Zhitong Hong Kong Stock Exchange Unravels | Early Hype, Lujiazui Forum Expects Core Assets to Strengthen

[Anatomy Dashboard]

The market is already speculating ahead of time at the Lujiazui Forum that favorable policies may be introduced. Today's changes in the securities category reflect this expectation. The Hang Seng Index rose again by 0.60%.

On June 4, South Korea's Central Election Commission announced the presidential election vote count results. Lee Jae-myung was elected as the new president of South Korea's 21st president. South Korea's benchmark stock index, the Korea Composite Stock Price Index (KOSPI), rose nearly 2.66%, more than 20% higher than the recent low (2293.7 points) set in April. This means that the index has entered a technical bull market. Lee Jae-ming said during the election campaign that his goal for the KOSPI index is 5,000 points, but the schedule is unclear. This goal highlights the importance he attaches to the stock market. Let's take a look at its political proposition: “practical diplomacy” will be implemented to maximize national interests and create a peaceful and prosperous future; it will build a peaceful and prosperous Korean peninsula. Overall, it's relatively beneficial for us, but the key is action. Lee Jae-myung clearly promoted the legalization of cryptocurrency spot ETFs, reduced transaction fees, and established a regulatory framework for Korean won stablecoins. OSL Group (00863), a licensed virtual asset trading platform in Hong Kong, saw significant gains of more than 6% today. Furthermore, Li Zaiming's election is expected to ease geographical pressure and form external support to jointly consolidate the advantages of China's shipbuilding industry. The June Gold Stock China Shipbuilding Defense (00317) surged more than 7% today.

As China implements rare earth export controls, global car companies worry that production may be delayed or even interrupted. From Tokyo to Washington, China's export controls have caused strong shock at the corporate boards and government levels of various countries. Officials are urgently looking for limited alternatives, and are worried that production of new cars and other products may come to a standstill before the end of this summer. Diplomats, car manufacturers and other industry executives from India, Japan, and Europe are urgently seeking meetings with Chinese officials to speed up export approvals for rare earth magnets. Jinli Permanent Magnet (06680) mentioned yesterday: the company's revenue in the first quarter was 1,754 billion yuan, up 14.19% year on year; net profit to mother was 161 million yuan, up 57.85% year on year. This year's profit is expected to grow rapidly year over year. Furthermore, the company's production is also expected to increase by 20-30% this year, achieving the logic of increasing both quantity and profit. Today it rose again by more than 11%.

Several lithium resource stocks mentioned yesterday also continued to rise. For example, Longpan Technology (02465), Tianqi Lithium (09696), and Ganfeng Lithium (01772) all rose by more than 4%.

Demand for artificial intelligence has soared, and Meta will buy nuclear power from Constellation Energy. According to a statement on Tuesday, Meta and Constellation Energy signed a 20-year contract to buy electricity for the Clinton power plant beginning in mid-2027, when the state subsidy expires. In recent years, the global energy structure has accelerated its transformation to low carbon, and nuclear power, as a stable and efficient clean energy source, has once again become the focus of countries' strategic layout. CGN Mining (01164): Announced the signing of a 2026-28 three-year natural uranium trading agreement with parent company China Uranium Development. The benchmark price and annual growth coefficient were higher than market expectations. Today, it surged more than 28%, and CNNC International (02302) also rose nearly 12%. Shankao Holdings (00412), which I mentioned a few days ago, also has green energy added power, and today it also surged more than 14%. Xinyi Network Group (01686), which has been deeply involved in the IDC industry for 25 years, is also worth paying attention to.

At the 2025 American Society of Clinical Oncology (ASCO), Innovent Biotech (01801) presented the world's first (first-in-class) clinical phase I study data on treatment of advanced non-small cell lung cancer with PD-1/IL-2α-BIAS bispecific antibody fusion protein IBI363. This is also the third oral report of IBI363 at this year's ASCO conference after colorectal cancer and melanoma. Controlled safety, encouraging efficacy, and long-term survival benefit trends have been observed in immunotherapy-resistant squamous non-small cell lung cancer and wild lung adenocarcinoma. This new anti-cancer drug market is showing high valuations; today it has surged by more than 14%. Junshi Biotech (01877) and June Gold Stock Nuocheng Jianhua (09969) also hit annual highs.

The media quoted sources as reporting that Mingchuang Premium (09896) has hired Motong and UBS to provide consulting services for its subsidiary Toptoy's IPO plan in Hong Kong. According to reports, Mingchuang Premium hopes to introduce new investors such as sovereign wealth funds to TopToy before TopToy goes public. Mingchuang Premium is up more than 4% today.

TOPTOY was founded in December 2020 and has now developed into a trendy gaming platform covering all categories such as blind boxes, building blocks, and figures. The reason it is being proposed to go public now is because this trendy theme is really popular. Naturally, investors want to take advantage of the hot iron to sell at a good price. Bubble Mart (09992) is still at record highs, and today it has risen by more than 5%. Several other consumer leaders are also rushing in. For example, the Michelle Group (02097) rose to a record high of nearly 5%, and the market expects it to enter Hong Kong Stock Exchange next Monday, driving Chabaidao (02555) to soar by more than 13%; the “Gold World Hermes” old store Gold (06181) rose by more than 3%, and domestic product leader Mao Geping (01318) combined with 618's hot sales also surged by more than 11%. Judging from the collective rise in these core consumer goods, capital is already gathering momentum.

China's newly revised “Administrative Rules on Tobacco Monopoly Licenses for E-cigarette Related Manufacturers and Wholesalers” will be implemented in June of this year. All e-cigarette manufacturer licenses will mark approved production capacity. The e-cigarette regulatory system has been upgraded again, and the market expects the industry to develop within regulations, enhancing investors' confidence in the e-cigarette industry. The relevant individual stocks Smore International (06969) and Huabao International (00336) all rose by more than 13%. As an overseas asset integration platform for the China Tobacco system, China Tobacco Hong Kong (06055) is expected to further expand the industrial chain and sales channels through mergers and acquisitions in the future to replicate the growth path of international giants. Today, it is also up more than 8%.

The robot also found an application scenario. Yuejiang (02432) and Pharmacist Gang (09885) signed a strategic cooperation and business deployment agreement. At the initial stage of strategic cooperation, the two sides will take the lead in cooperating robots in pharmacies and pharmacies. At present, the two sides have determined the first implementation project plan, completed tasks such as feasibility verification, technical route research and judgment, technical plan exchange, selection of suitable deployment environments, etc., and have begun to build a test platform. Today, the cross-border rose by more than 6%. The future mainly depends on the execution of orders.

FTSE Russell announced the results of the June 2025 quarterly inspection. FTSE China A50 Index constituent stocks were included in the Bank of Jiangsu and Great Wall Motor was excluded; shares such as BeiGene Shenzhou, Yili shares, SAIC Motor Group, Cyrus, and Huichuan Technology were included in the list of alternative stocks. Selected and alternative varieties are worth paying attention to.

[Section Focus]

According to media reports, Vietnam's parliament passed an amendment deciding to abolish the country's long-standing “two-child” birth restriction policy to cope with the declining birth rate. According to data from Vietnam's Ministry of Health, the country's fertility rate has remained at a historically low level in the past three years. Last year's total fertility rate fell to 1.91, which is significantly lower than the 2.1 required for generational change. The fertility rate in Ho Chi Minh City, the southern economic center, dropped to 1.32 in 2023, highlighting the seriousness of the situation.

According to data released by the Japanese government on Wednesday (June 4), the number of people born in Japan fell below 700,000 for the first time in 2024, down 5.7% from the previous year to 68,6061. This highlights the continuing trend of late marriage and late childbearing in Japan, and also reflects that the Japanese government is facing huge challenges in trying to reverse the fertility trend.

The declining birth rate is a worldwide problem, and the situation in China is not optimistic. Stimulating population growth will be a long-term national policy. Main varieties, assisted reproduction, Jinxin Reproduction (01951); fertility-related drugs (ovulation promotion needles), Hanson Pharmaceuticals (03692), and minimally invasive medicine from medical device suppliers in the field of fertility (00853).

[Individual Stock Mining]

Xinyite.com Group (01686): Data center supply in the Asia-Pacific region will double in the next three years and enter a new cycle of capacity expansion

According to CBRE's latest report, demand in the Hong Kong data center market continues to be strong, driven by the artificial intelligence (AI) boom and the digital transformation of various industries. The bank expects the supply of data centers in the Asia-Pacific region to double in the next three years, but due to limited power supply and lack of infrastructure to support artificial intelligence, the region is expected to face a power gap of 15 to 25 gigawatts by 2028.

Comment: The current demand for data centers mainly comes from IT service providers, e-commerce platforms and banks in mainland China and Hong Kong. Demand for mature markets such as Japan, Australia and South Korea is expected to continue to grow. Singapore's supply is limited, and some Singaporean tenants are considering Hong Kong as an alternative. The company has been deeply involved in the IDC industry in Hong Kong, China for 25 years and has the number one network connectivity service in Asia. The company successively completed two large-scale data centers, MegaGateway and MegaIDC (Phase 1), in 2023-2024, starting a new cycle of production capacity investment. MEGAIDC is the Group's flagship new land project in Tseung Kwan O, providing a total floor area of approximately 1.2 million square feet, and is designed to support up to 180MW of electricity capacity. The first phase of MEGAIDC has now been put into use, providing about 50 MW of electricity capacity. After the project is completed, the total floor area of the company's data center in Hong Kong will reach nearly 2 million square feet, and the power capacity will increase to more than 280 MW. At the same time, some of the company's IDCs still have room for potential power expansion. The company owns and operates a submarine cable landing station (HKIS-1), and another submarine cable landing station (HKIS-2) is under construction.

The company's Mega-i data center is the number one interconnection center in Asia, connecting 9 submarine cable systems from around the world, and has about 15,000 optical fiber interconnect network cables. The company has raised the standard price of optical fiber internet cable by about 10% since March 2024, while the number of optical fiber interconnect network lines continues to grow; the company's customers include customers from leading cloud vendors such as Amazon AWS, Alibaba and Tencent; as of the second half of 2024, the average monthly rent for a single cabinet in the company's IDC computer room is about HK$2,500 per kw/month, and the average monthly EBITDA for a single cabinet reached about HK$2,000 /kw/month, far higher than other international companies in the same industry.