The Hang Seng Index rose 69 points, briefly recovering the 25,000 mark, which had reached a three-year high. E-commerce stocks surged, while power equipment and cement stocks were actively traded

The People's Bank of China announced this morning (21st) that the one-year and five-year LPR for July remain unchanged at 3% and 3.5%, respectively, in line with expectations. Hong Kong stocks opened higher this morning (21st). The Hang Seng Index opened up 165 points or 0.7%, reporting 24,991, and at one point rose 185 points to reach 25,010, marking the highest level in over three years since February 2022. Subsequently, the gains narrowed, closing up 69 points or 0.3% at 24,895; the National Index closed at 8,999, up 12 points or 0.1%. The Hang Seng Tech Index rose 17 points or 0.32%, reporting 5,556. The half-day turnover of Hong Kong stocks was HKD 151.439 billion.

The mainland government intervened in the "involution" of e-commerce platforms, with the State Administration for Market Regulation summoning Meituan-W (03690.HK), Alibaba-W (09988.HK) subsidiary Ele.me, and JD-SW (09618.HK), requiring further regulation of promotional activities and rational participation in competition to build a good ecosystem and healthy sustainable development. Meituan rose 2.7% in the half-day, while Alibaba and JD rose 1.8% to 2.2%. Tencent (00700.HK) slightly fell by 0.3%.

The mainland further regulated the competitive order of the new energy vehicle industry, with the central guidance team encouraging leading new energy vehicle companies to compete reasonably and play a demonstration role. The performance of major automotive stocks was mixed in the half-day, with BYD (01211.HK) remaining stable with a slight increase of less than 0.1%. Xiaomi-W (01810.HK) rose slightly by 0.2%. Nio-SW (09866.HK) and GAC (02238.HK) rose by 2.4% to 2.6%. XPeng-W (09868.HK) slightly fell by 0.3%, while Leapmotor (09863.HK) and Li Auto-W (02015.HK) fell by 1.1% to 1.4%.

Geely (00175.HK) fell 3.6% in the half-day, underperforming its peers, reporting HKD 18.24, with a turnover of HKD 1.128 billion. Geely's subsidiary ZEEKR (ZK.US) was accused by state media of falsifying sales, which ZEEKR denied, stating that the related vehicles were display cars. Chang'an Automobile (02333.HK) fell 0.8% in the half-day, with its earnings report indicating a 10.2% year-on-year decline in net profit to RMB 6.337 billion for the first half.

Xinyi Solar (00968.HK) rose 3.2% in the half-day, reporting HKD 2.92. The company issued a profit warning, stating that due to product price declines, it expects to earn 56% to 66% less in the first half. Its affiliate Xinyi Glass (00868.HK) fell nearly 1%, also issuing a profit warning, indicating a projected net profit decline of 55% to 65% due to continued gross margin decreases.

Some major banks indicated that the Wahaha inheritance case may benefit mainland listed beverage peers, with Nongfu Spring (09633.HK) closing at HKD 44.6, up 3.7%, making it the largest blue-chip stock gain, with a turnover of 10.5376 million shares, involving HKD 467 million. China Resources Beverage (02460.HK) and Master Kong (00322.HK) also rose by 1.7% to 2.4% in the half-day The Yarlung Tsangpo River downstream hydropower project broke ground last Saturday (19th), with a total of 5 planned stepped power stations, an installed capacity expected to be 60 to 70 million kilowatts, and an annual power generation of about 300 billion kWh, primarily for external delivery while also meeting local demand in Tibet. The total investment for the project is approximately 1.2 trillion yuan, with estimated unit investment around 17 to 20 yuan/W. Power equipment stocks listed in Hong Kong surged collectively. Dongfang Electric (01072.HK) opened 14.9% higher today, initially soaring about 7 times, reaching a historical high of 119.9 yuan, but then the gains narrowed sharply, closing at 26.45 yuan, up 77.3%, with trading volume surging to 6.986 billion yuan. China Energy Engineering (03996.HK), Northeast Electric (00042.HK), and Harbin Electric (01133.HK) also saw significant trading, rising about 22% to 30%. Shanghai Electric (02727.HK) rose 7.5% in half a day.

Cement stocks also surged, with Huaxin Cement (06655.HK) initially rising about 100%, reaching a high of 20.1 yuan, the highest since its H-share listing, and closing at 17.1 yuan, up 70.7%, with trading volume surging to 2.166 billion yuan. China Resources Cement Technology (01313.HK) jumped 10.1% in half a day. China National Building Material (03323.HK), Anhui Conch Cement (00914.HK), and Western Cement (02233.HK) also rose between 5.8% and 7.4%.

Infrastructure stocks China Railway (00390.HK), China Railway Construction (01186.HK), and China Communications Construction (01800.HK) also rose 3% to 3.6% in half a day.

China Galaxy published a research report indicating that central state-owned enterprises in construction, such as China Power Construction (601669.SH) and China Energy Engineering, will be the first to benefit as the main bodies for hydropower project surveying, design, and construction. Additionally, central enterprises like China Railway, China Railway Construction, China Communications Construction, and China State Construction (601668.SH) are expected to benefit from their global layout in the hydropower station infrastructure construction field in the future. Furthermore, CICC stated that the installed capacity of the Yarlung Tsangpo hydropower project may be about three times that of the Three Gorges Project, representing a major national project, and is optimistic about the long-term potential for electrical equipment. Currently, China's hydropower equipment has achieved full localization, with Harbin Electric and Dongfang Electric being the main suppliers.

Morgan Stanley also indicated that the Yarlung Tsangpo hydropower project is expected to benefit the cement and steel industries directly during the construction phase, with total cement demand for the project estimated to reach 20 to 30 million tons, with an average annual demand of 1 to 1.5 million tons. Among them, Huaxin Cement's Tibet production base is only 400 kilometers away from the project, and Morgan Stanley expects Huaxin Cement to become the biggest beneficiary, while China National Building Material and Anhui Conch Cement's Tibet capacity will also benefit