Hong Kong stocks closed (09.09) | The Hang Seng Index rose by 1.19%, Alibaba-W increased by over 3%, with strong performance in internet healthcare, gold, and domestic property stocks

According to Zhitong Finance APP, Hong Kong stocks surged again today, with all three major indices rising over 1%. The Hang Seng Index briefly broke through the 26,000 mark in the morning session, reaching its highest point in nearly four years since October 2021. By the close, the Hang Seng Index rose 1.19% or 304.22 points, closing at 25,938.13 points, with a total turnover of HKD 294.033 billion; the Hang Seng China Enterprises Index rose 1.32%, closing at 9,242.4 points; the Hang Seng Tech Index rose 1.3%, closing at 5,828.74 points.

Guoyuan International pointed out that the U.S. non-farm payroll data fell short of expectations, leading the market to increase bets on a rate cut by the Federal Reserve in September. After the Federal Reserve opens up the space for rate cuts, domestic policies may follow suit with relevant easing and favorable measures. Current policy expectations remain another pillar supporting the valuation of Hong Kong stocks, which are expected to maintain resilience in the medium to long term.

Blue Chip Performance

Alibaba-W (09988) performed exceptionally well. By the close, it rose 3.35%, closing at HKD 141.9, with a turnover of HKD 25.572 billion, contributing 69.64 points to the Hang Seng Index. According to Sina Technology, Alibaba will officially announce significant business adjustments on September 10, involving the restart of Koubei and the collaborative development with Gaode on group buying. According to informed sources, this business adjustment involves a major layout in the local life service sector, including the restart of Koubei and the launch of self-operated group buying services by Gaode Map, aiming to rebuild the local life consumption decision-making system, benchmarking against industry giants like Dianping.

In other blue chip stocks, Alibaba Health (00241) rose 10.02%, closing at HKD 7.14, contributing 6.67 points to the Hang Seng Index; JD Health (06618) rose 6.42%, closing at HKD 67.1, contributing 7.08 points to the Hang Seng Index; CSPC Pharmaceutical Group (01093) fell 3.14%, closing at HKD 11.12, dragging down the Hang Seng Index by 4.58 points; PetroChina (00857) fell 2.11%, closing at HKD 7.39, dragging down the Hang Seng Index by 5.45 points.

Popular Sectors

On the market, large tech stocks generally performed well, with Kuaishou rising over 4%, and both Alibaba and JD rising over 3%, while Tencent rose over 1%. Internet healthcare stocks led the gains, with Alibaba Health surging 10% to reach a new high in over two and a half years; expectations of interest rate cuts pushed gold prices to new highs, with most gold stocks strengthening; domestic property stocks performed well, with Country Garden being included in the Hong Kong Stock Connect, and its stock price rising 35% over two days; Chinese brokerage stocks, some new consumption concept stocks, and automotive stocks also rose. On the other hand, rare earth concepts, CRO concepts, and Apple concept stocks led the declines.

1. Most gold stocks rose. Chifeng Jilong Gold Mining (06693) rose 11.55%, closing at HKD 33.42; Shandong Gold (01787) rose 7.2%, closing at HKD 35.44; China Gold International (02099) rose 6.83%, closing at HKD 128.3; Lingbao Gold (03330) rose 6.18%, closing at HKD 17.17.

Due to the weak U.S. labor market, some investors are betting that the Federal Reserve will significantly cut rates by 50 basis points at next week's monetary policy meeting, which is favorable for gold prices. With heightened risk aversion, international gold prices reached new highs. On September 9, spot gold briefly broke through USD 3,650 per ounce, and since the beginning of this year, gold has accumulated a rise of nearly 40% CITIC Futures pointed out that before the interest rate meeting on September 17, the market's dovish expectations are expected to remain strong, and the upward trend of gold is likely to be maintained. CITIC Construction Investment believes that in the medium term, global liquidity provides certain support for gold prices. In this round of global interest rate cuts, non-U.S. central banks are cutting rates ahead of the Federal Reserve, and the spillover effect of global liquidity is boosting gold.

2. Chinese property stocks collectively strengthened. As of the close, Shimao Group (00813) rose 27.87% to HKD 0.39; Country Garden (02007) rose 27.45% to HKD 0.65; Agile Group (03383) rose 10.64% to HKD 0.52; R&F Properties (02777) rose 8.7% to HKD 0.75.

Following Beijing and Shanghai, Shenzhen released new real estate policies on the evening of September 5. It is reported that this new policy significantly relaxes purchase restrictions in non-core areas (all areas except Futian District, Nanshan District, and Bao'an District's Xin'an Street), and commercial loan interest rates will no longer differentiate between first and second homes. Guojin Securities believes that recently, first-tier cities such as Beijing, Shanghai, and Shenzhen have all implemented optimized purchase restriction policies, and it is expected that real estate transaction volumes will rebound in the fourth quarter, further stabilizing the fundamentals. Considering the increased expectations for Fed rate cuts stimulating liquidity, the current valuation of the real estate sector is relatively low, and it is recommended to accumulate real estate stocks on dips.

3. Internet healthcare stocks saw significant gains. As of the close, Alibaba Health (00241) rose 10.02% to HKD 7.14; Dingdang Health (09886) rose 9.76% to HKD 0.9; JD Health (06618) rose 6.42% to HKD 67.1.

According to the "National Medical Products Administration" WeChat public account, in order to implement the "Regulations on the Supervision and Administration of Online Drug Sales," further enhance the compliance awareness and capabilities of parties involved in online drug sales, and standardize the online retail behavior of prescription drugs, the National Medical Products Administration has organized the drafting of the "Compliance Guidelines for Online Retail of Prescription Drugs," which is now open for public comments. Guozheng International pointed out that internet healthcare has been rapidly developing since 2020, with online medical penetration rates, active user numbers, and the number of contracted medical institutions all rising comprehensively. With the continuous expansion of AI technology applications in the medical field in recent years, new growth opportunities will be brought to the internet pharmaceutical industry.

4. Chinese brokerage stocks rose today. As of the close, Everbright Securities (06178) rose 4.98% to HKD 10.96; GF Securities (01776) rose 4.47% to HKD 18.7; Dongfang Securities (03958) rose 4.1% to HKD 7.37; China Merchants Securities (06099) rose 3.42% to HKD 17.26.

JP Morgan's report pointed out that the operating data of mainland brokerages continued to improve in August, with the average daily trading volume of A-shares rising to RMB 2.3 trillion, the highest monthly level in history. The average daily trading amount exceeded RMB 2 trillion for 18 consecutive trading days, and the financing balance rose to a record high of RMB 2.28 trillion at the beginning of September, with new account openings increasing by 35% month-on-month to 2.65 million. Media reports indicate increased interest from both new and old clients in entering the market. The bank maintains a positive view on the brokerage industry, seeing potential for brokerage revenue and investment income to improve in the third quarter

Popular Volatile Stocks

1. Dahang Kegong (02543) debuted on the market, closing up 14.95% at HKD 56.9.

Dahang Kegong is the largest folding bicycle company in mainland China, ranking first in both retail volume and retail value of folding bicycles in 2024. Notably, the allocation results announcement from Dahang Kegong showed that its public offering in Hong Kong received approximately 223,900 valid applications, with a subscription multiple as high as 7558.4 times, far exceeding the 6289 times record set by Maoji Kuichong in 2018, becoming the new "super subscription king" of Hong Kong stocks.

2. Rongchang Biologics (09995) remained strong throughout the day, closing up 7.91% at HKD 104.4.

Rongchang Biologics announced that its self-developed innovative drug Tai Tasi Pu (brand name: Tai Ai®), a globally first dual-target fusion protein for the treatment of Sjogren's syndrome, has been officially accepted for listing application by the Center for Drug Evaluation (CDE) of the National Medical Products Administration, becoming the first biological drug to apply for listing in the field of Sjogren's syndrome globally.

3. Jiangnan Buyi (03306) plummeted after earnings, closing down 12.12% at HKD 19.44.

Jiangnan Buyi released its fiscal year 2025 results for the period ending June this year, with total revenue increasing by 4.64% year-on-year to HKD 5.548 billion; gross profit increased by 4.1% year-on-year to HKD 3.639 billion; gross margin decreased by 0.3 percentage points year-on-year to 65.6%; net profit increased by 6.0% year-on-year to HKD 898 million; the board proposed a final dividend of HKD 0.93 per share, along with an interim dividend of HKD 0.45 per share, totaling approximately HKD 716 million in annual dividends.

4. Skyworth Group (00751) saw its stock price retract, closing down 10.07% at HKD 4.11.

Skyworth Group surged in volume towards the end of trading yesterday, with an intraday high increase of 40%. According to Shanghai Securities News, regarding the privatization speculation in the market, Skyworth Group stated that there are currently no plans for privatization. Yan Zhaojun, a strategy analyst at Zhongtai International, indicated that the order volume at the selling price level is huge, suggesting significant pressure on the stock price near the closing price in the short term. Investors are advised to pay attention to news developments and be aware of short-term pullback risks