Zhitong Hong Kong Stock Exchange Unravels | The first meeting between China and the US brought new expectations, and pharmaceutical deregulation once again stimulated

[Anatomy Dashboard]

The news was warm over the weekend, and investor sentiment improved. Today, both markets strengthened, and Hong Kong stocks rose steadily, closing up 1.18%.

The biggest benefit comes from easing between China and the US. China will lead a delegation to the US to hold economic and trade negotiations with the US from September 19 to 23. The talks between the heads of state from September 23 to 25 are of great significance.

I originally thought it wasn't that fast, but the US side is probably worried, because now Trump is facing too many problems. He has an economic problem with US debt, the military is also facing war with Iran, and the Houthis are disrupting the situation. The Russian-Ukrainian conflict still requires continuous investment; nothing is worry-free. At the same time, the big power game also involves tax issues. Managing differences, reaching consensus as much as possible, and stabilizing votes is a wise move.

From a realistic perspective, reducing inflation is also a key option. For the first time in history, US diesel prices have broken through $6.50 per gallon, partly because Ukrainian drone attacks continue to impact Russian refineries. Last weekend, a Moscow refinery was attacked as part of the largest nighttime attack of the year. Russia has imposed a ban on diesel exports and is likely to extend this restriction until October. However, the blockade of the strait is also a key factor. Goldman Sachs said that as refineries currently prioritize diesel production, gasoline prices have “more room to rise.” As the midterm elections approach, diesel prices hit a new high, which may lower the approval ratings of US President Trump and his Republican Party. Breaking this impasse requires the assistance of all parties. It is hoped that this meeting will achieve some substantial results, which is good for the world economy and the stock market.

Last week, the Middle East-China VLCCTCE continued to rise sharply to 1,241,000 US dollars/day. The US Gulf and West Africa routes increased markedly at the same time. The US Bay - China rose to 40,000/day, West Africa - China rose to 527,000 US dollars/day, and COSCO (01138) management expected most of the sharp rise in freight prices in September to be reflected in fourth-quarter results. In addition, the Strait of Hormuz disrupted or lasted longer than expected, supporting the continued bullish market for tanker shipping. Today, it rose more than 6%; Pacific Shipping (02343) and COSCO Maritime Control (01919) rose nearly 4%; at the same time, it was also a big stimulus for the shipbuilding industry; China Shipbuilding Defense (00317) rose more than 4%.

This time, the US side is not like before. It used extreme pressure at every turn before the meeting, and has finally learned the right way. The US Treasury Department is drafting new rules for biotechnology investment in China. The plan being discussed may allow US pharmaceutical companies to continue to import most common therapeutic drugs from Chinese companies. There is really no need for an unprincipled industry to do anything. This was a major stimulus for the CXO class and dispelled concerns. Pharmaceuticals, Jinsirui (01548), and Zhaoyan New Pharmaceutical (06127) all increased by more than 4%.

The trend in the pharmaceutical sector is stronger. Yingpai Pharmaceutical-B (07630) announced that the European Medicines Agency (EMA) Commission for Human Medicines (CHMP) has passed a positive opinion recommending approval (MA) for Sepalna® (Senapali), which is mainly used for maintenance treatment of advanced epithelial ovarian cancer, fallopian tube cancer, and primary peritoneal cancer. After approval of the CHMP recommendation, Senapali will be submitted to the European Commission for a final decision. Once approved by the European Commission, Senapali will be approved for sale in all EU member states and European Economic Area countries. It surged nearly 28%; other imported varieties, Tianchen Bio-B (01779) and Jinhai Medical Technology (02225), all increased by more than 9%; Fuhong Hanlin (02696): The company announced that Handayuan (adalimumab) has been approved for listing in Pakistan. The trade name Adaliget has been approved for all local indications. Handayuan became the company's eighth product approved for marketing overseas, and was included in China's “National Essential Drug Catalogue (2026 Edition)” in July 2026. Today's increase is over 8%. There are also a large number of innovative drugs, all with quite impressive gains.

The direction of AI pharmaceuticals, which was popular last week, continued to strengthen, and Anthropic also joined the team to add AI pharmaceuticals. Zhitong announced in September that the company had reached a contract amount of up to tens of millions of dollars with a cutting-edge basic model laboratory. Once again, it rose more than 5%; Jingtai Holdings (02228) joined Stanford. Meanwhile, it was announced on September 21 that Chairman Wen Shuhao plans to increase the company's shares with his own funds by the end of October. The total cost will not exceed HK$32 million, and the company will not provide financial support. It rose nearly 6%; Biosetu-B (02315), as the world's leading platform to enable antibody discovery, rose nearly 12%.

The technology direction is also impressive. According to the latest research report, manufacturers such as Nvidia, AMD, Google, and Amazon entered a strong GPU and ASIC procurement phase in the third quarter, and copper-clad plates and PCBs were listed as benefiting from AI demand and price increases. Guanghe Technology (01989) and Shenghong Technology (02476) both increased by more than 13%.

Domestic substitution is also speeding up. In about 100 days, the Huawei Tao Law completed the three-level leap from theory proposal to engineering demonstration to power consumption verification. Kirin 2026's NPU power consumption dropped by 66%, GPU power consumption decreased by 58%, and CPU performance and core power consumption decreased by 41%. Domestic chips have brought opportunities. The BR106, BR110, and BR166 have already been mass-produced and delivered on a large scale. The next flagship, the BR20X, is expected to enter the verification and testing phase in the fourth quarter of 2026, surging by more than 12%.

Fubo Group (03738) officially launched the SeeBay platform. As of September 20, the total number of registered users of the platform has exceeded 20,000, and users have added more than 13,600 new work creation tasks, an increase of more than 5%.

There is a lot of news about 3D printing. Lawrence Livermore National Laboratory released an AI visual online defect inspection system for real-time 3D printing quality inspection to improve the yield of large parts; German companies incorporated 3D printed bioceramic implants into standardized medical platforms, and commercialization of medical 3D printing was promoted. Creative 3D (03388) is a global consumer 3D printing head part brand. The company, which also provides consumer-grade 3D printing, 3D scanning, and laser engraving products and services, has built a diversified creative platform covering the hardware, consumables and software ecosystem, creating a three-tier growth curve, which is up nearly 11% today.

[Section Focus]

An article in the People's Daily pointed out that real estate has entered the inventory stage, which is by no means a waning trend in the industry's development. Recently, many places, including Henan, Hainan, Chengdu in Sichuan, and Wuhan in Hubei, have successively introduced new property market policies. Among them, the Provident Fund policy is the main direction of adjustment. Analysts believe that this round of policy adjustments has covered a wide range of areas. The increase in loan amounts has directly enhanced the ability to buy homes, and the broadening of withdrawal scenarios such as decoration, property fees, and deeds has revitalized account funds. It is expected that in the future, more cities will better support housing consumption by optimizing provident fund policies. According to the data, at present, the share of second-hand housing transactions in China has increased from 27% in 2020 to 46% in 2025, reaching 52% in the first 8 months of 2026, surpassing new housing as the main force in the housing transaction market. This is the most intuitive market evidence of the transformation of the real estate development stage.

Real estate is known as gold, nine, and silver. It is a peak season. Under all kinds of normal catalysts, real estate is expected to usher in a valuation repair market. The main types of Hong Kong stocks: Sunac China (01918), Vanke Enterprise (02202), Country Garden (02007), Greentown China (03900), Poly Real Estate (00119), and China Resources Land (01109).

[Individual Stock Mining]

China Aviation Technology and Industry (02357): Egypt International Air Show Brings New Expectations and Continued Delivery of Foreign Trade Orders

Recently, the 2nd Egypt International Air Show opened at Alamein International Airport. China sent a variety of active combat equipment to participate in the exhibition. The company's revenue for the first half of 2026 was 37.812 billion yuan, +0.93% YoY; net profit to mother was 823 million yuan, -20.10% YoY. The subsidiary Hongdu Airlines had revenue of 2,742 billion yuan in the first half of the year, +79.97% year on year; net profit to mother was 12 million yuan, +171.93% year over year.

Comment: China Aviation Science and Industry is a full-chain aviation platform under the Aviation Industry Group. It holds the four major A-share listed companies of Zhongzhi, Hongdu Airlines, China Airlines Aircraft, and China Aviation Optoelectronics, and has four core track core assets: helicopters, trainers, airborne avionics, and optoelectronic connectors. This exhibition is expected to bring expectations in the direction of orders. The company continued to promote aviation business integration and successfully completed the aviation airborne business restructuring; Zhongzhi Co., Ltd. successfully absorbed 100% of Hafei and Changfei's shares and completed the integration of the helicopter industry.

In addition, large domestic aircraft are injecting new volume, and many of its companies are core suppliers. Orders for the C919 large domestic aircraft have already been broken. COMAC predicts that the international civil aviation market will be close to 6.6 trillion US dollars in the next 20 years. The C919 as the core product line will drive further breakthroughs in the domestic civil aviation market. The company is deeply involved in research on large domestic aircraft. Hongdu Airlines became the main supplier of the front and middle airframes of the C919 aircraft. The Jiangxi Commercial Aircraft Manufacturing Company, in which the company participated, is the manufacturer of the C919 aircraft fuselage section; some of China Aviation's airborne subsidiaries have become supporting suppliers for the C919 project. Self-developed AC series civil helicopters, AC352 has been proven, and AC332 forensics sprint; the eVTOL electric vertical take-off and landing aircraft AR-E800 is arranged to save space at low altitude in advance.

Foreign trade of L15 advanced trainers is a core highlight. It is delivered to many overseas countries; it also supports airborne missile and drone businesses, and revenue reached a record high in 2025. There are sufficient orders on hand, and the subsidiary China Aviation Optoelectronics has full production capacity. Some orders are scheduled to be produced until 2027, and there are sufficient military and new energy orders. Zhongzhi's military helicopters continue to be installed, and orders for civilian AC series helicopters have been steadily implemented. Hongdu Airlines L15 is full of domestic and foreign orders, and foreign trade orders continue to be delivered. With its dual layout in the military and civil aviation markets, AVIC will continue to benefit from strong demand in the aviation industry. Overseas projects continue to be implemented, and business is growing steadily.