Hong Kong stocks closed (03.14) | Hang Seng Index closed up 2.12%, baby concept stocks took off, big financial stocks and consumer stocks were strong throughout the day

The Zhitong Finance App learned that the central bank made it clear that it would take the opportunity to cut interest rates. The three major Hong Kong stock indices rose strongly. At one point, the Hang Seng Index broke through the 24,000 mark, and the Hengke Index once rose nearly 3%. At the close, the Hang Seng Index rose 2.12% or 497.33 points to 23959.98 points, with a full day turnover of HK$290.613 billion; the Hang Seng State-owned Enterprises Index rose 2.75% to 8877.99 points; and the Hang Seng Technology Index rose 2.31% to 588.0.78 points. Looking at the whole week, the Hang Seng Index fell 1.12%, the China Index fell 0.4%, and the Hengke Index fell 2.59%.

Guojun International believes that in the medium to long term, there is still room for Hong Kong stocks to continue to rise, and the logic of revaluation of Hong Kong stocks has not yet been completed. In the foreseeable future, domestic policies will continue to be supported, and overseas interest rates will drop further, all of which are beneficial to improving the profit side and valuation side of Hong Kong stocks. Furthermore, from an industrial perspective, the breakthrough of Chinese enterprises in the field of AI big models has not only launched a new round of technology capital expenditure cycles, but also expanded the existing domestic capital investment space, becoming a new place for capital investment in addition to traditional infrastructure and real estate, providing a new impetus for domestic economic growth and improving the profit prospects of Hong Kong stocks.

Blue-chip stock performance

BYD shares (01211) showed strong performance. At the close, it rose 6.93% to HK$385.8, with a turnover of HK$11.762 billion, contributing 45.52 points to the Hang Seng Index. BYD's official Weibo announced that the company will host the BYD Super e Platform Technology Launch and Han L and Tang L Pre-sale Conference at 19:00 on March 17. According to reports, this is another major upgrade in the field of pure electric technology after BYD launched the e-platform 3.0 Evo in May 2024. According to people familiar with the matter, the core highlight of the platform is the 1000V high voltage technology it supports.

In terms of other blue-chip stocks, Yao Ming Biotech (02269) rose 14.38% to HK$26.65, contributing 20.58 points to the Hang Seng Index; Mengniu Dairy (02319) rose 9.03% to HK$19.8, contributing 8.47 points to the Hang Seng Index; Changhe (00001) fell 6.38% to HK$46.25, dragging down the Hang Seng Index by 14.06 points; Changjiang Infrastructure Group (01038) fell 2.93% to HK$52.95, dragging down the Hang Seng Index by 1.65 points.

Popular sector aspects

On the market, all large technology stocks rose, Meituan and JD rose more than 5%, and Alibaba rose more than 3%. Childcare policy subsidies led to the take-off of infant concept stocks. Jinxin Fertility soared by more than 41%, and Goodbaby International surged by more than 25%; the central bank clearly stated that it took the opportunity to downgrade interest rates, and major financial stocks such as brokerage and insurance were strong throughout the day; international gold prices reached the $3,000 mark, and gold stocks performed brilliantly; large consumer stocks, pharmaceutical stocks, education stocks, and domestic housing stocks rose one after another. On the other side, pork concepts, steel stocks, electricity stocks, etc. are underperforming.

1. Baby concept stocks took off. At the close, Jinxin Reproduction (01951) rose 41.67% to HK$3.57; Goodbaby International (01086) rose 25.47% to HK$1.33; China Feihe (06186) rose 15.68% to HK$6.86; and Ausu (01717) rose 12.96% to HK$2.44.

On March 13, the Hohhot Municipal Health Commission issued local maternity allowance rules, of which the maximum allowance for a single child can reach 100,000 yuan. Citi said that the policies issued by Hohhot have exceeded expectations, and it is expected that more local governments will follow suit in the short term. Furthermore, the relevant departments in Shenzhen said today that the relevant state departments are studying the childcare subsidy scheme, and our city will actively and steadily implement it in accordance with the national deployment. Lyon said that although it is difficult to assess the final impact of the policy on fertility at this stage, he believes that higher expectations will boost investment sentiment in baby-related stocks in the short term, and it is expected that China's Feihe will benefit the most.

2. The big financial sector exploded. At the close, Xinhua Insurance (01336) rose 11.35% to HK$30.9; China Taibao (02601) rose 9.66% to HK$26.1; CICC (03908) rose 4.86% to HK$16.4; and China Merchants Bank (03968) rose 2.47% to HK$49.7.

On March 13, the Party Committee of the People's Bank of China held an expanded meeting. The conference pointed out that a moderately loose monetary policy should be implemented. According to the economic and financial situation at home and abroad and the operation of financial markets, take the opportunity to reduce interest rates, and comprehensively use various monetary policy tools such as open market operations to maintain abundant liquidity, so that the scale of social financing and the growth in money supply match the expected goals of economic growth and overall price levels. Further unblock channels for monetary policy transmission, improve interest rate formation and transmission mechanisms, and promote the reduction of comprehensive social financing costs. Strengthen communication with the market and enhance policy transparency. Adhere to the decisive role of the market in exchange rate formation, strengthen the guidance of expectations, and maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level.

3. Gold stocks performed brilliantly. At the close, China Gold International (02099) rose 8.06% to HK$53.6; Shandong Gold (01787) rose 5.46% to HK$16.6; Zhaojin Mining (01818) rose 5.34% to HK$15; and Lingbao Gold (03330) rose 5.24% to HK$5.82.

Trade tension boosted risk aversion, compounded by the Federal Reserve's bets to ease monetary policy, and the price of gold reached a record high on Thursday. Overnight, New York futures rose 1.85%, breaking the $3,000 mark for the first time, reaching a record high of $3001.3 per ounce; spot gold once hit a record high of $2,990 this morning. Macquarie Group analysts expect that by the third quarter of this year, the price of gold may rise to a record high of 3,500 US dollars per ounce. Debon Securities pointed out that in the long run, the price of gold is expected to continue to rise, driven by factors such as the expansion in the scale of the US dollar; in the short term, the continued rise in expectations of interest rate cuts by the Federal Reserve and the short-term stimulus of recent CPI and other data are expected to end the fluctuation and return to an upward trend, and opportunities for the allocation of gold and related individual stocks are expected to gradually emerge.

4. CRO concept stocks had the highest gains. At the close, Viva Biotech (01873) rose 18.88% to HK$1.7; Pharmaceutical Biotech (02269) rose 14.38% to HK$26.65; Kanglong Chemical (03759) rose 9.35% to HK$16.6; and Tiger Pharmaceuticals (03347) rose 7.14% to HK$37.5.

Huaxin Securities pointed out that in December 2024, the biosafety bill has not yet been passed by the US two courts. In 2025, Chinese CRO companies will receive some window, and after the US president is replaced, the current tax increase will mainly increase tariffs. For Chinese companies with cost advantages, the current tax increase does not affect CDMO's competitive advantage, and the probability of passing the biosafety law again has decreased significantly, and the concerns of overseas pharmaceutical companies will also decrease. In terms of domestic orders, the trend of pharmaceutical investment and financing did not improve in 2024, but the decline has basically stopped. Furthermore, it is expected that more CRO companies will actively embrace AI technology to seek to enhance competitiveness in a competitive market.

5. Domestic housing stocks rose collectively. At the close, China's Jinmao (00817) rose 12.39% to HK$1.27; Greentown China (03900) rose 9.97% to HK$12.8; Metro Development (01030) rose 8.02% to HK$2.29; and Country Garden (02007) rose 7.22% to HK$0.52.

Recently, the popularity of the property market has been heating up in many places. According to property market monitoring data released by the Linping Residential Big Data Research Institute, judging from the data on the cumulative number of units sold year-on-year, 12 cities all rose from January to February among the 14 cities monitored. Among them, the cumulative year-on-year ratio of first-tier cities was greater than that of second-tier cities. Last week, the sales volume of second-hand housing units in the 10 key cities was 20024 units, up 38.45% year on year. Looking at cumulative monthly transactions, from March 1 to 9, 2025, 21,755 second-hand residential units were sold in 10 key cities, up 26% from the same period in March 2024.

BOC International believes that the industry has a clear goal of stopping the decline and stabilizing, and that it will focus on the subsequent “Xiaoyangchun” property market performance under a low base. In February, the mainland continued its loose real estate policy orientation. At the central level, the Politburo meeting of the Central Committee once again emphasized the need to stabilize the property market and stock market. Although the impact of the traditional off-season is still not fully clear, against the backdrop of a low base, the bank expects that Xiaoyang Spring will be successful in March, and it should continue to pay attention to the differentiation between major cities and national/private enterprises.

Popular exotic stocks

1. Changhe (00001) volume declined. At the close, it was down 6.38% to HK$46.25.

Changhe previously announced that it has reached a principle agreement with a consortium led by BlackRock in the US to sell 80% of the assets of the Hutchison Ports Group to the consortium and transfer the 43 ports and supporting logistics networks it owns and operates in 23 countries, including Balboa and Cristobal ports at both ends of the Panama Canal. According to some reports, the BlackRock Foundation can be deeply embedded in key points of global trade through this acquisition, while Changhe's exit may be affected by geopolitical pressure.

2. Dived after reaching a new high in Yuejiang (02432). At the close, it was down 6.35% to HK$58.3.

Yuejiang Technology previously released the world's first “dexterous operation+straight knee walking” intelligent humanoid robot, which can perform the above actions as smoothly as a human. The accuracy of operation with both arms reached 0.05 mm, making it the “most human-like” humanoid robot with two-arm maneuverability and straight-knee walking gait. According to Yuejiang, the new product has now carried out scenario cooperation with domestic first-tier car manufacturers, electronics manufacturers, coffee and milk tea stores, and will achieve trial production and batch production by the middle of this year.

3. Bruco (00325) showed a significant increase. At the close, it was up 11.83% to HK$126.7.

According to a recent research report by Northeast Securities, Bruker products are positioned as children's toys, with core IPs such as Ultraman and Transformers, etc., and their style is suitable for underage groups, especially boys in elementary school. Although there is a big difference in product style and crowd positioning between the two, they have achieved rapid development of their own using the blind box format, so Bruke can be compared to a children's version of “Bubble Mart.”

4. New Oriental-S (09901) rallied in the afternoon. At the close, it was up 8.07% to HK$39.5.

CITIC Securities previously pointed out that although it will take 6-7 years for the birth population to be transmitted to K12 trainers, the fluctuation in the birth population, which began in 2018, is expected to affect the general market of trainers year by year (but only affects entry grades, with limited short-term impact). Therefore, if the policy has a significant effect on boosting fertility, it is expected to gradually reverse the expectations of the K12 trainers market and drive an upward trend in long-term valuations.