《Economic Daily News, 7th exclusive》Geopolitical tensions in the Middle East remain unresolved, pushing oil prices and U.S. bond yields higher overnight. Additionally, according to the UK's Financial Times, Federal Reserve Chair Wach said that if inflation data in the coming weeks remain hot or market expectations for rate hikes intensify, he would be prepared to raise interest rates, causing U.S. stocks to weaken on Thursday. With markets awaiting the release of U.S. non-farm payroll data, the Hang Seng Index opened slightly lower and fluctuated during the day. Later, as mainland Chinese stocks extended gains and Hong Kong's innovative drug stocks surged, the index reversed course upward. However, resistance emerged at the 250-day moving average (around 25,732). The Hang Seng Index closed the day at 25,668, up 137 points or 0.5%. The Hang Seng China Enterprises Index closed at 8,531, up 32 points or 0.4%. The Hang Seng Tech Index closed at 4,858, up 37 points or 0.8%. Board turnover reached nearly HK$259.7 billion. Northbound funds continued a narrow outflow for the third consecutive day, with a net outflow of about HK$800 million today.
Looking at the week as a whole, global stock markets rallied earlier in the week on optimism surrounding U.S.-Iran negotiations, with the Dow Jones Industrial Average hitting record highs for several consecutive days. On Monday (3rd), driven by tech and internet stocks, Hong Kong's index briefly surged past the 26,000 level, marking a new 2.5-month high and wiping out numerous bearish warrants. However, selling pressure at the 26,000 level remained heavy, and the index lost that level the following day. On Thursday (6th), news that mainland China would tax returns from cross-border insurance policies hit Hong Kong's financial and property sectors, coupled with profit-taking in tech and internet stocks, causing the index to plunge 385 points, breaking below the 250-day moving average. As of today, it has yet to fully recover. Overall, the Hang Seng Index fell 216 points or 0.84% for the week, interrupting its five-week winning streak.
Zai Lab (09688) reported a second-quarter net loss of $50.825 million for the period ended June 30, wider than a $40.72 million loss in the same period last year. However, total revenue of $106.3 million represented an 11% sequential increase, far exceeding market expectations of $2.5 million, driven by stable performance of Zejula and continued sales growth of Efgartigimod. Zai Lab's shift toward independent R&D fueled a 18.38% surge in its share price post-earnings, closing at HK$17.20. Other biotech stocks also rallied: WuXi Biologics (02269) surged 10.83%, leading blue-chip gains, closing at HK$45.86, extending its winning streak to six consecutive days with a cumulative gain of 21.32%; WuXi AppTec (02359) rose 7.01% to HK$192.30; BeiGene (06160) gained 5.26% to HK$210; Hansoh Pharmaceutical (03692) advanced 3.91% to HK$32.92; China Biopharmaceutical (01177) climbed 3.35% to HK$5.095; and CSPC Pharmaceutical Group (01093) rose 2.24% to HK$8.69.
AI hardware stocks are set for a wave of earnings announcements next week. Lenovo Group (00992) rose 8.33% to HK$28.10, SMIC (00981) gained 2.37% to HK$66.90, Kingboard Chemical Holdings (01888) surged 9.91% to HK$38.36, Yangtze Optical Fibre and Cable (06869) rose 5.8% to HK$124.10. Meanwhile, SHENGYING Technology (02476), which announced results today, closed up 10.91% at HK$256.20.
Sino Land (01997) significantly raised its dividend payout ratio to 90%, drawing widespread analyst upgrades, and its share price rose another 6.93% for the day, closing at HK$32.08.
The Insurance Authority stated that taxation on overseas investment returns has long existed and should not be overinterpreted. AIA Group (01299) rebounded 1.37% to HK$74.15, HSBC (00005) rose 0.69% to HK$161.20, while Standard Chartered (02888) dipped 0.94% to HK$232.20.
WH Group (00288) led blue-chip losses, falling 3.1% to HK$7.965, while Mengniu Dairy (02319) declined 2.41% to HK$18.61.
Tech and internet stocks performed weakly: Alibaba (09988) fell 0.48% to HK$123.80, Tencent (00700) dipped 0.08% to HK$478.80, Baidu (09888) dropped 0.28% to HK$106.80, Meituan (03690) was flat at HK$92.20, while Xiaomi (01810) edged up 0.74% to HK$27.06.
The UK's Financial Times, citing sources, reported that ByteDance is currently training an AI model capable of rivaling Anthropic's large model Mythos. The model reportedly has up to 10 trillion parameters, three times larger than Moonshot AI's Kimi K3, currently China's largest model. Zhipu AI (02513) surged 14.63% to HK$1,246, while MiniMax (00100), on its second day of inclusion in互联互通, rose another 9.83% to HK$326.40.
The top three most actively traded stocks on the Hang Seng Index and China Enterprises Index were Tencent, Alibaba, and SMIC; the top three on the Hang Seng Tech Index were MiniMax, Zhipu AI, and Tencent. (ey)
Looking at the week as a whole, global stock markets rallied earlier in the week on optimism surrounding U.S.-Iran negotiations, with the Dow Jones Industrial Average hitting record highs for several consecutive days. On Monday (3rd), driven by tech and internet stocks, Hong Kong's index briefly surged past the 26,000 level, marking a new 2.5-month high and wiping out numerous bearish warrants. However, selling pressure at the 26,000 level remained heavy, and the index lost that level the following day. On Thursday (6th), news that mainland China would tax returns from cross-border insurance policies hit Hong Kong's financial and property sectors, coupled with profit-taking in tech and internet stocks, causing the index to plunge 385 points, breaking below the 250-day moving average. As of today, it has yet to fully recover. Overall, the Hang Seng Index fell 216 points or 0.84% for the week, interrupting its five-week winning streak.
Zai Lab (09688) reported a second-quarter net loss of $50.825 million for the period ended June 30, wider than a $40.72 million loss in the same period last year. However, total revenue of $106.3 million represented an 11% sequential increase, far exceeding market expectations of $2.5 million, driven by stable performance of Zejula and continued sales growth of Efgartigimod. Zai Lab's shift toward independent R&D fueled a 18.38% surge in its share price post-earnings, closing at HK$17.20. Other biotech stocks also rallied: WuXi Biologics (02269) surged 10.83%, leading blue-chip gains, closing at HK$45.86, extending its winning streak to six consecutive days with a cumulative gain of 21.32%; WuXi AppTec (02359) rose 7.01% to HK$192.30; BeiGene (06160) gained 5.26% to HK$210; Hansoh Pharmaceutical (03692) advanced 3.91% to HK$32.92; China Biopharmaceutical (01177) climbed 3.35% to HK$5.095; and CSPC Pharmaceutical Group (01093) rose 2.24% to HK$8.69.
AI hardware stocks are set for a wave of earnings announcements next week. Lenovo Group (00992) rose 8.33% to HK$28.10, SMIC (00981) gained 2.37% to HK$66.90, Kingboard Chemical Holdings (01888) surged 9.91% to HK$38.36, Yangtze Optical Fibre and Cable (06869) rose 5.8% to HK$124.10. Meanwhile, SHENGYING Technology (02476), which announced results today, closed up 10.91% at HK$256.20.
Sino Land (01997) significantly raised its dividend payout ratio to 90%, drawing widespread analyst upgrades, and its share price rose another 6.93% for the day, closing at HK$32.08.
The Insurance Authority stated that taxation on overseas investment returns has long existed and should not be overinterpreted. AIA Group (01299) rebounded 1.37% to HK$74.15, HSBC (00005) rose 0.69% to HK$161.20, while Standard Chartered (02888) dipped 0.94% to HK$232.20.
WH Group (00288) led blue-chip losses, falling 3.1% to HK$7.965, while Mengniu Dairy (02319) declined 2.41% to HK$18.61.
Tech and internet stocks performed weakly: Alibaba (09988) fell 0.48% to HK$123.80, Tencent (00700) dipped 0.08% to HK$478.80, Baidu (09888) dropped 0.28% to HK$106.80, Meituan (03690) was flat at HK$92.20, while Xiaomi (01810) edged up 0.74% to HK$27.06.
The UK's Financial Times, citing sources, reported that ByteDance is currently training an AI model capable of rivaling Anthropic's large model Mythos. The model reportedly has up to 10 trillion parameters, three times larger than Moonshot AI's Kimi K3, currently China's largest model. Zhipu AI (02513) surged 14.63% to HK$1,246, while MiniMax (00100), on its second day of inclusion in互联互通, rose another 9.83% to HK$326.40.
The top three most actively traded stocks on the Hang Seng Index and China Enterprises Index were Tencent, Alibaba, and SMIC; the top three on the Hang Seng Tech Index were MiniMax, Zhipu AI, and Tencent. (ey)