Hong Kong stocks closed (08.25) | Hang Seng Index closed down 0.02% CRO, innovative drug concept surged, and Xiaopeng Group-W (09868) fell 9% after performance

The Zhitong Finance App learned that Hong Kong stocks weakened after opening slightly higher today, and the three major indices fluctuated repeatedly. At the close, the Hang Seng Index fell 0.02% or 6.23 points to 25511.1 points, with a full day turnover of HK$254.079 billion; the Hang Seng State-owned Enterprises Index fell 0.31% to 8445.37 points; and the Hang Seng Technology Index fell 0.12% to 4588.54 points.

Guoyuan International believes that the decline in short-term interest rate hikes will help the valuation of Hong Kong stocks, but high long-term US bond yields, weak domestic fundamentals, and insufficient incremental capital still limit the index's further upward trend. Therefore, the bank still uses “index fluctuations, sector differentiation and rotation” as the current benchmark situation.

Blue-chip stock performance

Yao Ming Biotech (02269) led the blue chip increase. At the close, it rose 7.41% to HK$52.2, with a turnover of HK$3,056 billion. Contributed 21.74 points. UBS previously stated that after the strong performance of Yao Ming Biotech from January to April, the momentum of new orders from May to June remained healthy. The European and US markets continued to grow, and the Chinese market also showed a steady recovery trend. New technology platforms, in particular bispecifics (bispecifics), remain a major driver.

In terms of other blue-chip stocks, Lenovo Group (00992) rose 3.91% to HK$30.8, contributing 12.08 points to the Hang Seng Index; Yao Ming Kangde (02359) rose 3.29% to HK$204.2, contributing 4.78 points to the Hang Seng Index; Oriental Overseas International (00316) fell 4.8% to HK$168.4, dragging down 1.72 points; Zijin Mining (02899) fell 3.64% to HK$37.04, dragging down the Hang Seng Index by 12.82 points.

Popular sector aspects

On the market, large technet stocks had mixed ups and downs. Huge after-sales executives joined forces to increase their holdings, and Alibaba's stock price picked up; mid-term performance improved, with CRO and innovative drug concepts surging, and Gloria Ying once rose more than 20% in the afternoon; driven by AI computing power and price increases, Jiantao led the PCB concept; Bitcoin broke 80,000 US dollars after 3 months, and related ETFs were active; storage chips and AI concept stocks performed brilliantly. On the other side, gold stocks all declined, and lithium batteries, shipping stocks, and gaming stocks were under pressure.

CRO and innovative drug concepts are booming. At the close, Genting Xinyao (01952) was up 18.46% to HK$36.84; Gloria Ying (06821) was up 16.02% to HK$128.9; Pharmaceuticals Syndicate (02268) was up 14.83% to HK$80.15; and Kingsley Biotech (01548) was up 7.42% to HK$35.04.

On the evening of August 24, several pharmaceutical companies disclosed their 2026 semi-annual reports. Judging from performance performance, corporate revenue has generally achieved steady growth, profit levels have continued to recover, and the trend of industry recovery has become more clear. Gloria Ying achieved adjusted net profit of 753 million yuan in the first half of the year, an increase of 12.90% over the previous year. As of the disclosure date of the interim report, the total number of active orders was US$1,673 million, up 53.77% year on year; the revenue for the first half of the year was 3.71 billion yuan, up 41.5% year on year at fixed exchange rate (CER); adjusted net profit to mother was 1,027 billion yuan, up 37.4% year on year.

It is worth mentioning that recently the Moderna cancer vaccine phase 3 collided, and mRNA and AI pharmaceuticals were once again ignited. Everbright Securities believes that the results of Moderna's phase III study represent that the mRNA cancer vaccine has achieved “mechanism verification” and is expected to boost the recovery of Biotech financing activities in this field. In the medium to long term, mRNA cancer vaccines may also expand from cancer types sensitive to immunotherapy (non-small cell lung cancer, bladder cancer, kidney cell, etc.) to cancer that is not sensitive to immunotherapy (pancreatic cancer, gastric cancer, etc.). The commercial value of mRNA vaccines has been reshaped, and “water sellers” in the industrial chain are expected to continue to benefit.

Jiantao leads the PCB concept. At the close, Jiantao Laminate (01888) rose 13.79% to HK$39.94; Jiantao Group (00148) rose 11.78% to HK$50.95.

Driven by the acceleration of AI industrialization, the supply of copper-clad panels and their upstream materials was in short supply. Jiantao Laminate's revenue for the first half of this year was HK$14.904 billion, up 55.44% year on year; net profit to mother was HK$2,887 billion, up 209.28% year on year. The operating profit of the core copper clad plate and upstream business reached HK$3.8 billion, and the operating profit margin increased to 25.9%. Notably, the company said that entering the second half of 2026, the shortage of electronic glass fiber cloth became more serious, and the price of copper clad sheets and upstream materials continued to soar. The company's profit in July 2026 was about HK$1.1 billion, a record high in a single month.

Domestic housing stocks generally rose today. At the close, Country Garden (02007) rose 6.49% to HK$0.197; China Overseas Hongyang Group (00081) rose 5.86% to HK$2.71; and Sunac China (01918) rose 4.59% to HK$0.57.

The Shanghai Municipal Housing, Urban-Rural Development Administration and six other departments jointly issued the “Notice on Optimizing the City's Real Estate Policies and Measures” (hereinafter referred to as the “Shanghai Eight Rules”). On the first weekend of the implementation of the “Shanghai Eight Rules” new policy, the Shanghai new housing market once again showed a daily boom. 64 properties launched in two batches at the Sanbaoye Hongqiao National Exhibition in the Xujing section of Qingpu were quickly liquidated. This is also the third real estate in Shanghai to open and sell out in the past 10 days. According to Orient Securities, the short-term timing window for grasping the trading market at the end of the third quarter and the end of the fourth quarter; in the medium term, 2027 is expected to be the starting point for a systematic beta revaluation of the real estate sector.

Gold stocks had the highest decline. At the close, Lingbao Gold (03330) fell 6.47% to HK$23.12; Chifeng Gold (06693) fell 4% to HK$41.72; and Shandong Gold (01787) fell 3.51% to HK$25.84.

Spot gold once surged to around 4,700 US dollars this morning, but then recovered all of its gains during the day. There was news on Monday that the US Treasury Department is considering using close to 1 trillion US dollars of Treasury General Account (TGA) funds to fund the recently expanded US debt repurchase program. The news once drove 10-year and 30-year US Treasury yields back down. Notably, at a time when market sentiment was rising, the options market was surprised to see a rare huge bearish bet. Currently, the market is waiting for the upcoming Jackson Hole conference. In particular, Walsh's speech has attracted much attention.

Popular exotic stocks

Junzheng shares (03223) closed flat at HK$100.

Junzheng Co., Ltd. was officially listed on the main board of the Hong Kong Stock Exchange today, achieving an “A+H” dual platform layout. The company is a “storage+computing+simulation” chip provider. Using industry trends and proprietary technology, it provides memory chips optimized for AI workloads, computing chips with chip acceleration and inference functions, and analog chips that achieve intelligent sensing and power management.

Changfei Optical Fiber Cable (06869) is trending strongly. At the close, it had risen 15.41 percent to HK$162.5.

Changfei Optical Fiber Cable achieved operating revenue of about 9.809 billion yuan in the first half of the year, an increase of about 53.6% year on year; net profit attributable to shareholders of the parent company was about 2,924.5 billion yuan, an increase of 889.0% year on year. The interim dividend was $1.06 per share (before tax). Looking at the second quarter of a single quarter, the company achieved revenue of 6.114 billion yuan, an increase of 65.4% over the previous month; net profit to mother was 2,430 billion yuan, an increase of 390.7% over the previous quarter.

Special Step International (01368 ) rose in the afternoon. At the close, it rose 6.16% to HK$3.79.

In the first half of the year, Teb International received revenue of 6.795 billion yuan, a year-on-year decrease of 0.62%; profit attributable to the company's common equity holders was 818 million yuan, a year-on-year decrease of 10.47%; the board of directors declared an interim dividend of 18.0 HK cents per share, which was the same as the previous year, and interest-bearing shares could be collected in lieu of cash. The payout ratio increased to 53.8%.

Xiaopeng Group-W (09868) suffered a severe setback after the results. At the close, it was down 9.19% to HK$43.3.

Xiaopeng Group achieved total revenue of 19.74 billion yuan in the second quarter, up 8% year on year and 51.5% month on month; however, net loss was 1.34 billion yuan, up nearly 1.8 times year on year, and narrowed by 25.1% month on month. Xiaopeng expects to deliver 115,000 to 121,000 vehicles in the third quarter, with a year-on-year change of about -0.87% to 4.30%; revenue guidance is 21.7 billion yuan to 23.4 billion yuan, an increase of about 6.5% to 14.8% year-on-year.