Zhitong Hong Kong Stock Exchange Unravels | Expectations that the Fed will cut interest rates in June strengthen the trend, change the direction of the wind, and rise of technology

[Anatomy Dashboard]

Expectations that the US is expected to cut interest rates have suddenly surged. This has undoubtedly brought a surprise to the market. Hong Kong stocks directly jumped 1.07% today.

ADP added 37,000 new jobs in May: a new low since March last year, far below market expectations of 114,000. Tariffs have begun to affect companies' willingness to hire, and the resilience of the overall job market has begun to loosen. The ISM Services Index fell below 50 (49.9): This is the first time in nearly a year that it has fallen back to a contraction range. The above data also shows the initial impact of tariffs on the economy, and the real impact will become apparent 3 months after the tariffs are implemented. After the data was released, Trump was clearly in a hurry: “The ADP data is out! 'Big late' Powell must cut interest rates now. He's amazing!!! Europe has dropped nine times!” Furthermore, the latest national economic situation survey report released by the Federal Reserve on June 4 shows that US economic activity has declined slightly since the last report. Businesses and consumers are under pressure from rising policy uncertainty and increasing price pressure, and the overall economic outlook is still pessimistic. As can be seen, the Federal Reserve is also aware of the seriousness of the problem. Next, let's take a look at the non-agricultural and inflation data. If neither is ideal, interest rates are likely to be cut in June. Because Powell dared to carry it without falling, he wouldn't dare to carry this pot.

The Hang Seng Index is good today, but individual stocks have changed a bit. What do you mean, the craze is bound to die. Take a look at the latest section: “Some die-hard people are still looking forward to another wave in the robotics industry to unravel themselves. The future is a sea of stars. But the money-making effect doesn't lie. Look, our new consumers make money by drinking sparkling rice wine, playing cards, and playing with blind boxes and jewels.” Among them, Old Shop Gold (06181) fell by more than 9%. E-cigarettes didn't hold up either, and SMORE (06969) fell by more than 11%. Pharmaceutical stocks have not been spared either.

Finally, it's the tech stock's turn. There is also a lot of catalytic news today. The 2025 Tianjin Five Avenue Financial Forum was held in Tianjin today. Zhou Liang, deputy director of the China Financial Supervisory Administration, said in his speech that the General Administration of Financial Supervision and Administration will continue to increase financial support for technological innovation. Combined with the Lujiazui Forum later, the benefits in the direction of science and technology are also worth anticipating.

In fact, US technology stocks have also been strong recently; the limelight has only been overshadowed. Nvidia regained the world's top market capitalization, reaching $3.46 trillion; Broadcom hit a record high with a total market capitalization of $1.23 trillion. Nvidia's supporting concept, Hongteng Precision (06088), rose by more than 13%. Judging from the computing power, North American AI has entered the million-card cluster era. The supercomputing cluster built by Elon Musk's xAI company in Memphis, Tennessee, was initially composed of 100,000 Nvidia Hopper GPUs. Musk also hinted that the cluster size will soon be doubled to 200,000 GPUs, and there are plans to expand to 1 million GPUs in the future. Broadcom's three hyperscale customers plan to deploy 1 million XPU clusters on a single architecture by 2027. At present, China is still stuck in the era of 10,000 card clusters. For example, China Mobile's three major clusters only have a total size of nearly 60,000 GPU cards. Most of the other tech giants are at the level of 10,000 +, and quite a few are domestic cards. There's still plenty of room for improvement. As a result, demand for the AI server ZTE (00763) came out. Today, it has risen by nearly 6%, and the cloud-concept Jinshan Cloud (03896) and Kingdee International (00268) have both risen by more than 7%. Chips are also clearly benefiting. WSTS expects the global semiconductor market to grow 11.2% year over year, while SMIC (00981) and Huahong (01347) both rise by more than 4%.

Recently, China Mobile Guangdong Branch launched a public tender and procurement project for hybrid optical cables in 2025. The procurement of hybrid optical cables includes G.652D and air optical fibers with a total length of 38 kilometers. This is the first bid for air core optical fiber from testing to commercial use. According to the maximum price of 200,000 yuan/kilometer per kilometer, the unit price of air-core optical fiber collected this time is close to 50,000 yuan/core kilometer, which is 2,500 times that of solid core optical fiber. In terms of air core optical fiber, Changfei Optical Fiber Cable (06869) said it has completed the current network pilot project with the three major domestic operators and has carried out cooperative tests with many equipment vendors and Internet vendors, leading the world in related indicators. The market is expecting it to win the bid, up more than 7% today.

On Thursday, Nintendo's new console, Switch 2, was officially released globally. Switch 2 is very similar to the previous console in many aspects of the product design, but has a larger screen, better picture quality, and will release exclusive debut escort games, including “Mario Kart World.” The market generally expects Switch 2 to be in short supply worldwide. Amp predicts that Switch 2 will sell more than 100 million units by 2030. Currently, Nintendo has sold a total of 152 million first-generation Switches. This news is a big stimulus for game stocks. New game catalysts such as Zhongxu Mirai (09890), Xindong (02400), and China Mobile Games (00302) were sought after, all rising by more than 8%.

Consumer electronics also fell quite badly. There was also major news. On June 5, the official Weibo account of the Huawei terminal announced that the Huawei Pura 80 Pro and Huawei Pura 80 Pro+ will open pre-orders at 10:08. After about two and a half hours, the number of reservations exceeded 40,000. Huawei offline stores have also issued pre-sale notices, and priority pickup is possible with a deposit of 100 yuan. Apple's annual Global Developers Conference (WWDC) will be held from June 10 to 14. New catalysts are expected. Related stocks of Gaowei Electronics (01415), Sunyu Optics (02382), and Ruisheng Technology (02018) all rose by more than 6%.

Rare-earth permanent magnets, which have been mentioned repeatedly recently, are still fermenting. The main reason is that overseas rare earth prices have risen sharply. As a countermeasure tool, Jinli Permanent Magnet (06680) has once again surged by more than 12% today.

The “27th Shanghai International Film Festival” launched ticket sales today on the two major platforms of Daimai and Ticketing. The number of tickets sold reached 370,000 in one hour, surpassing last year's 355,000 tickets. Among them, 92 films and 600+ shows were sold out, and the “Golden Jade Award Main Competition Best Director's Film” sold out in just 26 seconds. It can be seen that after house buying weakened, other consumption was still very strong. The transformation of Alibaba Pictures (01060) was very wise. Today, it has once again risen by more than 5%.

Another Alibaba concept, Gaoxin Retail (06808), is also good. The company is also actively changing. The five major operating areas of Da Runfa have been changed to four major operating areas, namely East China, South China, North China, and Northeast China. The company is transforming its business as planned, focusing on sales scale and absolute gross profit for the 2026 fiscal year. The future is to go in the direction of Sam's Club, which is up more than 7% today.

[Section Focus]

The US Federal Communications Commission (FCC) Space Agency has approved Globalstar's application to expand its second-generation “Direct Attached Device” (D2D) satellite constellation, a plan aimed at providing network coverage services for Apple devices. The total number of low-orbit commercial satellites planned by China is 80,000. According to international satellite rules, satellite deployment needs to be completed within a 7-year validity period. China currently has 492 commercial satellites in orbit. The market space is huge. Low-orbit satellite constellations (such as the GW constellation and the Thousand Sails constellation) have accelerated networking, and the satellite mass production technology is mature, and the cost of a single star has been reduced to 500,000 US dollars (80% lower than in 2020). Breakthroughs in recyclable rocket technology (such as Blue Arrow Space Suzake-3) have drastically reduced launch costs, and the cost of a single launch may be reduced to 1/3 of SpaceX. 2025 can be predicted to be the busiest year in the history of global satellite launches, and it is also the year when China's commercial space enters the explosion period.

Main varieties: Shanghai Fudan (01385), Nanjing Panda Electronics Co., Ltd. (00553), Asia Pacific Satellite Holdings (01045)

[Individual Stock Mining]

Jiantao Group (00148): Major shareholders increase their holdings and release confidence. Various business improvements are promising

On June 3, Chairman of the Board of Directors Zhang Guorong increased his holdings of Jiantao Group (00148) by 150,000 shares, at a price of HK$23.0833 per share, for a total amount of approximately HK$3.4625 million. After the increase in holdings, the latest number of shares held was approximately 16.0484 million shares, and the latest shareholding ratio was 1.44%.

Comment: The company is the world's largest producer of copper-clad panels, leading the market share and vertically integrating the industrial chain to strengthen its cost advantage. The business spans chemicals, electronic materials and real estate. Main business: Development of high-frequency high-speed copper-clad panels (low dielectric constant/low thermal expansion coefficient) to meet the needs of AI computing power servers, 6G communications and NEV radars; adding 400,000 monthly copper-clad panels and 200,000 square feet of PCB production capacity in 2024, actively seizing the Southeast Asian market. Chemical business: The project with an annual output of 800,000 tons of acetic acid was put into operation. After the project was put into operation, the total acetic acid production capacity reached 1.4 million tons/year, and the output value of the chemical sector is expected to be 5 billion yuan in 2025. Compared to 2024, this is a significant increase of 2.2 billion yuan. The Huizhou site has 450,000 tons of phenol acetone (already in production) and 240,000 tons of bisphenol A (put into operation in 2024), supporting the demand for engineering plastics and photovoltaic films for new energy vehicles; real estate: clearly withdrawing from mainland housing development in 2024, accelerating the elimination of stock projects (Kunshan Jingting, etc.), focusing on leased properties (annual rental revenue exceeding HK$1.4 billion) to reduce performance fluctuations. Looking back, at the end of 2025, the first phase of the Beihai Green New Material Industrial Park (340,000 tons of caustic soda and 140,000 tons of epoxy chloropropane) will be put into operation, radiating the Southeast Asian market; AI material certification: If high-frequency copper-clad plate customer test results are implemented, it may trigger order volume. The historical dividend rate was superior to deposit interest rates, and the final interest rate of HK$0.36 was still paid at a low performance in 2023. Major shareholders continue to increase their holdings to unleash confidence.