Hong Kong Stock Midday Review: Hang Seng Index rose 0.98% and returned above 26000 points; Tech Index rose 1.34%; Tech and internet stocks broadly gained; Chinese securities stocks moved higher; New consumer concept stocks were active

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March 17 News: The three major Hong Kong stock indices all rose. At midday, the Hang Seng Index increased by 0.98%, closing at 26,088.03 points. The Hang Seng Tech Index rose by 1.34%, and the Hang Seng China Enterprises Index increased by 0.93%. On the market, tech stocks generally gained, with Meituan up over 3%, Alibaba, Bilibili, and Xiaomi each up over 2%. Chinese-funded brokerage stocks also rose, with CITIC Securities up over 7%. The biotech and pharmaceutical sector led gains, with Junshi Biosciences up over 6%. New consumer concept stocks were active, with Pop Mart up over 4%.

Chinese-funded brokerage stocks rose, with CITIC Securities up over 7%. CITIC Construction Investment released a research report stating that three positive marginal changes are improving, and the performance of the securities sector in 2026 is expected to exceed expectations. Trading activity in the first half of the year has significantly increased year-on-year, with full-year growth likely to surpass expectations. The number of new accounts opened early in the year was impressive, with retail investor inflows building momentum. The scale of bond issuance financing by brokerages has expanded significantly, which may drive leverage increases and break through industry ROE highs.

The biotech and pharmaceutical sector led gains, with Junshi Biosciences up over 6%. Guosen Securities believes that since Q1 2026, the trend of domestic innovative drugs expanding overseas continues. Cooperation agreements on multiple projects based on technological platforms demonstrate that Chinese innovative drugs are increasingly recognized by multinational pharmaceutical companies. The efficiency and cost advantages of Chinese innovative drugs are being continuously reflected. Investors should pay attention to opportunities in the Contract Research Organization (CRO) industry. Based on short-term industry performance and long-term global competitiveness, we believe CRO remains the strongest investment theme in the current pharmaceutical sector.

New consumer concept stocks were active, with Pop Mart up over 4%. According to a spokesperson from the National Bureau of Statistics, since the beginning of the year, driven by consumption-promoting policies and the extended Spring Festival holiday, market sales have significantly rebounded, and the potential for service consumption has been unleashed. In the first two months, retail sales of consumer goods increased by 2.8% year-on-year, accelerating by 1.9 percentage points compared to December last year. Meanwhile, the policy of renewing old consumer goods has shown effects, with a cumulative sales increase of 323.26 billion yuan in related products in 2026, up 3.2% year-on-year, notably in automobile, home appliances, and digital smart products.