---
title: "Zhitong Hong Kong Stock Analysis | The U.S. Treasury steps in to save the situation, gold rises, and progress in cancer vaccines ignites mRNA concept stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296498891.md"
description: "The U.S. Treasury intervened to repurchase long-term bonds to stabilize the market, leading to gains in the three major U.S. stock indices and a decline in U.S. Treasury yields. As a result, spot gold surged to a new high since June. In addition, Moderna's collaboration with Merck on an mRNA cancer vaccine Phase III clinical trial yielded preliminary positive results, igniting mRNA concept stocks. Hong Kong stocks also jumped 0.80%"
datetime: "2026-08-20T13:27:58.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296498891.md)
  - [en](https://longbridge.com/en/news/296498891.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296498891.md)
generator: "portal-rs"
---

# Zhitong Hong Kong Stock Analysis | The U.S. Treasury steps in to save the situation, gold rises, and progress in cancer vaccines ignites mRNA concept stocks

**\[Market Dissection\]**

At critical moments, the U.S. stock market always has rescue measures to save it, and South Korea also has SK Hynix's buyback, temporarily alleviating panic. The A-shares are also in a general upward trend, and the Hong Kong stock market jumped 0.80% today.

In the past, the U.S. stock market was more focused on the Federal Reserve, but the situation has changed. The Federal Reserve led by Christopher Waller is different from before; it does not provide forward guidance and reduces intervention, allowing the market to price itself, somewhat akin to the idea of "governing by doing nothing." Just like the latest minutes from the Federal Reserve's July meeting, there is nothing significant to glean. This cannot continue; U.S. Treasury bonds, especially long-term bonds, are largely anchored by short-term policy interest rates. Without a clear guide from the Federal Reserve, investors will certainly feel uncertain, and any slight disturbance will trigger sell-offs.

At a time when long-term bond yields are continuously rising, we must look to the Treasury Department. On Wednesday morning, Secretary Janet Yellen acted swiftly: significantly increasing the scale of government bond purchases in the existing buyback plan. This strategy had an immediate effect: just hours after the announcement, the yield on 30-year U.S. Treasuries quickly fell by nearly 10 basis points. Meanwhile, all three major U.S. stock indices closed higher, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite Index ending their previous days of decline.

However, the core of this operation by the U.S. Treasury is to save the continuously declining bonds to stabilize the stock market. As a spending department, the Treasury either uses its own reserves to buy back long-term bonds or issues short-term bonds to buy back long-term bonds. Either way, it requires money, ultimately pointing back to the Federal Reserve's money printing. This is actually a vicious cycle, merely extending the issue; the fundamental problem is unlikely to be resolved through the Treasury's purchases. Therefore, the value of gold will continue to stand out. The capital market has already reacted, with spot gold once surging 4.35%, breaking through the significant thresholds of $4,400 and $4,500 during the session, closing at around $4,521, a new high since June 2.

Many domestic gold jewelry brands saw prices soar overnight. Compared to this year's peak of 1,700 yuan per gram, it has fallen over 350 yuan per gram this year. Among them: Chow Sang Sang (00116) reported 1,359 yuan per gram for 24K gold jewelry, a daily increase of 46 yuan; Lao Miao Gold reported 1,355 yuan per gram for 24K gold jewelry, a daily increase of 44 yuan; Lao Feng Xiang reported 1,352 yuan per gram for 24K gold jewelry, a daily increase of 37 yuan. Related gold jewelry stocks such as Chow Sang Sang (00116) surged over 10%; Lao Pu Gold (06181) and Luk Fook Holdings (00590) rose over 7%; Zhitong's August gold stock Zijin Mining International (02259) surged over 11%.

The latest LPR has been released: 3.0% for one year and 3.5% for five years and above, both unchanged. The market is relatively disappointed, but a remedy is coming. On August 20, six departments in Shanghai jointly issued new real estate policies, effective from August 21, 2026. The "Notice" mainly includes eight policy measures in five areas: optimizing housing provident fund withdrawals, optimizing personal housing loans, implementing "old-for-new" home purchase subsidies, promoting housing vouchers for resettlement, and advancing the acquisition of second-hand housing. The overall idea is still focused on reducing inventory outside the outer ring, including lowering down payment ratios and old-for-new exchanges, but with limits on quotas and time, similar to other cities, supported by local finances without interest subsidies During the trading session, news emerged with clear policy direction, leading to core stocks such as Longfor Group (00960), China Jinmao (00817), Vanke Enterprises (02202), Greentown China (03900), and China Resources Land (01109) all rising over 4%.

Innovative drugs are once again driven by events: Yesterday, mRNA vaccine giant Moderna announced that its Phase III clinical trial of a personalized mRNA cancer vaccine developed in collaboration with Merck achieved preliminary positive results, marking a significant step towards the commercialization of mRNA anti-cancer technology. The company's stock surged 177% that night, significantly boosting the Nasdaq Biotechnology Index. mRNA concept stocks reacted quickly, with A-shares such as Watson Bio (300142.SH) and CanSino (688185.SH) hitting the daily limit;

In the Hong Kong stock market, companies like Sihuan Pharmaceutical (01244), which is comparable to Moderna's therapeutic tumor mRNA, saw a nearly 57% increase today; Genscript Biotech (01952): with its self-developed AI-mRNA platform, focusing on therapeutic tumor mRNA vaccines; EVM14 has obtained IND approval in China and the U.S., and EVM16 personalized neoantigen mRNA tumor vaccine has completed its first administration, making it one of the few tumor mRNA vaccine pipelines to enter clinical stages. Today it rose over 38%;

Jitai Technology-P (07666): covering HPV tumor mRNA therapy MTS-107, while also providing LNP delivery technology (selling shovels), with multiple mRNA pipelines entering clinical stages. Today it rose over 30%; preventive mRNA vaccine stocks mainly include CanSino Biologics (06185) rising over 36%, Aimee Vaccine (06660) rising nearly 15%, and CSPC Pharmaceutical Group (01093) rising over 9%; upstream raw material CDMO Kingsray Biotechnology (01548) rose nearly 14%.

It should be noted that Moderna's breakthrough is overseas, while all domestic counterparts are still in preclinical or early clinical stages, far from commercialization. Therefore, it is normal for most stocks to rise and then fall back, and we will look at real performance and pipeline progress in the future.

InSilico Medicine (03696) announced on August 20 that it has officially reached a research cooperation agreement with Byterna Therapeutics, which focuses on next-generation RNA innovative drug development. The two parties will collaborate on AI neoantigen prediction and sequence design, circular mRNA, targeted delivery, automated experiments, and intelligent manufacturing to build a next-generation mRNA AI-native research engine, exploring personalized tumor vaccines and related innovative therapies. This announcement came at the right time, with a rise of over 12% today.

Other companies reflecting overseas trends include Palantir, which saw a 94% year-on-year increase in revenue in the second quarter of this year, significantly raising its full-year sales forecast to $8.16 billion, far exceeding market expectations. Analysts believe that Palantir's "body + FDE" model has successfully run through, confirming that industrial AI and "sovereign AI" are the core directions for the future. The market commonly refers to Haizhi Technology Group (02706) as the "Chinese version of Palantir," as both have highly compatible underlying technologies and government-enterprise service business models. Palantir's high growth and high-profit earnings report directly validates the long-term prosperity of the "graph + controllable AI" industrial route, opening up valuation imagination space for similar domestic companies Today, Haizhi Technology Group (02706) rose over 15%.

Today, the technology sector overall rebounded, but the extent was not large. The standout performer was Cambridge Technology (06166), which rose over 6% due to strong earnings. Funds are shifting towards AI applications, with Maifushi (02556) making significant gains; the company's interim report showed a profit growth rate of 466.1% and AI business growth of 123.7%, becoming the core engine of strong earnings growth. Customer structure: both the number of customers and ARPU improved simultaneously, not just relying on a few large orders. Operating cash flow turned from a significant loss to a net inflow of 500 million, with quality significantly improved. Today, it rose over 7%; a similar stock, XunCe (03317), is predicted by institutions to be included in the Hang Seng Technology Index, rising nearly 8% today. Other AI-related companies experiencing rapid growth include Kingdee International (00268), which rose over 7%.

**【Sector Focus】**

Data from the China Association of Automobile Manufacturers revealed that in July, automobile exports reached 1.043 million units, a month-on-month increase of 0.6% and a year-on-year increase of 81.3%, marking two consecutive months of exports exceeding 1 million units; in July, the monthly sales of new energy vehicles accounted for over 60% for the first time, with national automobile production and sales from January to July reaching 17.567 million and 17.602 million units, respectively, with the year-on-year decline further narrowing compared to the first half of the year.

The 29th Chengdu International Automobile Exhibition will be held from August 21 to 30, 2026, at the Western China International Expo City. As the first A-level auto show in the second half of the year, the Chengdu Auto Show will gather independent brands, luxury brands, mainstream joint venture brands, and new energy vehicle brands, showcasing the latest progress in the electrification, intelligence, and high-end development of China's automotive industry, which is expected to stimulate car manufacturers.

Main Hong Kong stock varieties: Li Auto-W (02015), Voyah (07489), XPeng Group-W (09868), BYD (01211), Leapmotor (09863), Geely Automobile (00175).

**【Stock Picking】**

**BYD (01211): Fangcheng Leopard new products targeting the mid-range off-road market, overseas energy storage capacity in high demand**

On August 20, BYD officially announced that its Fangcheng series new models, Fangcheng S and Fangcheng S GT, have officially opened for nationwide reservations. Priced at 230,000 to 280,000, it is a new mid-size rugged SUV. The company's revenue for the first quarter of 2026 was 150.225 billion yuan, a year-on-year decline of 11.8%; net profit attributable to shareholders was 4.085 billion yuan, under short-term pressure, but gross margin rebounded to 18.81%.

**Comment**: BYD's expansion of the Fangcheng Leopard product line mainly targets the mid-range off-road market. The company's global penetration rate of new energy continues to rise, and energy storage is a trillion-level incremental track, with the company occupying leading positions in two high-growth tracks.

Revenue from BYD's new energy passenger vehicles accounts for over 80%, covering all price ranges with the Dynasty, Ocean, Tengshi, Fangcheng Leopard, and Yangwang brands, operating both hybrid and pure electric lines, making it the global sales champion in new energy. The energy storage system is the company's second growth curve, with Haohan energy storage and integrated solar storage for grid-side/home use. High-margin overseas business is booming, with the company's overseas vehicle gross margin significantly higher than domestic, and by 2026, overseas business is expected to contribute nearly 80% of the net profit from complete vehicles, becoming the core incremental profit. Energy storage is simultaneously landing globally in the Middle East, Europe, and Latin America, with a clear advantage in integrated solar storage solutions Full order backlog, energy storage orders: 2026 major overseas contracts, strongest certainty. 1) UAE Masdar 11.275GWh energy storage system to be implemented in July 2026, the world's largest single energy storage procurement contract, paired with a 5.2GW photovoltaic power station, industry estimates contract scale of 4.4-10.9 billion yuan, delivery in 2027-2028; battery capacity equivalent to 186,000 new energy vehicle batteries. 2) Poland 600MW/2.4GWh energy storage project, the largest lithium battery energy storage station in Poland's history, construction to start in Q3 2026, grid connection by the end of 2027, a benchmark order in Europe, opening up the EU energy storage market space. 3) Saudi Arabia 12.5GWh grid-side energy storage project, previously established a giant energy storage project in the Middle East, solidifying the leading position in the Middle East market.

Complete vehicle orders: 1) Domestic: Orders for Dynasty, Ocean, Equation Leopard, and Tengshi models are full, significant recovery in customer traffic for second-generation fast-charging models, domestic market share expected to rebound to 23%-27% by the end of the year. 2) Overseas complete vehicles: 792,200 units delivered overseas in the first half of 2026 (up 71% year-on-year), institutions expect annual overseas sales of 1.5-1.8 million units, aiming for 2.5 million units in 2027; long-term orders locked in with overseas dealers, Hungary and Thailand factories ramping up capacity to meet delivery demands. 3) Battery supply: Long-term supply to Tesla, Toyota, and Renault, stable annual framework agreements with overseas automakers, continuous supply increment.

Company's 2026 sales expectations from institutions project annual new energy vehicle sales to reach 5 million units, with 1.7 million units overseas. BYD's overseas market is growing rapidly, having achieved a leading position in markets such as the UK, demonstrating strong long-term competitiveness, with giant energy storage orders bringing certain revenue

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**