Hong Kong stocks closed (07.14) | Hang Seng Index closed up 0.52%, computing power, hardware, and non-ferrous stocks rebounded strongly, and China Aluminum (02600) led the blue chip

The Zhitong Finance App learned that Hong Kong stocks opened low and moved higher today, and the three major indices turned strong in the afternoon. At the close, the Hang Seng Index rose 0.52% or 127.01 points to 24340.73 points, with a full-day turnover of HK$312.916 billion; the Hang Seng State-owned Enterprises Index rose 0.46% to 8103.08 points; and the Hang Seng Technology Index rose 0.06% to 4679.46 points.

Guoyuan International pointed out that in the short term, continued capital inflows to the south and moderately loose domestic monetary policy still support Hong Kong stocks; however, increased uncertainty about US inflation, employment, and monetary policy expectations, US CPI in June, Federal Reserve Chairman Walsh's congressional hearing, and changes in the Middle East situation may all trigger repricing of overseas interest rates and risk appetite.

Blue-chip stock performance

China Aluminum (02600) led the blue chip increase. At the close, it rose 9.59% to HK$8.23, with a turnover of HK$811 million, contributing 4.18 points to the Hang Seng Index. China Aluminum is pleased. The company expects to achieve net profit of RMB 11.2 billion to RMB 12.2 billion in the first half of 2026, an increase of 58% to 73% over the previous year. This means net profit for the second quarter was 5.67 billion yuan to 6.67 billion yuan, up 61% to 89% year on year and 3% to 21% month on month.

In terms of other blue-chip stocks, BYD Electronics (00285) rose 8.29% to HK$23.24, contributing 2.21 points to the Hang Seng Index; Luoyang Molybdenum (03993) rose 7.34% to HK$15.95, contributing 6.22 points to the Hang Seng Index; Old Shop Gold (06181) fell 2.96% to HK$373.8, dragging down the Hang Seng Index by 1.15 points; and Ali Health (00241) fell 1.49% to HK$3.3, dragging down the Hang Seng Index by 0.51 points.

Popular sector aspects

On the market, large tech stocks had mixed ups and downs, with Tencent falling 0.31% and Alibaba rising 0.09%. Computing power hardware stocks such as storage and PCB rebounded strongly today. Jiantao's multilayer board rose more than 14%, and GigaYi Innovation rose more than 9%; mid-term performance surged, with outstanding performance in non-ferrous metals; domestic and foreign demand resonated with the industry, and CRO concepts generally rose; the US-Iran conflict continued to escalate, and oil and gas stocks rose again; and automobile, transportation, and coal stocks performed well. On the other side, commercial space stocks continued to pull back.

1. Computing power hardware stocks rebounded strongly. At the close, Jiantao Laminate (01888) rose 14.2% to HK$58.3; Guanghe Technology (01989) rose 11.2% to HK$140.6; Changfei Optical Fiber Cable (06869) rose 10.16% to HK$153.9; and GigaYi Innovation (03986) rose 9.54% to HK$689.

A number of core PCB manufacturers intensively released their performance forecasts for the first half of the year last night. The results were all the same, and there was a sharp increase from month to month, verifying the overall recovery in industry prosperity. Among them, Shengyi Electronics expects net profit to be increased by 104% to 114% year on year in the first half of the year; Shanghai Electric Co., Ltd. expects net profit to increase by 68.17% to 78.28% year on year. Dongwu Securities pointed out that it entered the semi-annual report performance forecast intensive disclosure window in July, and the AI hardware industry chain mainly covered by the electronic sector is one of the directions in which the 2026 semi-annual report is concentrated.

It is worth mentioning that the South Korean stock market was on a “roller coaster” today. Korea's KOSPI index plummeted by more than 5% during the intraday period, then quickly picked up and turned upward in the afternoon. According to reports, South Korea's financial regulators will hold a high-level meeting on Thursday to discuss the risks and countermeasures of single-stock leveraged ETFs. Furthermore, according to data released by the General Administration of Customs on the 14th, China's import and export quota for computing power hardware such as electronic components and computer components reached 5.13 trillion yuan in the first half of the year, a sharp increase of 56.6% over the previous year.

2. Non-ferrous stocks bottomed out and rebounded. At the close, China Aluminum (02600) rose 9.59% to HK$8.23; Luoyang Molybdenum (03993) rose 7.34% to HK$15.95; and Minmetals Resources (01208) rose 7.07% to HK$7.57.

Recently, a number of leading companies in the nonferrous metals industry issued pre-performance announcements for the first half of the year. Among them, China Aluminum expects net profit for the first half of the year to be 112-12.2 billion yuan, up 58%-73% year on year; Tongling Nonferrous's net profit for the first half of the year is expected to increase 84.13%-118.87% year on year; and China Rare Color's net profit for the first half of the year is expected to increase 410.35%-493.11% year on year. The performance of leading companies in the industry generally increased sharply, boosting the market's confidence in the overall profitability of the non-ferrous sector. Huatai Securities previously pointed out that the commodity boom in the non-ferrous sector is at a high level, but valuations are at a historically low level. The sharp decline in non-ferrous leaders in the early period was actually due to reduced valuations rather than damage to EPS.

3. Oil and gas stocks continued to rise. At the close, Shandong Molong (00568) rose 15.36% to HK$6.31; Sinopec Oil Services (01033) rose 6.67% to HK$0.64; and CNPC (00857) rose 3.46% to HK$9.57.

The US-Iran conflict continues to escalate. New York crude oil and Brent crude both closed up nearly 10% last night. Trump announced the resumption of the maritime blockade against Iran, saying that the move would only intercept Iranian ships and their customers, and that other countries can still freely use the strait. At the same time, he announced that the US has since become the “guardian of the Strait of Hormuz,” demanding compensation at a rate of 20% for all goods in transit, and the relevant procedures will be initiated immediately. Iran's Revolutionary Guard Corps responded that the only way to resume normal navigation is for the US to stop military intervention in the strait. Continued intervention may cause even more serious accidents in the global oil and gas sector.

4. The CRO concept is on the rise today. At the close, Zhaoyan Pharmaceutical (06127) rose 7.66% to HK$22.2; Kanglong Chemical (03759) rose 6.31% to HK$23.6; and Pharmaceutical Kangde (02359) rose 4.29% to HK$158.1.

In the first half of this year, the domestic innovative drug BD reached a new high in the same period. Combined with a marked recovery in overseas biomedical financing, many forward-looking indicators confirm the simultaneous improvement in domestic and foreign demand. On the evening of July 13, Kanglong Chemical disclosed its semi-annual performance forecast. The company's new orders increased by more than 30% year on year; among them, new orders for laboratory services increased by more than 20% year on year, and new orders for small molecule CDMO services increased by more than 50% year on year. It is worth mentioning that due to active research and development of new drugs, the price of experimental monkeys has risen again. According to reports, the current value of crab-eating monkeys has exceeded 200,000 yuan.

Popular exotic stocks

Kefu Healthcare (01187) has risen significantly. At the close, it was up 9.47% to HK$31.68.

The Ministry of Civil Affairs and 14 other departments recently jointly announced the “Three-Year Action Plan for Expanding Capacity and Improving the Quality of the Rehabilitation Aids Industry (2026-2028)”. This “Plan” clearly proposes that by 2028, a new pattern of industrial development will gradually be formed with entity growth, carrier support, brand promotion, active market, and innovation-led. According to reports, Kefu Medical specializes in R&D, production and sales of various types of devices such as rehabilitation aids, health monitoring, respiratory support, medical care, traditional Chinese medicine physiotherapy, etc., covering the needs of all household medical care scenarios.

Zhongwei New Materials (02579) is happy. At the close, it was up 8.18% to HK$25.38.

Zhongwei New Materials expects to obtain net profit attributable to shareholders of listed companies of 1.25 billion yuan to 1.35 billion yuan in the first half year of 2026, an increase of 70.58% to 84.23% over the previous year. During the reporting period, the company seized the booming development opportunities of the global new energy industry, and relied on its leading position in the field of battery materials, the total sales volume of core products such as nickel, cobalt, phosphorus, and sodium exceeded 250,000 tons.

China's Xuyang Group (01907) performed brilliantly. At the close, it was up 6.52% to HK$1.96.

After the outbreak of the US-Iran conflict, the Strait of Hormuz was blocked/low-throughput operation for a long time. Middle East crude oil, LPG, and LNG exports were all significantly disrupted, and rising oil and gas prices pushed the cost advantage of coal chemicals once again highlighted. According to public information, China's Xuyang Coal Chemical and Coking Deep Processing business layout is perfect, and as of 2025, the company has its own chemical production capacity of 4.6 million tons.

Saijing Technology (00580) was under pressure throughout the day. At the close, it fell 6.74% to HK$1.66.

Saijing Technology announced that the company expects to record revenue of about 1,268 billion yuan in the first half of the year, an increase of about 42.7% over the previous year. This growth is mainly due to the company's centralized delivery of products for the Gansu-Zhejiang flexible DC transmission project, including DC support capacitors and their online monitoring system. Furthermore, the company is expected to record a loss of nearly 30 million yuan.