Hong Kong Stock Market Closing Review: Hang Seng Index surged 2.59% in the afternoon, with technology, finance, and other weighted sectors rising. Mainland real estate stocks remained strong throughout the day

Hong Kong stocks continued to rise in the afternoon, with the Hang Seng Index closing up significantly by 2.59%, gaining 461 points and returning above the 18,000 mark. The China Enterprises Index and the Hang Seng TECH Index also rose by 2.52% and 2.31% respectively, marking the second consecutive day of significant gains, as market bullish sentiment quickly intensified.

On the market front, the rise in large-cap technology stocks, mainland banking stocks, mainland insurance stocks, and stocks with names starting with "China" helped boost the market. Meituan and JD.com both rose by nearly 5%, while leading stocks such as China Merchants Bank, CITIC Bank, and Ping An Insurance showed strong performance. The effects of policies have been reflected in trading, with institutions optimistic about continued recovery in the real estate sector, leading to a strong performance by mainland real estate stocks throughout the day. As the pig cycle warms up, pork-related stocks saw a significant rise in the afternoon, with leading stock Wanzhou International leading the gains. Stocks in the home appliance, catering, biotechnology, mobile gaming, heavy machinery, automotive, aviation, and telecommunications sectors all rose.

On the other hand, has the turning point for freight rates arrived? Industry insiders say that European shipping routes are still slightly tight, and there may be variables in the peak season for air transport. As a result, port and shipping stocks moved against the trend, with China COSCO Shipping seeing a third consecutive day of decline. Gold prices broke through the $2400 mark, causing gold stocks to open high but close lower, with Shandong Gold Mining Co., Ltd. falling by 2.59%. Most semiconductor chip stocks and Apple concept stocks, which were strong yesterday, also saw declines.

Specifically

Sports goods stocks collectively rose, with Li Ning up by 7%, Anta Sports up by over 6%, and Xtep International, 361 Degrees International, and others following suit.

According to a research report from CITIC Securities, as the supply chain gradually recovers, inventory issues for major sports brands are gradually being resolved. From the perspective of upstream suppliers, with the intensification of industry product development competition, top shoe and apparel suppliers with high quality and outstanding innovation capabilities will continue to benefit. It is recommended to focus on excellent manufacturing companies with high-quality customer structures, continuous improvement in orders, attractive valuations, and long-term growth potential.

Mainland real estate stocks surged significantly, with SHIMAO GROUP up by over 14%, SEAZEN up by over 9%, Country Garden Holdings up by over 8%, and others such as Greenland Holdings, China Jinmao, Sunac China, and Oceanwide Holdings up by over 5%. Sunac China, Vanke, China Resources Land, and others followed suit.

On the news front, the year-on-year decline in sales of the top 100 real estate companies in June narrowed, while the month-on-month growth expanded, with sales of central state-owned enterprises returning to positive growth in June. Resale heat in first-tier cities has rebounded, with Shanghai's daily resale transactions breaking through a thousand units, reaching a new high in daily transaction volume in the past 3 years.

Holiday concept stocks all rose, with Meituan rising by nearly 5%, Huazhu Group, Haidilao, Zhou Hei Ya up by over 4%, Fosun Tourism & Culture, Tsingtao Brewery, and others following suit.

Biopharmaceutical concept stocks showed strength, with CanSino Biologics, Novogene Corporation up by over 5%, Kangmei Pharmaceutical, BeiGene, Zai Lab, GenScript Biotech, Rongchang Biotech up by over 4%, and Junshi Biosciences, WuXi AppTec, and others following suit.

Guotai Junan Securities stated that the "Implementation Plan to Support the Development of Innovative Drugs Across the Entire Chain" is expected to be finalized soon. Coupled with the innovative drug sector being at a historically relative low point, multiple catalysts such as the ESMO Congress, WCLC Congress, medical insurance negotiations, and expectations for the overseas expansion of innovative drugs in the second half of the year, the innovative drug sector is expected to strengthen Port and Shipping Stocks continued to decline, with COSCO Shipping Energy, COSCO Shipping Holdings both falling by over 3%, along with COSCO Shipping Ports, Orient Overseas International, and China Merchants Port following suit.

On the news front, according to Hamas sources, Hamas has preliminarily approved a proposal for a ceasefire and exchange of detainees in the Gaza Strip, and has agreed to continue negotiations with Israel on matters such as the exchange of detainees during the 16-day first phase of the Gaza Strip ceasefire.

Gold Stocks mostly fell, with Shandong Gold, Zhaojin Mining, and China Gold International dropping by over 2%, while Zijin Mining followed suit.

Individual Stock Performance

Li Ning surged over 7%, closing at HKD 16.22 per share, with a latest market capitalization of HKD 41.92 billion.

NingXing Securities pointed out that with the Olympics approaching, sports footwear and apparel consumption is expected to rise. With the Paris Olympics set to kick off on July 26, major fashion and sports brands are starting to heat up early. As a globally anticipated event, the Olympic effect may bring sustained dividends to brands.

Cheung Kong Infrastructure rose over 6%, closing at HKD 49.25 per share, reaching a 5-year high in stock price, with a latest market capitalization of HKD 124.091 billion.

On the news front, Cheung Kong Infrastructure announced after yesterday's market close that the company is constantly considering and evaluating different strategic opportunities to create maximum value for shareholders. One of the opportunities currently under consideration is a potential secondary and additional listing of the company's shares on overseas stock exchanges (such as the London Stock Exchange) without any fundraising.

Today, there was a net inflow of HKD 2.726 billion in southbound funds, with a net inflow of HKD 1.3 billion through Stock Connect (Shanghai) and a net inflow of HKD 1.426 billion through Stock Connect (Shenzhen).

CITIC Securities expects the Hang Seng Index to maintain range-bound volatility in the short term, with a focus on profit-taking and bargain-hunting. Strategically, high-dividend-paying central state-owned enterprises in energy, telecommunications, internal banks, and utilities remain key allocations. Bullish on semiconductors, consumer electronics, food and beverage, leading internet companies, as well as some copper, gold, and other resource stocks benefiting from rising rate cut expectations