On June 24, Hong Kong stocks fluctuated at low levels in the morning, and after a collective rise in the afternoon, the indices experienced narrow fluctuations. By the close, the Hang Seng Index rose by 75.9 points, an increase of 0.33%, closing at 23,412.18 points; the Hang Seng TECH Index rose by 79.8 points, an increase of 1.81%, closing at 4,479.02 points; the National Enterprises Index rose by 5.61 points, an increase of 0.07%, closing at 7,764.97 points; the Red Chip Index fell by 30.52 points, a decrease of 0.78%, closing at 3,858.16 points.

Large technology stocks showed mixed performance, with Alibaba rising by 0.45%, Tencent Holdings rising by 3.38%, JD.com falling by 1.65%, Xiaomi Group rising by 1.5%, NetEase falling by 0.16%, Meituan falling by 2.66%, Kuaishou falling by 0.69%, and Bilibili rising by 1.29%. Chip stocks rebounded collectively, with Hua Hong Semiconductor rising over 15%, SMIC rising nearly 9%, and Zhaoyi Innovation rising over 5%. The pharmaceutical (core stocks) sector strengthened, with WuXi AppTec rising over 8%, and WuXi Biologics rising over 4%. The lithium battery (core stocks) sector also strengthened, with Longpan Technology rising over 3%. Today, two new stocks were listed, with MICOT PHARMA rising 102% on its first day and XianGong Intelligent rising 4%.

Individual Stock Dynamics

Cathay Pacific Airways (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 decrease of 0.47% year-on-year; net profit of HKD 302 million, an increase of 0.26% year-on-year.

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

YAU LEE HOLD (00406.HK): Announced annual results for the year ending March 31, 2026, with revenue of approximately HKD 10.922 billion, an increase of 13.5% year-on-year; loss of approximately HKD 204 million, widening by 106.07% year-on-year, 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): Application for the new drug listing of Weike Tuobai 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.

Xiaomi Corporation-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 in holdings 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 within the year. After these negative factors are digested, the market is expected to return to a basic perception of cost-effectiveness.

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

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-usage, 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 industries.

CITIC Securities: Emphasizes the catalyst of high growth in 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" to empower, coupled with more proactive exploration of business flow increments, express volume may accelerate in the second half of the year, with an expected annual volume growth rate of 8%. Beyond price increases, attention to the differentiation of cost reduction capabilities, "anti-involution" does not change the competitive differentiation among express companies, narrowing price differences may drive more competitive express leaders to achieve scale effects. At the same time, AI applications bring differentiation in volume and cost reduction capabilities, and competitive advantages are expected 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 extremely attractive, suggesting to seize the opportunity for layout.

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