Hong Kong stocks closed (09.03) | Hang Seng Index closed down 0.39%, non-ferrous and shipping stocks rose higher and Huang Pharmaceutical (00013) rallied more than 14% in the afternoon

The Zhitong Finance App learned that the three major indices of Hong Kong stocks opened high and went low today, and the decline in TechNet stocks widened in the afternoon, dragging down the market. At the close, the Hang Seng Index fell 0.39% or 97.9 points to 25213.31 points, with a full-day turnover of HK$19.382 billion; the Hang Seng State-owned Enterprises Index fell 0.77% to 8385.24 points; and the Hang Seng Technology Index fell 1.08% to 4468.48 points.

Zheshang International believes that the current weekly monthly level trend in the Hong Kong stock market is still in the left-hand channel of adjustment, and is facing pullback pressure to settle profits in the short term. It has a neutral and cautious attitude towards short- and medium-term trends in the Hong Kong stock market. In terms of sector allocation, I am optimistic about the relative prosperity of the industry and benefit from favorable policies, new energy, innovative drugs, AI technology, etc.

Blue-chip stock performance

China Biopharmaceuticals (01177) led the blue chip increase. At the close, it rose 6.27% to HK$5.59, with a turnover of HK$706 million. Contributed 5.24 points. The innovative GPC3 antibody drug conjugate (ADC) TQB6426, independently developed by Zhengda Tianqing, a subsidiary of China Biopharmaceutical, recently obtained a default clinical trial license from the US Food and Drug Administration (FDA) and is intended for treatment of advanced malignant tumors. At this point, TQB6426 has obtained clinical entry qualifications for the two core pharmaceutical markets in China and the US, becoming an important milestone in the company's global development of innovative drugs.

In terms of other blue-chip stocks, CSPC Group (01093) rose 4.8% to HK$9.61, contributing 5.46 points to the Hang Seng Index; China Resources Vientiane Life (01209) rose 3.59% to HK$40.44, contributing 1.45 points to the Hang Seng Index; Ctrip Group-S (09961) fell 5.41% to HK$325.2, dragging down the Hang Seng Index by 7.81 points; Chow Tai Fook (01929) fell 4.22% to HK$12.04, dragging down the Hang Seng Index by 1.6 points.

Popular sector aspects

On the market, TechNet stocks collectively closed down, with Ali falling more than 2% and Tencent falling by more than 1%. Weak employment mitigated concerns about the Federal Reserve's interest rate hike. Non-ferrous metals stocks such as gold strengthened against the market, and the oil and dry bulk markets resonated. COSCO Haineng rose more than 6%; innovative drug concepts were generally on the rise, and the agreement reached authorized cooperation with Huang Pharmaceutical and GSK on novel anti-cancer treatments surged by more than 14%; domestic housing stocks, insurance stocks, etc. flourished. On the other side, the travel concept had the highest decline. Ctrip Group fell more than 5%, and Damo lowered its revenue forecast.

Non-ferrous metals such as gold rose higher. At the close, Tongguan Gold (00340) rose 9.2% to HK$3.5; Lingbao Gold (03330) rose 5.75% to HK$22.82; and Chifeng Gold (06693) rose 5.38% to HK$42.7.

The number of ADP jobs in the US for August announced on the evening of September 2 only increased by 38,000, lower than market expectations of 47,000. Weak employment data mitigated the market's previous pessimistic expectations of the Federal Reserve's interest rate hike in September. Meanwhile, the yen strengthened sharply on Wednesday, making foreign exchange traders once again highly alert whether the Japanese authorities will interfere in the foreign exchange market again. UBS pointed out that after Russia's foreign exchange reserves were frozen, the traditional pricing relationship between gold and real interest rates has changed. Combined with the central bank's continued increase in holdings, the failure of equity and debt safe-haven, and rising US fiscal pressure, there is still room for gold to rise further.

Shipping stocks performed brilliantly. At the close, COSCO Marine Energy (01138) rose 6.49% to HK$17.55; Pacific Shipping (02343) rose 5.02% to HK$4.29.

Geographic disturbances support oil transport risk premiums. According to reports, US officials said that the US military attacked two oil tankers belonging to the Iranian government during a round of attacks on Tuesday. Meanwhile, El Niño risk accumulation increased, bauxite and iron ore shipments were high, and the peak dry bulk season was approaching, and the BDI index hit a new high since December 5, 2023. Among them, the Cape freight rate index rose to 5,642 points, also the highest since December 2023; the Panamanian ship freight rate index was reported at 2,429 points. According to Guojin Securities, due to geographical situations such as the Middle East, Q2 freight rates continued to rise. The Q2 trend is expected to continue in the second half of the year, and profits are expected to rise sharply throughout the year.

Innovative drug concepts continue to rise. At the close, Hehuang Pharmaceutical (00013) rose 14.32% to HK$21.88; China Biopharmaceutical (01177) rose 6.27% to HK$5.59; and CSPC (01093) rose 4.8% to HK$9.61.

Guojin Securities pointed out that innovative drug companies have arrived at a loss turning point, and clinical data is being concentrated throughout the year. In addition, overseas clinical trials are progressing smoothly with the BD overseas pipeline, and they are optimistic about investment opportunities in the innovative drug sector. In terms of specific layout ideas: (1) lay out the financial reporting window, and the Nuggets performance exceeds expectations; (2) follow the news of the conference and seize the major clinical data release window; (3) focus on the core track, continue to pay attention to investment opportunities in related targets such as micronucleic acid, dual antibodies, ADC, etc., and grasp the dividend market during the industry's cash out period.

Domestic housing stocks picked up today. At the close, Yuexiu Properties (00123) rose 5.15% to HK$3.165; China Jinmao (00817) rose 3.45% to HK$1.35; and China Resources Land (01109) rose 3.46% to HK$30.46.

In August, the second-hand housing market in core cities showed signs of recovery. According to statistics from Beijing Chainjia Research Institute, Shanghai Zhongyuan Real Estate, and Shenzhen Shell Research Institute, Beijing has been growing year-on-year for 6 consecutive months. Shanghai hit a record high for the same period in the past 5 years, and the actual number of contracts signed in Shenzhen increased 12% from month to month. At the policy level, on August 28, the central level concentrated on introducing a package of real estate reform policies, covering multiple dimensions such as housing sales systems, credit management, trusts, capital markets, urban renewal, and commercial real estate, to establish a complete institutional framework for the new model of real estate development.

Popular exotic stocks

Hehuang Pharmaceutical (00013) strengthened in the afternoon. At the close, it was up 14.32% to HK$21.88.

Hewang Pharmaceutical and GSK have reached an authorized cooperation on novel anti-cancer treatments. According to the terms of the agreement, Hewang Pharmaceutical will receive a down payment of US$110 million, and is expected to receive development, registration and commercialization milestone payments of up to US$1,295 million, in addition to tiered royalties based on net sales.

Xinjiang Xinxin Mining (03833) rose significantly. At the close, it was up 10.91% to HK$2.135.

Due to the drought caused by the El Niño phenomenon, the water supply to the smelter in Indonesia's largest nickel industrial park has been limited, and the park may have to cut production by as much as 40%. Its head of media relations, Dedy Kurniawan, said in a statement that if new water sources cannot be found, the industrial park may have to cut production by 30% to 40%.

Li Ning (02331) rose gently. At the close, it was up 3.16% to HK$13.24.

Extraordinary Lingyue announced that the company, through its wholly-owned subsidiary Extraordinary China Development Co., Ltd., completed a new round of shareholding increase in Li Ning through the Hong Kong Stock Exchange Open Market on September 2, and acquired a total of 17.253,500 shares. The total transaction cost was about HK$228 million, with an average price of HK$13.23 per share.

Xiyin-W (00625) hit a new low. At the close, it was down 8.7% to HK$42.

On September 2, Hang Seng Index issued an index notice stating that Xiying complies with the requirements of the Hang Seng Composite Index's rapid inclusion rules and will be included in the Hang Seng Composite Index and its classification index after the market closes on September 14, and will take effect on September 15.

Ctrip Group-S (09961) stock price is under pressure. At the close, it was down 5.41% to HK$325.2.

Morgan Stanley said that the Ctrip regulatory settlement eliminated long-term risks, and the overseas market share growth momentum was maintained, but tourism demand was slowing down due to factors such as local macroeconomic headwinds, extreme weather, and geopolitical risks. Damo lowered Ctrip's 2026-28 revenue forecast by 1 to 3%, and earnings per share by 2 to 7%.