Zhitong Hong Kong Stock Exchange Unravels | Magic Removes All Kinds of Stimulus, and Token Concept Stocks Are Fiercely Trending

[Anatomy Dashboard]

The performance of Hong Kong stocks over this period has been remarkable. It has been rising continuously for three weeks. One important factor is that incremental capital has arrived: the US side has confirmed to the Chinese side that the state of emergency relating to Hong Kong in Executive Order No. 13936 will not continue after it expires this year, and the executive order will end. This means that the investment of US institutions in Hong Kong stocks has been loosened, and an early amount of capital has been released to enter the market first. Today, it jumped 2.36% again.

The World Cup spell that has plagued the stock market for more than a month has come to an end. Spain defeated Argentina 1-0 in overtime to win the second World Cup title in team history; FIFA (FIFA) made money and will bring in more than 9 billion US dollars in 2026. The economy is not good. Instead, many people watch this kind of top tournament because their emotions need to be vented. FIFA President Infantino, who has tasted the sweetness of expansion, has begun to put forward the idea of further expanding the scale of the tournament to 64 teams by 2030. Is this trying to get us into spending? Another big winner was Adidas, which accurately “crushed” the first runner-up. The shareholders behind it were really powerful.

The World Cup is over, and it's impossible to say that the disgraced stock market doesn't rise any more. It is time to act. China Reform Holdings and China Chengtong Holdings, the relevant investment platforms of the two major national teams, announced on Sunday that they have increased their holdings of Chinese stocks to stabilize the domestic capital market, and promised to continue to increase their shareholding ratio in central enterprises and other companies. There is no doubt that this kind of capital will be boosted by individual index stocks. Hong Kong stocks such as Tencent (00700), Ali (09988), and Meituan (03690) have risen more than 3% today;

On the same day, China Ping An (02318), China Taibao (02601), and Xinhua Insurance (01336), issued announcements on “Firmly Supporting the Development of the Capital Market and Enhancing Shareholder Returns/Positive Returns to Investors”, sending a positive signal to the market. Taiping, China (00966): Earnings forecast for the first half of the year. Net profit attributable to shareholders for the first half of the year increased by about 85%-95% year-on-year. Today's increase was over 8%; Xinhua Insurance (01336) and China Taibao (02601) all rose more than 4%.

However, the direction of the Middle East was not peaceful. On the evening of July 19, local time, US President Trump told the media after arriving at the Andrews Joint Base on “Air Force 1” that the US military was “violently bombing” Iran in order to avenge the deaths of three US military personnel in countries in the Middle East region. In the early morning of the 20th local time, the Islamic Revolutionary Guard Corps of Iran said in an announcement that Iran had accurately attacked and destroyed 20 US military hideouts in Jordan's Azraq region and killed dozens of US military personnel. Looks like this, both sides have already upgraded. Oil and WTI crude oil rose more than 3% this morning. Among them, the price of crude oil hit 91 US dollars per barrel, the first time since June 11. Today's rise is as good as an alternative energy source - coal.

Last Friday's sector focus mentioned that the Hormuz Strait geopolitical conflict continues to disrupt coal transportation and coal prices, and it is difficult for Indonesia's production increase to be converted into increased exports to China. On July 20, China Coal Energy and China Shenhua announced dividends to increase their holdings. Among them, China Coal Energy announced that the controlling shareholder plans to increase the company's shares by 50 million yuan to 100 million yuan. China Shenhua announced that it will maintain the frequency of cash dividends and continue to carry out mid-term dividends. Among the individual stocks mentioned, Coal Energy (01898) and Yankuang Energy (01171) rose more than 8%.

Coal and electricity are generally linked. Currently, it is in a new high temperature peak phase from July 18 to 23. The Central Meteorological Observatory continues to issue high temperature warnings. At the 2026 World Artificial Intelligence Conference, the head of the National Energy Administration revealed that China will speed up the construction of a new energy system to enable AI development. Datang Power Generation (00991), Longyuan Electric Power (00916), China Electric Power (02380), and Huaneng International (00902) all increased by more than 4%.

The AI hardware weather vane continues to look at South Korea. Although South Korea's regulators took steps to rectify the individual stock leveraged ETF chaos last week, the South Korean stock market made up for the decline today, and Korean stocks once again fell to a standstill. As a result, individual hardware stocks in the two places weakened again today. The market can only tap into the application side. Kimi K3 was launched last week, topping the global code list. The gap between the major models between China and the US continues to narrow, and the official version of DeepSeek V4 is also expected to be launched as soon as possible, directly catalyzing demand for tokens.

Hong Kong Stock China Software International (00354) officially announced today that it has officially signed a token sharing and joint innovation cooperation agreement with Dark Side of the Moon for the “Moon Landing Program”. Specifically, it is the AllMeta platform, an enterprise intelligence operating system independently developed by Chinasoft International, with the Dark Side of the Moon K2.7 Code and K3 models and subsequent iterations as the core technology base to jointly promote innovation and large-scale commercialization of enterprise-level intelligent technology, products, and solutions in the energy, electricity, finance and other industries. The simple understanding is “model+computing power” to achieve the purpose of token sharing. Today it surged nearly 23%.

Another Xunce Technology (03317): On July 19, it was announced that it had formally signed a memorandum of strategic cooperation with Qingdao Xinchen Kechuang Industrial Co., Ltd., the parent company of Hongtai Fund. This is the first time that the company's TokenOS operating system has entered the private equity investment field on a systematic and large-scale basis, accelerating the implementation of the Token business scenario. It has also opened up a new way to make money. Today, it surged by more than 18%. China and the US have sent a signal of relaxation. Ministry of Foreign Affairs: China and the US will maintain communication on the interactive arrangements between the heads of state during the year, and the foreign ministers of China and the US may meet in Manila.

Innovative drug sentiment improved. The Hong Kong Stock Connect Innovative Drug ETF Huabao (520880) rose by 3.94%. Rongchang Biotech (09995) announced last night that it would buy back A shares through centralized bidding transactions with a total amount of not less than 25 million yuan, no more than 50 million yuan of its own funds and/or self-raised funds. The repurchased shares are intended to be used for employee stock ownership plans or equity incentives. Today, it has risen nearly 10%. Among other index constituents, Yingen Biotech (09606) rose 12%, while Conoa-B (02162) and Junshi Biotech (01877) rose more than 7%.

According to the latest data released by the China Construction Machinery Industry Association, the construction machinery industry continued to be booming. Sales of excavators and loaders both achieved higher than expected growth in June, and domestic and foreign demand resonance supported the industry's continued recovery. Since the beginning of the year, leading companies such as Sany Heavy Industries (06031), Xugong Machinery (000425.SZ), and Zhonglian Heavy Industries (000157.SZ) have successively issued product price adjustment notices. Sany Heavy Industries (06031) rose more than 9%, and Daiichi Tractor Co., Ltd. (00038), which has good export momentum, rose more than 7%.

According to the Securities Regulatory Commission website, on the morning of July 20, Wu Qing, Party Secretary and Chairman of the Securities Regulatory Commission, visited the Securities Sales Department in Beijing to conduct research and host an investor symposium. He had face-to-face discussions with 8 representatives of various types of investors, including large, medium, and diversified investors, to listen to opinions and suggestions on promoting the stable and healthy development of the capital market. We will see later what specific measures have been introduced.

[Section Focus]

At the Jeju Forum in South Korea on July 20, Choi Tae-won made a public statement: AI is driving storage demand to grow by 50%-100% every year, and the global storage supply and demand gap will expand further in 2027; global manufacturers will hardly expand new storage capacity next year, and high-end HBM production capacity has been scarce for a long time, correcting the fear logic of “27 years of overcapacity” in the previous market, and capital collectively returned to the storage circuit.

On July 20, the US stock storage sector fluctuated higher. Micron Technology rose 4.07% before the market, Western Digital rose 2.47% before the market, Seagate Technology rose 2.46% before the market, SanDisk rose 4.32% before the market, and SK Hynix rose 5.36% before the market.

It is expected to stimulate products related to Hong Kong stocks: GigaYi Innovation (03986), Lanqi Technology (06809), Huahong Semiconductor (01347), and SMIC (00981).

[Individual Stock Mining]

Kingdee International (00268): AI operating system Lingji catalyzes rapid growth in overseas revenue

At the WAIC World Artificial Intelligence Conference on July 19, Kingdee International focused on showcasing the “smart base” of the enterprise AI operating system and proposed the digital employee concept of “people set goals, AI implemented”. Huazhu Group recently signed a strategic cooperation agreement with Kingdee to jointly build an AI smart financial solution for the hotel industry and verify the ability of major customers to expand. The company expects revenue growth of 13% to 14% year-on-year in the first half of the year, and net profit attributable to shareholders of about 40 million to 60 million yuan, turning a loss into a profit.

Comment: Kingdee International's profitability continues to increase, mainly driven by rapid growth in subscription revenue and strong demand for AI native products. Accelerated implementation of AI product systems. The company is the only domestic manufacturer selected for the Gartner Cloud ERP Magic Quadrant. AI code assistance and operating agents are fully covered. AI generated code accounts for 70% of R&D in 2026; full-stack Xinchuang is suitable for Kirin, Tongxin, Dameng, and Kunpeng. Subscription SaaS has completely transformed. The company is the only leading ERP vendor in the industry that has completed full subscription, and users still have a large number of traditional licenses; in 2025, cloud service revenue accounted for 81.6% of total revenue, subscription revenue growth rate of 20% +; ARR (annual recurring revenue) of 4.09 billion yuan (2025).

The business volume of large enterprises is rapid, with Cangqiang+Xinghan's revenue of 1.94 billion yuan in 2025, +28%; of these, subscription revenue is 528 million, +35.4% year over year; high-end group customers have high unit prices and long renewal cycles to hedge competitive pressure in the mid-market. The entire AI native product line has exploded, and the enterprise AI operating system Reiki has been launched, an intelligent entity for all financial, production, supply chain, and human resources scenarios; AI automatically generates certificates, production schedules, risk warning, and management analysis, and customer willingness to pay has increased significantly.

Globalization is the second growth curve for overseas markets. Demand for digitalization is strong in Southeast Asia, Hong Kong and Macau manufacturing industries, and overseas subscription revenue has been growing at a rate of 30% + for many years. There are sufficient on-hand orders, and the Starry Sky stock market is stable at an annual rate of 1.5 billion+ subscription revenue, with a growth rate of 19%. The large group Cangqiu/Xinghan grew rapidly, with a subscription growth rate of 35% +, and the amount of large orders for high-end customers ranged from one million to ten million. AI value-added packages have been added, and the target revenue for the full year 2026 is 1 billion yuan, mostly additional purchases for old customers.

Recently, Xiaomo increased its holdings of Kingdee International by about 13.9413 million shares, at a price of about HK$7.04 per share, involving about HK$98.2 million. After the increase in holdings, the shareholding ratio rose to 7.1%. The company's cloud subscription revenue maintained a steady growth rate of around 20%, overseas revenue grew rapidly, and profit margins continued to rise. The profit scale is expected to double compared to 2025. The increase in Xiaomao's holdings of nearly 100 million Hong Kong dollars boosts market confidence.