classes covering more subjects within 2025.

【Stock Highlights】

Xindong Company (02400) issues earnings surprise, expects net profit in the first half to be no less than RMB 790 million, an increase of about 215% year-on-year

Zhitong Finance APP news, Xindong Company (02400) announced that it expects the group to achieve revenue of no less than RMB 3.05 billion in the first half of 2025, an increase of about 37% year-on-year; and expects net profit to be no less than RMB 790 million, an increase of about 215% year-on-year.

Xindong Company (02400) announced that on August 4, 2025, the buyer (an indirect wholly-owned subsidiary of the company) (together with other parties) entered into a share purchase agreement with the target company MiAO (Cayman) Limited, whereby the buyer conditionally agrees to subscribe for and purchase, and the target company conditionally agrees to issue 7.0864 million shares of Series B1 preferred stock, accounting for approximately 5.30% of the target company's issued share capital on a fully diluted and converted basis immediately after the closing, at a price of USD 14 million. Upon completion of the purchase, the buyer will hold 5.30% of the target company's equity, and the target company will not become a subsidiary of the company