Hong Kong Stock Market Closing (09.15) | Hang Seng Index closed up 0.22%, lithium battery and automotive industry chain shine, CATL rose over 7% to set a new high

According to Zhitong Finance APP, Hong Kong stocks opened lower today but rose throughout the day. The Hang Seng Index and the Hang Seng China Enterprises Index briefly fell in the afternoon but quickly rebounded. By the close, the Hang Seng Index was up 0.22% or 58.4 points, at 26,446.56 points, with a total turnover of HKD 290.195 billion; the Hang Seng China Enterprises Index rose 0.21%, at 9,384.76 points; the Hang Seng Tech Index increased by 0.91%, at 6,043.61 points.

Dongxing Securities pointed out that the Federal Reserve's interest rate cuts will benefit Hong Kong stocks in the short term, but the market faces expectations of marginal weakening in fundamentals, so the mid-term gains will depend on the recovery of corporate fundamentals. Additionally, further increases in Hong Kong stocks will require new momentum. Recently, incremental funds have significantly increased their allocation to leading technology and internet stocks, but are more inclined towards individual stock logic. Foreign capital is paying attention to Chinese assets, but large-scale inflows of incremental funds still need to observe the actual improvement in economic fundamentals.

Blue Chip Performance

WuXi Biologics (02269) led the blue chips. By the close, it was up 6.47%, at HKD 38.84, with a turnover of HKD 1.983 billion, contributing 13.66 points to the Hang Seng Index. Credit Lyonnais previously pointed out that the profitability and valuation of the CXO industry are sensitive to changes in the funding environment, and the bank expects potential interest rate cuts in the U.S. in the second half of the year to boost market preference for the CXO sector. Compared to the first half of the year, in a more favorable funding environment in the second half of this year and next year, global biotech companies will increase R&D investment, while pharmaceutical companies will also expand R&D spending to alleviate patent barrier pressures, which will continue to benefit WuXi Biologics.

In other blue chip stocks, Li Auto-W (02015) rose 4.56%, at HKD 97.55, contributing 9.26 points to the Hang Seng Index; Nongfu Spring (09633) rose 4.11%, at HKD 54.45, contributing 6.83 points; China Resources Beer (00291) fell 2.65%, at HKD 27.92, dragging down the Hang Seng Index by 1.96 points; China Resources Mixc Lifestyle (01209) fell 2.61%, at HKD 41.76, dragging down the Hang Seng Index by 1.17 points.

Popular Sectors

On the market, most large technology stocks rose, with Alibaba up over 2%, Kuaishou up 1%, and Meituan up 0.83%. The lithium battery sector led the gains, with CATL soaring 7% to refresh its listing high; most pharmaceutical stocks strengthened, with Jiateng Ankang surging 115%; the Ministry of Industry and Information Technology and others intensified efforts to promote automobile consumption, leading to strong performance in the automotive industry chain; coal stocks rose in the afternoon, with Yanzhou Coal Mining up over 5%; gaming stocks, robotics concept stocks, and others were also in the green. On the other hand, gold stocks generally fell today, with Chifeng Jilong Gold down nearly 5%; wind power, catering, and domestic real estate stocks declined.

1. The lithium battery sector performed well. CATL (03750) rose 7.44%, at HKD 465; Ganfeng Lithium (01772) rose 2.55%, at HKD 34.64; Zhongxin Innovation (03931) rose 2.39%, at HKD 27.4.

On September 12, the National Development and Reform Commission and the National Energy Administration issued the "Special Action Plan for the Large-Scale Construction of New Energy Storage (2025-2027)," which proposed that by 2027, the installed capacity of new energy storage nationwide will reach over 180 million kilowatts, driving direct investment in projects of about 250 billion yuan, with lithium-ion battery storage still being the main technology route for new energy storage CITIC Construction Investment pointed out that the lithium battery sector has already realized market demand exceeding expectations for 2025. The current core issue is whether the demand forecast for 2026 will continue to be revised upwards. Future attention should be paid to energy storage bidding and installation data, the confidence level of the 2026 guidance, the continuation of policies such as the vehicle trade-in program for 2026, and lithium battery production scheduling information. The outlook for lithium batteries and energy storage remains bullish.

Citi Research indicated that some domestic battery companies will benefit from favorable policies, among which CATL, as the global leader in electric vehicle and energy storage battery manufacturing, is expected to see its profit growth accelerate to a year-on-year increase of 37% this year; it currently has a target price of HKD 535 for H-shares and a "Outperform" rating. Additionally, Zhongchuang Xinhang, as the fourth largest electric vehicle and energy storage battery manufacturer globally, is expected to achieve a compound annual growth rate of 76% in profits from 2025 to 2027, with a target price of HKD 38 and an "Outperform" rating.

2. CRO concept stocks perform strongly. As of the close, Kanglong Huacheng (03759) rose 9.38% to HKD 25.88; Zhaoyan New Drug (06127) rose 8.07% to HKD 25.18; WuXi Biologics (02269) rose 6.47% to HKD 38.84.

The National Medical Products Administration recently proposed further optimizing the review and approval process for clinical trials of innovative drugs. For clinical trial applications of innovative drugs that meet the requirements, the review and approval will be completed within 30 working days after acceptance. In addition, Zhongtai Securities pointed out that since 2024, although there have been fluctuations in overseas CPI monthly data, overseas markets are expected to gradually enter a rate-cutting cycle, with expectations for improvements in investment and financing likely to marginally improve, and some companies have already seen order recovery. The firm expects that external demand for CRO/CDMO and domestic preclinical CRO will usher in valuation recovery opportunities. The CRO sector has been significantly affected by domestic and foreign investment and financing environments and adverse factors, but as domestic policies gradually take effect, the sector is expected to gradually recover.

3. Most automotive industry chain stocks rise. As of the close, Li Auto-W (02015) rose 4.56% to HKD 97.55; BYD Company (01211) rose 3.44% to HKD 108.1; Zhejiang Shibao (01057) rose 11.88% to HKD 5.37; Nexperia (01316) rose 6.34% to HKD 7.21.

Recently, the Ministry of Industry and Information Technology and eight other departments issued the "Automotive Industry Stabilization and Growth Work Plan (2025-2026)." The plan sets the main goals: In 2025, strive to achieve annual automobile sales of about 32.3 million units, a year-on-year increase of about 3%, of which new energy vehicle sales are expected to be about 15.5 million units, a year-on-year increase of about 20%; maintain stable growth in automobile exports; and achieve a year-on-year increase of about 6% in the added value of the automobile manufacturing industry. In addition, the plan proposes to promote the industrial application of intelligent connected technology, advance the access and road testing of intelligent connected vehicles, conditionally approve the production access of L3-level models, and promote the improvement of laws and regulations related to road traffic safety and insurance.

4. Coal stocks rise in the afternoon. As of the close, Yanzhou Coal Mining Company (01171) rose 5.49% to HKD 9.8; China Qinfa (00866) rose 5.17% to HKD 3.05; China Shenhua (01088) rose 2.37% to HKD 38; China Coal Energy (01898) rose 1.06%, closing at HKD 9.57.

On September 15, the domestic double coke futures market surged, with both coking coal and coke main contracts rising over 5% during the session. According to Mysteel, a coal mine in Zhongyang, Lüliang, Shanxi Province, suspended production on September 14, with the resumption time currently uncertain. The mine has an approved production capacity of 1.2 million tons. Zheshang Securities pointed out that the seasonal expectations in September are suppressing coal prices, with spot prices gradually approaching long-term contracts. Current coal prices are expected to bottom out and rebound, providing opportunities for left-side layout. As coal prices continue to converge with long-term contract coal (low calorific value inversion), downstream purchasing enthusiasm is expected to increase. Looking ahead to the fourth quarter, supply and demand are expected to gradually balance, with coal prices steadily rising, maintaining an "optimistic" rating for the industry. Focus on flexible thermal coal companies and distressed turnaround coking coal and coke companies.

Popular Active Stocks

1. WuXi AppTec-B (02617) surged again, closing up 115.58% at HKD 415.

WuXi AppTec was listed on June 23, and in less than three months, the current stock price has skyrocketed 30 times from the IPO price of HKD 13.15. On September 10, WuXi AppTec announced that its core product, Tiengoti, in combination with Fulvestrant, for the treatment of hormone receptor-positive (HR+) and human epidermal growth factor receptor 2-negative or low-expressing (HER2-) recurrent or metastatic breast cancer, has received clinical implied approval from the National Medical Products Administration on September 10, 2025.

2. Lion Group Holdings (02562) strengthened significantly, closing up 25.34% at HKD 19.24.

Lion Group Holdings announced that it has signed a legally binding letter of intent for investment in target companies that aim to lead in artificial intelligence (AI), blockchain, decentralized finance, and stablecoin innovation. As part of the proposed acquisition, the management and founders of the target group will provide income and profit guarantees for three years. The cost of the proposed acquisition will be paid through the issuance of new shares of the company.

3. Strategic cooperation reached on RWA tokenization plan, Delin Holdings (01709) rose 8% to HKD 3.78; Winner Fashion (03709) rose 5.88% to HKD 8.47.

Delin Holdings and Winner Fashion jointly announced that on September 12, 2025, Winner and Delin Holdings signed a strategic cooperation and investment agreement, under which Delin Holdings conditionally agreed to subscribe for subscription shares at the subscription price upon completion, while Winner conditionally agreed to issue subscription shares at the subscription price; and Delin Holdings and Winner have reached a consensus on the overall framework and direction for the RWA tokenization plan based on the strategic cooperation.

4. Shanghai Fudan (01385) faced pressure, closing down 3.77% at HKD 37.82. On September 12, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) added 23 Chinese entities to the Entity List. Among them are companies such as Fudan Microelectronics in the semiconductor field. On September 14, Fudan Microelectronics stated in a WeChat public account article that the company has strengthened the strategic reserves of wafers and key raw materials for its core product lines, with inventory increasing from approximately 600 million yuan at the end of 2020 to about 3.1 billion yuan by the end of the first half of 2025, of which raw materials and work-in-progress total approximately 2.1 billion yuan, effectively enhancing the stability and risk resistance of the supply chain, providing assurance for sustained and stable operations