Hong Kong stocks closed (05.27) | Hang Seng Index closed up 0.43% in pharmaceuticals and new consumption, showing impressive performance, Jihong Shares (02603) surged 39% in the first listing

The Zhitong Finance App learned that Hong Kong stocks weakened repeatedly in early trading. At one point, the Hang Seng Technology Index fell more than 1%; the three major indices gradually rebounded and turned higher in the afternoon. At the close, the Hang Seng Index rose 0.43% or 99.66 points to 23381.99 points, with a full-day turnover of HK$203.268 billion; the Hang Seng State-owned Enterprises Index rose 0.38% to 8469.97 points; and the Hang Seng Technology Index rose 0.48% to 5182.6 points.

Guotai Junan International pointed out that looking ahead, the Hong Kong stock market sentiment and valuation level have been repaired, and new upward momentum for Hong Kong stocks is still being nurtured. In a situation where there is great uncertainty about the international situation, investors are advised to use 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

Meituan-W (03690) rose moderately. At the close, it rose 2.09% to HK$132.1, with a turnover of HK$11.894 billion, contributing 24.28 points to the Hang Seng Index. Meituan announced first-quarter results, with revenue of 86.557 billion yuan, up 18.1% year on year; profit attributable to equity holders was 10.057 billion yuan, up 87.33% year on year; non-international financial reporting accounting standards adjusted EBITDA of 12.302 billion yuan, an increase of 52.4% year on year.

In terms of other blue-chip stocks, CSPC Group (01093) rose 5.83% to HK$6.9, contributing 5.16 points; China Biopharmaceuticals (01177) rose 4.68% to HK$4.25, contributing 3.27 points to the Hang Seng Index; Zhongsheng Holdings (00881) fell 3.63% to HK$11.68, dragging down 0.51 points; Zijin Mining (02899) fell 3.15% to HK$17.86, dragging down the Hang Seng Index by 5.71 points.

Popular sector aspects

On the market, large technology stocks are generally flourishing. After Meituan's performance, it rose more than 2%, and Alibaba rose nearly 1%. The 2025 ASCO conference is about to be held, and most pharmaceutical stocks are strong today; the stock prices of Bubble Mart, Guming, and Michelle Group have all reached new highs; the oil price exchange rate trend is friendly, and aviation stocks have continued their recent gains; beer stocks, education stocks, and film and television stocks are improving. On the other side, some gold stocks declined, and Chifeng Gold fell nearly 5%; car companies announced price reduction promotions one after another, and automobile stocks were once again under pressure; trends in nuclear power stocks, photovoltaic stocks, and semiconductor stocks were sluggish.

1. Pharmaceutical stocks have mostly strengthened. At the close, Viva Biotech (01873) rose 12.73% to HK$1.86; Junshi Biotech (01877) rose 12.61% to HK$17.86; Gacos-B (01167) rose 11.62% to HK$4.9; and Yiming Enko-B (01541) rose 7.07% to HK$10.6.

From May 30 to June 3, the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting will be held in Chicago, USA. At the 2025 ASCO Annual Meeting, Chinese pharmaceutical companies were selected with more than 70 research results. According to another analysis, benefiting from the news of the PD-1/VEGF dual-antibody SSGJ-707 global equity cooperation between Sansheng Pharmaceuticals and Pfizer, Chinese innovative pharmaceutical companies have accelerated their integration into the global industrial chain through technical licensing, and market expectations for domestically produced innovative drugs to go overseas have been amplified. CITIC Securities pointed out that the number of oral reports at the ASCO conference reached a record high, and China's innovation is at the forefront of the world. Pacific Securities said that with increased liquidity and risk appetite, data and BD catalysis are expected to become the main line throughout the year.

2. New consumer stocks performed brilliantly. At the close, Michelle Group (02097) rose 9.97% to HK$579; Gu Ming (01364) rose 7.29% to HK$28.7; Chaoyun Group (06601) rose 7.66% to HK$2.95; and Bubble Mart (09992) rose 5.42% to HK$233.2.

Recently, the new consumer sector has continued to receive market attention, and segments such as IP entertainment, tea, and pet economy have performed well. Guojin Securities said that unlike the traditional consumer sector, various cutting-edge trends in the new consumer sector are continuing to shape new commercial values, and new logics that are more in line with young people's consumption habits, such as “driven by emotional value,” “its economy,” and “AI+ consumption,” are continuously being tested. Pacific Securities believes that emotional consumption, quality-price ratio, and health have gradually become key factors for the success of large single products, and the sentiment of individual stocks with “new consumption” attributes has not abated. Continue to be optimistic about new channel changes and new category opportunities to meet consumer trends.

3. Airline stocks continued their gains. At the close, China Eastern Airlines (00670) rose 4.63% to HK$2.94; Air China (00753) rose 3.17% to HK$5.86; and China Southern Airlines (01055) rose 2.89% to HK$3.91.

According to reports, many representatives said that OPEC+ will hold a video conference to determine the July oil production of the eight major member states one day ahead of schedule until May 31, and is expected to increase production sharply for the third consecutive month. Furthermore, the RMB exchange rate has strengthened recently. China Aviation Securities pointed out that the current tariff pressure has temporarily eased, the oil price exchange rate trend is friendly, and they are concerned about the recovery in the bottom of Air's performance. Huayuan Securities said that with long-term low supply growth in the industry, demand is expected to benefit from macroeconomic recovery. The trend of the long-term gap between supply and demand is clearly driving a flexible upward trend in the sector, and short-term booking data is expected to pick up. Currently, it is in the phase of reversal of expectations and has allocation value.

4. Auto stocks are generally under pressure. At the close, Brilliance China (01114) fell 1.57% to HK$3.13; GAC Group (02238) fell 0.72% to HK$2.77; and Great Wall Motor (02333) fell 0.67% to HK$11.9.

Recently, a number of car companies have successively released price reduction promotions, which attracted market attention. Haitong International believes that a new round of price war has begun, and car companies will make moves one after another. If industry associations or regulators do not step in, competition in the second half of the year will focus on the ability to reduce costs, and mid-tail car companies with weak cost control may speed up clearance.

It is worth noting that, according to a report by the Financial Federation, the reporter learned from a number of automobile industry chain companies that some car companies, downstream companies and industry organizations received notices from relevant departments to participate in the seminar. The main topics were to promote the high-quality development of used car circulation and discuss “zero kilometer” used cars and content related to further promoting the circulation and consumption of used cars. According to information, Wei Jianjun, chairman of Great Wall Motors, recently said in an interview with the media that due to the price war in the automobile industry over the years, there has been a “zero mileage used car” chaos in the Chinese market.

Popular exotic stocks

1. Shenzhou Holdings (00861) showed strong performance. At the close, it was up 18.08% to HK$3.07.

Shenzhou Holdings announced that shareholder DCG plans to increase the company's shares within 12 months from now through centralized pricing bidding, OTC share transfers, or other means, for a total amount of 428 million yuan (approximately HK$467 million). Currently, Chairman and CEO Guo Wei holds 21.76% of DCG's shares.

2. Zhongan Online (06060) continues to rise. At the close, it was up 12.16% to HK$15.68.

Recently, the “Stablecoin Bill” (hereinafter referred to as the “Ordinance”) submitted by the Hong Kong Special Administrative Region Government of China at the end of 2024 was passed by the Hong Kong Legislative Council in the third reading. A compliant Hong Kong stablecoin is expected to be officially launched before the end of this year. Guojin Securities pointed out that Zhongan Bank (Zhongan holds 43.43% of its shares) has advanced virtual asset business layout and is expected to benefit.

3. Horizon Robot-W (09660) rose significantly. At the close, it was up 11.39% to HK$7.92.

The Shanghai Stock Exchange and Shenzhen Stock Exchange announced that the Hong Kong Stock Exchange list has been adjusted, and Horizon Robot has been transferred to the Hong Kong Stock Connect, which will take effect from May 26. Everbright Securities pointed out that as of April 30, Horizon Robot has met the conditions for inclusion in the Hong Kong Stock Connect. The index will be adjusted after the superposition of the ban is lifted, and the market will inject more liquidity.

4. Giants Biotech (02367) continued its decline. At the close, it was down 5.43% to HK$69.6.

Beauty blogger Hao Yu, who claims to be a “Doctor of Chemistry from the University of Hong Kong,” released a test report indicating that the recombinant collagen content in Kefumei's core product “Collagen Stick” is only 0.0177%, which is far below the lower limit, and the key ingredient glycine is missing, which is suspected of false publicity. In response, Giant Biotech responded urgently, calling the above views “seriously untrue.”

Initial listing of IPOs

1. Jihong shares (02603) were strong throughout the day. At the close, it was up 39.06% to HK$10.68.

Jihong shares are priced at HK$7.68 per share. A total of 67.91 million shares were issued, with a net proceeds of approximately HK$415 million. According to public information, the business of Jihong Co., Ltd. covers cross-border social e-commerce business and paper FMCG packaging business. It is worth mentioning that according to the relevant provisions of the “Shanghai Stock Exchange Shanghai-Hong Kong Stock Exchange Business Implementation Measures”, Jihong Co., Ltd. was the first A+H company to be listed and included in the Hong Kong Stock Connect.

2. The stock price of Peger Biopharmaceutical-B (02565) fell sharply. At the close, it was down 25.9% to HK$11.56.

Priced at HK$15.6 per share, Peger Biopharmaceuticals issued a total of 19.283,500 shares, with a net proceeds of approximately HK$232 million. According to reports, Peger Biotech is a biotechnology company focusing on independent research and development of innovative treatments for chronic diseases (mainly peptides and small molecule drugs), focusing on the field of metabolic disorders. The company has formed a diversified pipeline of six candidate products to seize market opportunities for common chronic diseases and metabolic diseases such as type 2 diabetes, obesity, non-alcoholic steatohepatitis, constipation caused by opioids, and congenital hyperinsulinemia.