On June 24, Hong Kong stocks surged in the morning but fell back, fluctuating in a narrow range at low levels. By the lunch break, the Hang Seng Index rose 0.04% to 23,344.6 points, the Hang Seng TECH Index rose 1.34% to 4,458.04 points, the China Enterprises Index fell 0.12% to 7,749.76 points, and the Red Chip Index fell 0.92% to 3,852.85 points.

On the market, most large technology stocks declined. Alibaba fell 0.3%, Tencent Holdings rose 1.01%, JD.com fell 2.24%, Xiaomi Group fell 0.53%, NetEase fell 0.59%, Meituan fell 1.36%, Kuaishou fell 0.65%, and Bilibili rose 0.32%. The semiconductor (core stocks) sector surged, with Hua Hong Grace rising 16%, SMIC rising over 8%, and Zhaoyi Innovation rising over 5%. The innovative drug concept exploded, with Kingsoft soaring 10%. Airline stocks rebounded, with China National Aviation rising over 3%. Two new stocks were listed today, with Micot Pharma (core stock) rising over 89% on its first day and XianGong Intelligent rising over 13%. Additionally, Chinese brokerage (core stocks), photovoltaic stocks, gold stocks, and insurance stocks declined.

Individual Stock Dynamics

CATHAY PAC AIR (00293.HK): Passenger volume in May increased by 17% year-on-year, and available seat kilometers increased by 10% year-on-year; cumulative passenger volume for the first five months increased by 19% year-on-year.

JACOBSON PHARMA (02633.HK): Released annual results for the year ending March 31, 2026, with revenue of HKD 1.569 billion, a year-on-year decrease of 0.47%; net profit of HKD 302 million, a year-on-year increase of 0.26%.

SAFETY GODOWN (00237.HK): Released annual results for the year ending March 31, 2026, with revenue of HKD 160 million, a year-on-year decrease of 9.67%; loss of HKD 129 million, a year-on-year narrowing of 51.59%.

YAU LEE HOLD (00406.HK): Announced annual results for the year ending March 31, 2026, with revenue of approximately HKD 10.922 billion, a year-on-year increase of 13.5%; loss of approximately HKD 204 million, a year-on-year increase of 106.07%. Mainly due to increased operating expenses.

Xing Sheng Chuang Jian (00896.HK): Expected to incur a loss between HKD 880 million and HKD 900 million for the year ending March 31, 2026. Mainly due to asset sales and property revaluation.

Nobikang (02635.HK): Subsidiary Shaanxi Huibo received a capital increase of HKD 40 million, focusing on smart airport business.

China Biologic Products (01177.HK): The new drug application for Vitreco's monoclonal antibody "CLDN18.2 ADC" has been accepted.

Gu Sheng Tang (02273.HK): Subsidiary acquired 100% equity of SANTE CLINICS and SANTE TCM, and 90% equity of Tianjin Bai Nian Ren Yi Tang Nanjing Panda Electronics Co., Ltd. (00553.HK): Subsidiary subscribes to a total of HKD 160 million structured deposit products.

Xinxing Group (01170.HK): Subsidiary plans to sell Zhuhai property for HKD 50 million.

Tencent Holdings (00700.HK): Spent HKD 500.7 million to repurchase 1.19 million shares, with repurchase prices ranging from HKD 413.6 to HKD 431.2.

Xiaomi Group-W (01810.HK): Spent approximately HKD 193 million to repurchase 8.44 million shares, with repurchase prices ranging from HKD 22.58 to HKD 23.18.

Xintian Green Energy (00956.HK): Received an increase of 10.391 million shares from Guofu Fund.

Institutional Strategies

CITIC Securities: In the short term, Hong Kong stocks are impacted by multiple liquidity factors, including the hawkish stance of the Federal Reserve, passive index rebalancing, and a small peak in unlocks this year. After the negative factors are digested, the market is expected to return to a basic perception of cost-effectiveness.

Guojin Securities: With overseas investment and financing warming up, MNC innovation enthusiasm continues. Under a marginally loose liquidity environment, expectations for investment and financing in the biopharmaceutical (core stocks) industry continue to rise, and market risk appetite has significantly recovered. Looking ahead to 2026, the revenue guidance of leading overseas CXO companies remains stable with slight growth, coupled with a gradual warming of global biopharmaceutical investment and financing and steady recovery in demand for innovative drug research and development, the industry's prosperity is expected to continue its upward trend, further enhancing growth certainty.

UBS: The global model market will increasingly stratify. Although cutting-edge models may still maintain pricing premiums in complex, high-value tasks, more cost-effective models may be more widely adopted in high-volume, ROI-sensitive workloads, providing long-term opportunities for Chinese models to gain global market share, similar to how Chinese companies have successfully achieved global expansion in electric vehicles, smartphones, and home appliances (core stocks) in other (core stocks) industries.

CITIC Securities: Emphasizes the high growth catalyst for e-commerce express profits in the second quarter of 2026, with quarterly profit growth expected to further increase. Anticipates policies such as "boosting consumption more vigorously" and more proactive exploration of business flow to drive incremental growth, with express volume expected to accelerate in the second half of the year, maintaining an annual growth rate of 8%. In addition to price increases, attention should be paid to the differentiation of cost reduction capabilities. The "anti-involution" does not change the competitive differentiation among express companies, and narrowing price differences may drive more competitive express leaders to achieve scale effects. At the same time, AI applications are expected to bring differentiation in volume and cost reduction capabilities, with competitive advantages likely to continue to expand. Under the uncertain external policy environment, the importance of excellent express leaders solidifying their network competitiveness to create alpha is marginally increasing. Currently, the valuations of express leaders are highly attractive, and it is recommended to strategically position.

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