Hong Kong stocks closed (05.09) | The Hang Seng Index closed up 0.4%, and cryptocurrency ETFs collectively fell after high performance

The Zhitong Finance App learned that the three major indices of Hong Kong stocks had mixed trends. The Hang Seng Index and China Index fell slightly higher in early trading, then the trend repeated; the Hengke Index performed the worst, falling more than 2% during the intraday period. At the close, the Hang Seng Index rose 0.4% or 91.82 points to 22867.74 points, with a full-day turnover of HK$161,629 billion; the Hang Seng State-owned Enterprises Index rose 0.1% to 8308.83 points; and the Hang Seng Technology Index fell 0.93% to 5180.25 points. Looking at the whole week, the Hang Seng Index rose 1.61%, the China Index rose 0.95%, and the Hengke Index fell 1.22%.

Guotai Junan International pointed out that looking ahead, after recovering the decline, Hong Kong stocks may maintain sideways consolidation for the short term. The international trade negotiation process may be tortuous, and there is great uncertainty. In terms of allocation strategies, the bank suggests using a dividend style as a base position in the short term and wait patiently to see the situation become clear. As the situation gradually becomes clear, the direction of increasing the allocation of domestic policy support is the key to excessive investment returns.

Blue-chip stock performance

Henderson Land (00012) led the blue chip increase. At the close, it rose 6.18% to HK$24.05, with a turnover of HK$411 million, contributing 3.38 points to the Hang Seng Index. Bank of America Securities pointed out that Henderson Land's dividend rate of 7.9% is attractive compared to the average of 5.4% for Hong Kong developers. If the one-month Hong Kong Interbank Interest Rate (HIBOR) remains at 2% for a long time, investment demand in the property market is expected to pick up. Moreover, Hengdi products are mainly aimed at investors, that is, small unit areas and urban locations. Furthermore, Henderson Land, along with a 42% net debt ratio for shareholder loans, will benefit even more from lower floating interest rates.

In terms of other blue-chip stocks, Sun Hung Kai Properties (00016) rose 5.05% to HK$80.15, contributing 9.19 points to the Hang Seng Index; Geely Auto (00175) rose 4.79% to HK$18.36, contributing 8.41 points to the Hang Seng Index; SMIC (00981) fell 4.76% to HK$43, dragging down the Hang Seng Index by 15.94 points; and Wanzhou International (00288) fell 4.73% to HK$6.85, dragging down the Hang Seng Index by 4.74 points.

Popular sector aspects

On the market, large technology stocks generally weakened. Tencent fell 0.68%, and Alibaba bucked the trend and rose 1.73%. Bitcoin returned to $100,000 after a lapse of 3 months, and cryptocurrency ETFs and related concept stocks rose; some consumer stocks showed impressive performance, with Mingchuang Premium up more than 7% and Bubble Mart up more than 6%; reports say the US is considering drastically lowering tariffs on China to 50%, and the trend of tariff-sensitive stocks is strong; domestic bank stocks, oil stocks, and coal stocks have risen. On the other side, semiconductor stocks had the highest decline, and SMIC Huahong's performance fell after that; domestic housing stocks, Apple concept stocks, and gold stocks generally declined.

1. Cryptocurrency ETFs and related concept stocks were higher. At the close, Huaxia Ether (03046) rose 23.26% to HK$5.68; Bosch Ether (03009) rose 22.9% to HK$1.814; Xiongan Technology (01647) rose 2.56% to HK$0.08; and Liberal Arts Interactive (00434) rose 1.4% to HK$5.07.

Thanks to the US-UK trade agreement, investors' concerns about the global trade situation have abated, and Bitcoin has broken the $100,000 mark for the first time since February. As of press release, Bitcoin was reported at $10,3712.4 per ounce, up 4.05% during the day. Geoffrey Kendrick, head of digital assets at Standard Chartered Bank, had predicted that Bitcoin would reach $120,000 in the second quarter, but now he says his forecast is “too low.” The analyst shared a half-joking review with clients via email on Thursday, saying, “I'm sorry, my goal of $120,000 for the second quarter is probably too low.”

2. Some consumer stocks performed brilliantly. At the close, Mingchuang Premium (09896) rose 7.02% to HK$37.35; Bubble Mart (09992) rose 6.76% to HK$191.1; Shangmei shares (02145) rose 5.92% to HK$68.85; and Chabaidao (02555) rose 2.43% to HK$9.71.

Recently, Minister of Commerce Wang Wentao published a signed article “Vigorously Boosting Consumption and Expanding Domestic Demand to Promote Continued Economic Recovery”. The article points out that cultivating new types of consumption, expanding service consumption, and focusing on exploring consumption growth. The League of Nations Minsheng Securities said it continues to be optimistic about investment opportunities for new consumer products throughout the year. The bank pointed out that looking ahead to the full year of 2025, the comparative advantage of domestic demand will become even more prominent under the risk that the US Trump administration will continue to impose tariffs. The leading companies that continue to be optimistic about their products and have the most prominent brand potential: Oldstore Gold, Giant Biotech, and Mao Ge, etc.

3. Most domestic bank stocks rose. At the close, Chongqing Rural Commercial Bank (03618) rose 4% to HK$6.24; Bank of Chongqing (01963) rose 2.83% to HK$7.64; Agricultural Bank (01288) rose 2.11% to HK$4.85; and China Merchants Bank (03968) rose 1.77% to HK$46.

On May 7, the People's Bank of China announced the launch of a package of financial policy measures, including reducing the reserve ratio by 0.5 percentage points, lowering the policy interest rate by 0.1 percentage points, and lowering the policy interest rate by 0.1 percentage points. China Post Securities believes that the significance of this policy signal is obvious. It reflects the relevant requirements of “stabilizing employment, stabilizing enterprises, stabilizing markets, and stabilizing expectations” at the April Politburo meeting of the CPC Central Committee. It is expected to improve the expectations of enterprises and residents, and that the quality of bank assets may improve.

Furthermore, on May 8, China Merchants Bank and China CITIC Bank separately announced that they intend to wholly-owned launch the establishment of a financial asset investment company (AIC for short). Earlier, Industrial Bank was approved to establish Societe Generale Financial Asset Investment Co., Ltd. Guoxin Securities believes that increasing policy support for financial asset investment companies' direct equity investment business and expanding the establishment of financial asset investment companies to eligible national commercial banks is expected to help commercial banks serve science and innovation enterprises more efficiently and write big “technology finance” articles.

4. Semiconductor stocks had the highest declines. At the close, Huahong Semiconductor (01347) fell 7.94% to HK$32.45; SMIC (00981) fell 4.76% to HK$43; Shanghai Fudan (01385) fell 4.7% to HK$25.35; and Hongguang Semiconductor (06908) fell 3.92% to HK$0.49.

On the evening of May 8, two major domestic foundry giants, SMIC and Huahong, successively disclosed their 2025 quarterly reports. Specifically, SMIC achieved revenue of 16.301 billion yuan in the first quarter, up 29.4% year on year, and realized net profit to mother of 1,356 billion yuan, an increase of 166.5% year on year. SMIC said that in the second quarter, the company's revenue is expected to drop 4% to 6% month-on-month, and gross margin is expected to be 18% to 20%. In addition, Huahong's first quarter sales revenue was US$540.9 million, up 17.6% year on year, up 0.3% month on month; net profit was US$3.75 million, down 88.2% year on year.

Some market participants are concerned that in the quarterly reports of SMIC and Huahong, the shareholding ratio of Xinxin (Hong Kong) Investment Co., Ltd. (“Xinxin Hong Kong” for short), a wholly-owned subsidiary of China Integrated Circuit Industry Investment Fund Co., Ltd., an important shareholder, changed. According to information, Xinxin Hong Kong holds H shares in both companies, and its reduction of holdings did not involve the A-shares of the two companies. Recently, none of the shareholders of either SMIC or Huahong issued an announcement to reduce their A-share holdings.

5. Domestic housing stocks generally fell today. At the close, Rongxin China (03301) fell 4.17% to HK$0.23; Greentown China (03900) fell 3.42% to HK$9.33; Agile Group (03383) fell 3.26% to HK$0.445; and Xincheng Development (01030) fell 3.13% to HK$1.86.

Guoxin Securities pointed out that during the May Day holiday, according to Kerry statistics, the performance of the property market was slightly lackluster, and the subscription area of 19 key cities dropped slightly by 4% over the same period last year. At the level of the top 100 housing enterprises, according to statistics from the China Index, the sales volume of TOP100 housing enterprises fell 16.9% year-on-year in April, up from the monthly decline in March. The bank pointed out that after experiencing a pulse-recovery in demand in the first quarter, demand for home purchases surged and fell in the short term, compounded by a slowdown in housing companies' push, and the recovery in real estate sales was weak. In the context of the Politburo meeting setting the tone for “continuing to consolidate the stable trend in the real estate market,” the decline in sales will further accelerate the pace of policy easing.

Popular exotic stocks

1. The volume of Andeley juice (02218) has increased dramatically. At the close, it was up 23.96% to HK$17.8.

The volume of Andeley's juice soared today; at one point, it rose more than 70% in early trading. The price rose to a record high of HK$24.5. Notably, the stock surged more than 52% on May 6, and doubled its share price this week. The company achieved operating income of 430 million yuan (RMB, same below) in the first quarter, an increase of 58.98% over the previous year; net profit to mother was 860.682 million yuan, an increase of 61.31% over the previous year.

2. Unification Enterprise China (00220) strengthened throughout the day. At the close, it was up 9.58% to HK$9.84.

Unification Enterprise China announced that for the first quarter ended March 31, unaudited profit after tax was RMB 602 million, an increase of 31.8% over the previous year. Daiwa released a research report stating that it reaffirmed its “buy” rating for the unified enterprise China. Due to its rapid growth in market share and strong new product performance, the target price was raised from HK$9.7 to HK$10.

3. SF Express in the same city (09699) rose significantly. At the close, it was up 7.98% to HK$8.66.

According to data from the third party distribution platform SF Express Tongcheng, during the “May 1st” period, its full-scenario business order volume increased 87% year over year. Among them, supermarket department store orders surged 177% year on year, drink orders increased 106% year on year, pharmaceutical, digital, beauty, mother and child categories increased by double digits year on year, and “last mile” delivery orders increased 102% year over year.

4. Geely Auto (00175) continued its gains. At the close, it was up 4.79% to HK$18.36.

Geely Auto announced a few days ago that it plans to acquire all of the shares already issued by Geely Krypton. Geely currently holds about 65.7% of Geely Krypton's shares. If the transaction is completed, Geely will fully merge with Geely. Extreme Krypton will be delisted from the NYSE and privatized. BOC International is optimistic about Geely's sales performance after consolidation, maintaining a “buy” rating and target price of HK$22.5.

5. Shandong Molong (00568) AH shares fell sharply. At the close, it fell 18.53% to HK$2.77.

Shandong Molong announced that shareholder Zhimeng Holdings and its co-actors reduced their holdings of the company's H shares by a total of 107 million shares through centralized bidding from May 7 to May 8, accounting for 13.3866% of the company's total share capital. After this reduction in holdings was completed, Zhimeng Holdings and its co-actors held a total of 44.81 million shares of the company, accounting for 5.6164% of the company's total share capital.