"Market Review" Hang Seng Index stops consecutive decline, northbound capital turns to a net outflow of 27.3 billion yuan, Laopu Gold rebounds by 16%

Market attention is focused on the possibility of US-Iran negotiations, with the Hang Seng Index rebounding today (24th) after three consecutive declines (a total drop of 1,642 points or 6.3%), regaining the 25,000 mark. US President Donald Trump announced that negotiations between the US and Iran are progressing smoothly, and the US will suspend attacks on Iranian power plants and energy infrastructure. The Dow Jones and Nasdaq both rose 1.4% on the night of the 23rd. At the time of writing, the yield on US 2-year bonds rose to 3.876%, the yield on US 10-year bonds rose to 4.364%, and the US dollar index rose to 99.34. Dow futures are currently down 71 points or 0.15%, and Nasdaq futures are down 25 points or 0.1%. The Shanghai Composite Index rose 68 points or 1.78% to close at 3,881 points, while the Shenzhen Component Index rose 1.4%, with a total trading volume of 2.08 trillion yuan in the Shanghai and Shenzhen markets.

The Hang Seng Index opened high, rising 377 points with the increase fluctuating, reaching a high of 25,077 points during the session, and closing at 25,063 points, up 681 points or 2.8%; the Hang Seng China Enterprises Index rose 191 points or 2.3% to close at 8,499 points; the Hang Seng Tech Index rose 118 points or 2.5% to close at 4,830 points. The total trading volume for the day was 303.073 billion yuan. The total trading volume of northbound funds was 143.752 billion yuan, while southbound funds had a net outflow of 27.361 billion yuan today (with a net outflow of 29.728 billion yuan on the previous trading day). The Tracker Fund (02800.HK) rose 2.7% to close at 25.36 yuan, with a trading volume of 30.345 billion yuan.

Financial stocks rebounded, with HSBC (00005.HK) and Hong Kong Exchanges and Clearing (00388.HK) rising 4% and 2.4% respectively, AIA (01299.HK) jumping 7.2% to close at 85.1 yuan, and Standard Chartered (02888.HK) rising 5.7%. Among Chinese financial stocks, Ping An Insurance (02318.HK) rose 3.5%.

【Hang Seng Index Stops Declining, Laopuhuang Rises】

Metals rebounded, with gold stocks Zijin Mining (02899.HK), Zhaojin Mining (01818.HK), and China Gold International (02099.HK) rising 7.2% to 8.2%, while WanGuo Gold (03939.HK) and Lingbao (03330.HK) rose 9.5% to 10%. Long Resources (01712.HK), Shandong Gold (01787.HK), and Zijin Gold International (02259.HK) rose 4.2% to 6.1%, and resource stocks Luoyang Molybdenum (03993.HK), Hongqiao (01378.HK), and Minmetals Resources (01208.HK) rose 6.6% to 7.4%.

Jewelry retail stock Laopuhuang (06181.HK) reported a 2.3 times increase in net profit last year and an increase in dividends, expecting a net profit of about 3.6 billion to 3.8 billion yuan in the first quarter of this year. The stock price rose over 16% to close at 648.5 yuan, making it the largest gainer among blue-chip stocks. Goldman Sachs released a report stating that Laopuhuang's net profit last year reached 4.868 billion yuan, falling within the range of positive earnings expectations In the second half of 2025, revenue is expected to grow by 200% year-on-year to 14.949 billion yuan, slightly below the bank's expectations, but offset by better-than-expected gross margins and lower-than-expected selling and administrative expenses. The bank believes this is mainly due to early stocking and improved operational efficiency. The bank also mentioned that the company announced preliminary results for the first quarter of this year, which far exceeded market expectations. Among them, revenue is expected to reach 16.5 billion to 17.5 billion yuan, an increase of 34% to 42% compared to the revenue in the first half of 2025, and the bank estimates a year-on-year growth of over 100%, with net profit margins also higher than expected. The bank believes this is mainly benefited from early stocking and operational leverage. The bank maintains a "Buy" rating on Laopu, with a target price of HKD 1,168.

【Seventeen hundred stocks rise, WuXi AppTec dances】

The Hong Kong stock market improved today, with a rise-to-fall ratio of 41 to 11 for main board stocks (compared to 7 to 48 yesterday), with 1,719 rising stocks (an increase of 3.4%); today, 81 constituent stocks of the Hang Seng Index rose, while 8 fell, with a rise-to-fall ratio of 90 to 9 (compared to 2 to 98 yesterday); the market recorded short selling of HKD 53.599 billion today, accounting for 20.006% of the total turnover of shortable stocks of HKD 267.909 billion (compared to 24.96% yesterday).

Master Kong (00322.HK) earned 21% more last year, with a final dividend including a special dividend of 79.84 cents per share, and the stock price rose 10% for the day. China Resources Beer (00291.HK) management reiterated the mid-term dividend payout ratio target increased to 60% to 70% at the earnings release conference, with the stock price rising 8.2% for the day. Mixue (02097.HK) saw a 33% increase in net profit last year, with the stock price rising 6% for the day.

In addition, pharmaceutical stocks WuXi AppTec (02359.HK) saw a 1.05 times increase in annual net profit, with the stock price rising 10.6% for the day. WuXi Biologics (02268.HK) saw a 38% increase in annual net profit, with the stock price rising 10.5%. WuXi Biologics (02269.HK) rose 4.6%