Hang Seng Index trend | Another jump of 340 points for a fourth straight rise; Meituan surges 50% after a sideways move

U.S. inflation cooled faster than expected, easing pressure on the Federal Reserve to raise interest rates. After Hong Kong stocks rose 127 points the previous day, today they continued higher. The Hang Seng Index opened up, moved higher for a time, and with some large-cap technology stocks strengthening, the market once climbed by more than 400 points. It then traded in a narrow range for the rest of the session, and still finished up 340 points on the day. The Hang Seng Index notched a fourth straight gain, up 650 points total, or 2.71%.

After opening 210 points higher, the index pulled back slightly to the day’s low of 24,449. After Mainland China announced that second-quarter GDP grew 4.7% year-on-year, sentiment quickly turned more bullish. The market’s gain widened to as much as 434 points, reaching a high of 24,774. The rise was capped by the 50-day moving average (currently at 24,815). In the first half of the session, the index gained 354 points. In the afternoon, the market continued to climb, spending most of the time trading narrowly around 24,700. The Hang Seng Index closed at 24,681 points, up 340 points, or 1.4%.

The Hang Seng China Enterprises Index rose 81 points, or 1%, to 8,184 points. The Hang Seng Tech Index rose 61 points, or 1.3%, to 4,740 points.

Total turnover across the market for the full day was HK$304.29 billion (3,042.97 billion yuan equivalent as stated), and Northbound capital net inflow was HK$13.363 billion (133.63 billion yuan equivalent as stated).

Of 93 blue-chip stocks, 68 advanced.

Internet and tech stocks generally performed well. Meituan (03690) first fell then rose 5.3%, to HK$83.4. Tencent (00700) rose 3.9%, to HK$474. Alibaba (09988) rose 2.3%, to HK$113.4. Kuaishou (01024) rose 2.1%, to HK$44.7. JD.com (09618) rose 1.7%, to HK$115.7. After being hit by a drop of more than 7% the previous day amid target-price cuts by major institutions such as UBS and Morgan Stanley, Baidu (09888) rebounded 1.4% today to HK$107.5. Xiaomi (01810) fell 0.7% to HK$25.86.

Henderson Land (00012) rose 4.7% to HK$26.9. Sun Hung Kai Properties (00016) rose 4.2% to HK$122.3. HSBC (00005) rose 1.8% to HK$155.3. AIA (01299) rose 2.8% to HK$76.2. CATL (03750) rose 2.7% to HK$622. Sands China (01928) fell 1.7% to HK$12.95. China Aluminum (02600), which had jumped nearly 10% the day before, gave back 1.7% to HK$8.09.

Focus Sectors

Biotech and pharma stocks were strong. Xinda Biotech (01801) rose 7.8% to HK$97.05, the best-performing blue-chip. Wuxi AppTec (02359) rose 4.4% to HK$165.1. Wuxi Biologics (02269) rose 3.5% to HK$39.54. CSPC Pharmaceutical Group (01093) rose 3.9% to HK$8.43.

Three mainland China companies were reported to have received U.S. approvals to purchase Nvidia and AMD chips, and chip stocks pulled back. Semiconductor Manufacturing International Corporation (00981) fell 2.6% to HK$76.3, the weakest-performing blue-chip. HUA HONG GRACE Semiconductor (01347) fell 1.3% to HK$169.3. Shanghai Fudan Microelectronics (01385) fell 1.4% to HK$28.

Featured Stocks

China Life (02628) is expected to post a profit increase of more than 2.1 times in the first half; the share price first rose then fell 2.2% to HK$28.

Zhipu (02513), an AI-related stock, rose 6.7% to HK$1,707. Zixu Technology (MiniMax) (00100) rose 13.3% to HK$260.6.

Yangtze Optical Fibre and Cable (06869) expects first-half earnings to grow by more than 7.1 times, and Morgan Stanley raised the company’s H-share rating to “Buy/Accumulate.” The stock closed up 1.6% at HK$156.4.

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