Hong Kong stocks close (09.01) | Hang Seng Index rises 2.15%, strong performance in gold and pharmaceutical stocks, Alibaba-W surges over 18% after earnings

According to Zhitong Finance APP, the Hong Kong stock market welcomed a strong start in September, with both the Hang Seng Index and the Hang Seng Tech Index rising over 2%. By the close, the Hang Seng Index was up 2.15% or 539.8 points, closing at 25,617.42 points, with a total turnover of HKD 380.231 billion; the Hang Seng China Enterprises Index rose 1.95%, closing at 9,121.87 points; the Hang Seng Tech Index increased by 2.2%, closing at 5,798.96 points.

The Cathay Pacific Haitong overseas strategy team pointed out that under the Federal Reserve's resumption of interest rate cuts, there is a possibility of an unexpected return of foreign capital to the Hong Kong stock market. From a stock perspective, foreign capital in Hong Kong stocks particularly favors technology and finance. The bank believes that as the negative factors suppressing Hong Kong's technology sector show positive changes, the undervalued and fundamentally stronger Hong Kong technology sector is expected to continue to attract foreign capital.

Blue Chip Performance

Alibaba-W (09988) led the blue chips. By the close, it was up 18.5%, closing at HKD 137.1, with a turnover of HKD 54.917 billion, contributing 353.44 points to the Hang Seng Index. Alibaba recently released its Q1 FY2026 financial report, with cloud business revenue of HKD 33.398 billion, up 26% year-on-year and 11% quarter-on-quarter. Capital expenditure for the quarter reached HKD 38.676 billion, up 220% year-on-year and 57% quarter-on-quarter, with both cloud revenue and capital expenditure significantly exceeding expectations. In response to changes in AI chip policies and supply, the company has developed contingency plans. Regardless of any industry changes, the company will proceed with its planned capital expenditure investment of RMB 380 billion.

In other blue chip stocks, CSPC Pharma (01093) rose 9.14%, closing at HKD 10.99, contributing 11.68 points to the Hang Seng Index; WuXi Biologics (02269) rose 8.37%, closing at HKD 35.98, contributing 16.17 points to the Hang Seng Index; Shenzhou International (02313) fell 2.28%, closing at HKD 60.05, dragging down the Hang Seng Index by 1.83 points; China Merchants Bank (03968) fell 2%, closing at HKD 47.04, dragging down the Hang Seng Index by 5.92 points.

Popular Sectors

On the market, most large technology stocks rose, with Alibaba's stock price soaring over 18% after earnings, Baidu and JD.com rising over 3%, and Tencent rising over 1%. Risk aversion and interest rate cut expectations boosted gold prices, with gold stocks leading the gains, as China Gold International and Zhaojin Mining reached new highs; pharmaceutical stocks strengthened again, with Clover Biotech soaring 34%; the industry welcomed multiple catalysts, with chip stocks opening high but closing low, as SMIC rose nearly 5%; some domestic property stocks, coal stocks, and robotics concepts rose. On the other hand, automotive stocks showed mixed trends, with Nio rising over 4%, while GAC Group fell over 3% after earnings.

1. Gold stocks led the gains. By the close, Tongguan Gold (00340) rose 16%, closing at HKD 2.32; China Gold International (02099) rose 11.33%, closing at HKD 121.8; Zhaojin Mining (01818) rose 8.96%, closing at HKD 26.26; Zijin Mining (02899) rose 7.74%, closing at HKD 27.56.

Due to the resonance of risk aversion and interest rate cut expectations, international gold prices rose significantly. On September 1, spot gold briefly broke through USD 3,480 per ounce, reaching a new high since April this year. Guosen Securities pointed out that after half a year, they are once again strategically bullish on gold, mainly due to the shift from "insufficient global safe-haven assets" to "doubts about the independence of the Federal Reserve," leading to a second depreciation of the dollar's credit The continuous allocation by global central banks remains a necessary condition for the stability of gold prices, and the expansion of cryptocurrency supply is not the main trading line impacting gold prices this year. Huaxi Securities expresses optimism about future gold prices, benefiting from the rise in gold prices, with enhanced profit expectations for gold resource stocks. Currently, the valuation of gold stocks is at a relatively low level, and attention should be paid to the allocation opportunities in gold stocks.

2. Pharmaceutical stocks strengthen again. As of the close, Clover Biopharmaceuticals-B (02197) rose 34.88% to HKD 1.16; JACOBY-B (01167) rose 23.3% to HKD 10; InnoCare Pharma-B (09606) rose 10.65% to HKD 349.2; WuXi Biologics (02269) rose 8.37% to HKD 35.98.

In the first half of this year, the performance of Hong Kong-listed pharmaceutical companies was overall stable, with Heng Rui Medicine achieving record highs in both revenue and profit; Hansoh Pharmaceutical's milestone revenue exceeded expectations, and management raised the annual guidance; China Biopharmaceutical achieved double-digit revenue growth, etc. Notably, the World Lung Cancer Conference (WCLC) in 2025 and the European Society for Medical Oncology (ESMO) annual meeting will be held in September and October, respectively, where a series of research results of domestic innovative drugs will be showcased, including Akeso's AK112 and InnoCare's DB-1311. Haitong International believes that Hong Kong pharmaceutical companies have robust cash flow, rich R&D pipelines, and gradually normalizing income from external licensing, and remain optimistic about the continued benefits for major Hong Kong pharmaceutical companies in this round of pharmaceutical value reassessment.

3. Chip stocks opened high but closed low. As of the close, SMIC (00981) rose 4.86% to HKD 63.65; Hua Hong Semiconductor (01347) fell 3.16% to HKD 52.1.

Recently, merger and acquisition activities in the semiconductor industry have significantly increased. Hua Hong announced that it plans to acquire 97.5% of Huali Micro's equity through the issuance of shares and cash payment and raise matching funds; SMIC stated that it is planning to issue A-shares to purchase 49% of the minority equity of SMIC North. In addition, Alibaba's latest financial report shows that its quarterly AI + cloud Capex reached 38.6 billion yuan, with a three-year plan of 380 billion yuan to build AI infrastructure, driving the expansion of computing power demand. China International Capital Corporation points out that under the risks of Sino-U.S. technology friction and the Nvidia supply chain, the strong demand from domestic cloud vendors like Alibaba may shift towards domestic computing power, which is an important catalyst for the prosperity of domestic computing power, and segments of the industry chain such as IDC and computing power leasing are also expected to benefit.

4. Some domestic property stocks rise. As of the close, China Overseas Grand Oceans Group (00081) rose 8.41% to HKD 2.45; Sunac China (01918) rose 5.26% to HKD 1.6; China Jinmao (00817) rose 4.11% to HKD 1.52; Vanke Enterprise (02202) rose 2.07% to HKD 5.42.

The China Index Academy recently disclosed the sales situation of the top 100 real estate companies in August, with the total sales of the top 100 real estate companies from January to August reaching 232.705 billion yuan, a year-on-year decrease of 13.3%, consistent with the decline from January to July. Guotou Securities points out that the State Council meeting on August 18 proposed to consolidate the market, and further home purchase support policies were introduced in Beijing and Shanghai, intending to support the stabilization and recovery of the industry, with subsequent cities likely to follow up on demand-side optimization With the transformation of urban villages releasing improvement demand, real estate companies are expected to increase their launch efforts in the "Golden September." Coupled with the opening of the policy toolbox, the market is expected to show a mild recovery trend, with projects supported by "good products + core locations" being more competitive.

Popular Active Stocks

1. Huajian Medical (01931) performed strongly throughout the day, closing up 15.89% at HKD 11.23.**

Huajian Medical announced that its wholly-owned subsidiary FinalTouch Ltd. intends to conditionally agree to acquire 20.31% of the shares held by the seller in Guofu Quantum for approximately HKD 3.142 billion, to be paid by issuing consideration shares. Upon completion of the acquisition, Huajian Medical will become the major shareholder of the target company.

2. Huilyang Technology (01860) strengthened after earnings, closing up 14.1% at HKD 16.1.**

Huilyang Technology announced its mid-term results for 2025. During the reporting period, the group's profitability continued to enhance, with its core programmatic advertising platform Mintegral performing well, driving the group to achieve revenue of USD 938 million, a significant increase of 47% year-on-year; adjusted EBITDA recorded USD 88.681 million, a year-on-year increase of 41%.

3. BYD Electronics (00285) performed well, closing up 7.09% at HKD 44.1.**

BYD Electronics released its mid-term results for 2025, with revenue of RMB 80.606 billion, an increase of 2.58% year-on-year; profit attributable to shareholders was RMB 1.73 billion, an increase of 13.97% year-on-year. The company is accelerating its layout in new tracks such as AI data centers and AI robots, with new intelligent product business achieving revenue of approximately RMB 7.209 billion during the period.

4. Bank of China Hong Kong (02388) reached a new high, closing up 6.7% at HKD 37.58.**

Bank of China Hong Kong released its mid-term results for 2025, with profit attributable to shareholders of HKD 22.12 billion, an increase of 10.54% year-on-year; it plans to distribute an interim dividend of HKD 0.58 per share. Additionally, it has been reported that Bank of China Hong Kong plans to apply for a stablecoin issuer license and aims to be among the first batch of approved issuers. The deadline for the first batch of applications is the end of September.

5. GAC Group (02238) faced pressure, closing down 3.68% at HKD 3.4.**

GAC Group released its mid-term results for 2025, with sales revenue of RMB 42.611 billion, a decrease of 7.88% year-on-year; the loss attributable to equity holders was RMB 2.538 billion, compared to a profit of RMB 1.516 billion in the same period last year. In the second quarter alone, the company reported a net profit attributable to the parent of -1.81 billion, turning negative year-on-year, with a larger loss compared to the previous quarter