Hong Kong's three major indices closed higher at midday on August 20. The Hang Seng Index rose 291.25 points or 1.14% to 25,786.32; the Hang Seng China Enterprises Index gained 1.42% to 8,591.65; and the Hang Seng Tech Index advanced 1.54% to 4,754.13. Half-day turnover reached approximately HK$144.1 billion.

On the market front, Moderna's cancer vaccine breakthrough ignited the mRNA sector, with the Hang Seng Innovative Drug Index skyrocketing over 8%. Everest Medicines soared over 68%, CanSino Biologics surged more than 51%, and 3D Medicines at one point spiked 130%. New energy vehicle stocks broadly advanced on rural adoption policy support, with Li Auto jumping nearly 6%. Major tech names also firmed, with Xiaomi climbing close to 4%. On the flip side, Kuaishou tumbled nearly 10% after its earnings release.

mRNA stocks erupt: Everest Medicines +68%, CanSino +51%

At the midday break, Everest Medicines (01952.HK) surged over 68% to HK$40.00; CanSino Biologics (06185.HK) soared more than 51% to HK$35.32; 3D Medicines (01244.HK) rallied over 55% to HK$3.39, having spiked as much as 130% intraday; and Genscript Biotech (01548.HK) gained nearly 15%. The Hang Seng Innovative Drug Index surged over 8%, while the Hang Seng Biotech Index jumped nearly 7%. The catalyst: Moderna reported a breakthrough with its mRNA cancer vaccine, which demonstrated significant efficacy in clinical trials, triggering a broad-based rally across Hong Kong's innovative drug sector.

Kuaishou tumbles nearly 10% post-earnings on broker downgrades

By midday, Kuaishou (01024.HK) slumped nearly 10% to HK$34.12, with half-day turnover exceeding HK$5.8 billion. The short-video platform reported Q2 adjusted net profit of RMB3.913 billion, down 30.3% year-on-year. Daiwa downgraded the stock to Hold and slashed its target price from HK$72 to HK$40, while Morgan Stanley and Citi also lowered their ratings.

Among major tech names, Xiaomi Corp (01810.HK) rose nearly 4% to HK$28.44 after Q2 revenue reached RMB108.9 billion, beating expectations. Baidu (09888.HK) gained over 3%. In the new energy vehicle space, Li Auto (02015.HK) climbed nearly 6% after nine government departments including the Ministry of Commerce issued policies to support new energy vehicle adoption in rural areas. Elsewhere, Kingsoft Cloud (03896.HK) jumped nearly 9% as Q2 revenue hit a record high of RMB3.07 billion. Yixin Group (02858.HK) advanced nearly 11% after interim profit rose 28%. Zhaojin Mining Industry (01818.HK) surged over 8%.