Hong Kong stocks closed (04.01) | The Hang Seng Index rose 0.38%, pharmaceutical stocks performed strongly, and Xiaomi Group-W plummeted in the afternoon, falling over 5%

According to the Zhitong Finance APP, Trump's "reciprocal tariffs" are about to be implemented, and the three major indices of the Hong Kong stock market rose in early trading, with the Hang Seng Index rising more than 2% at one point, but the gains significantly narrowed in the afternoon. By the close, the Hang Seng Index rose 0.38% or 87.26 points, closing at 23,206.84 points, with a total turnover of HKD 250.231 billion; the Hang Seng China Enterprises Index rose 0.24%, closing at 8,537.34 points; the Hang Seng Tech Index rose 0.23%, closing at 5,407.38 points.

Jiaoyun International stated that global uncertainty is rising, and the Hong Kong stock market is waiting for opportunities while maintaining a defensive stance. The bank pointed out that as April approaches, subsequent data verification of fundamentals such as consumption and real estate, as well as external impacts like tariffs, will become the focus of the market. This will also be key to whether the Central Political Bureau meeting at the end of April will release further policy stimulus signals.

Blue Chip Performance

Xiaomi Group-W (01810) plummeted in the afternoon. By the close, it fell 5.49%, closing at HKD 46.5, with a turnover of HKD 28.081 billion, dragging the Hang Seng Index down by 78.78 points. In response to the rumored Xiaomi SU7 collision and explosion incident, a spokesperson for Xiaomi officially released details of the incident today. The spokesperson stated that a special team was established immediately, and on the 30th, they rushed to Tongling, actively cooperating with the investigation and evidence collection under police guidance, and submitted the vehicle driving data and system operation information to the police on the evening of the 31st. Xiaomi stated that it will continue to fully cooperate with the police and strictly follow the investigation results to ensure that the handling of the incident is open and transparent.

In other blue chip stocks, CSPC PHARMA (01093) rose 10.93%, closing at HKD 5.48, contributing 7.33 points to the Hang Seng Index; Wharf Real Estate Investment Company (01997) rose 4.86%, closing at HKD 19.84, contributing 2.59 points to the Hang Seng Index; Tingyi (Cayman Islands) Holding Corp (00322) fell 4.59%, closing at HKD 12.46, dragging the Hang Seng Index down by 1.91 points; China Overseas Land & Investment Ltd. (00688) fell 4.46%, closing at HKD 13.28, dragging the Hang Seng Index down by 3.92 points.

Popular Sectors

On the market, large technology stocks showed mixed performance, with Xiaomi plummeting over 5% in the afternoon, Kuaishou rising over 3%, and Tencent, Alibaba, and Meituan all rising over 1%. Domestic innovative drugs are gradually entering a harvest period, with market expectations for the optimization of centralized procurement policies, leading to a surge in biopharmaceutical stocks; newly listed stocks performed strongly, with Yuejiang soaring over 20% at the close; supply concerns pushed up oil prices, with the "three oil giants" generally rising; water stocks, coal stocks, and power stocks mostly showed gains. On the other hand, chip stocks continued to decline, with SMIC falling nearly 4%; home appliance stocks and domestic real estate stocks showed weak performance.

1. Pharmaceutical stocks performed strongly. By the close, Yiming Anke-B (01541) rose 19.86%, closing at HKD 7; KANGFENG BIO (09926) rose 12.86%, closing at HKD 86; Rongchang Bio (09995) rose 10.34%, closing at HKD 26.15; Ascentage Pharma-B (06855) rose 5.9%, closing at HKD 44.85.

On March 26, the National Healthcare Security Administration held a meeting to optimize the pharmaceutical centralized procurement work, and the market expects that the meeting may advance the optimization details of drug centralized procurement. According to reports from the Science and Technology Innovation Board Daily, a screenshot of a notice regarding the optimization of pharmaceutical centralized procurement work has recently circulated in the industry, and a draft document titled "Further Optimization of Drug Centralized Procurement Policy (Draft for Comments)" has also been widely discussed Minsheng Securities' recent research report points out that China's local pharmaceutical innovation is gradually entering a harvest period, with the internationalization process continuing to accelerate. The report remains optimistic about the main line of pharmaceutical innovation, while the fundamentals of the pharmaceutical sector continue to recover upward, and it also favors the main line of pharmaceutical consumption.

In addition, the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council recently published a signed article in the "Democracy and Rule of Law" weekly, stating the need to accelerate the development of strategic emerging industries. It emphasizes a problem-oriented and goal-oriented approach, highlighting differentiated policies. For industries with relatively weak foundations, such as biomedicine, it encourages state-owned enterprises to use various methods such as mergers and acquisitions, equity investments, and industrial funds to accelerate the formation of industrial influence.

2. Oil stocks generally rose. As of the close, CNOOC (00883) rose 2.7% to HKD 19.02; CNOOC Services (02883) rose 2.5% to HKD 6.57; PetroChina (00857) rose 2.07% to HKD 6.42; Sinopec (00386) rose 0.24% to HKD 4.11.

U.S. President Trump stated on Monday that he demands Iran to reach a nuclear agreement as soon as possible and mentioned considering new sanctions on Russian energy exports. These remarks have raised investor concerns about escalating geopolitical conflicts in the Middle East and Eastern Europe, leading to a rise in international oil prices overnight. CITIC Securities' research report indicates that, considering multiple factors such as recent U.S. sanctions on Iran and Venezuela and geopolitical disturbances, the Brent crude oil price is expected to rise slightly to a range of USD 70-75 per barrel by 2025.

Additionally, the annual reports of the "three oil giants" for 2024 have all been released, showing that the combined net profit attributable to shareholders of the "three oil giants" exceeded RMB 352.9 billion, equivalent to a daily net profit of about RMB 970 million. Among them, PetroChina topped the profits with a net profit attributable to shareholders increasing by 2% year-on-year to RMB 164.68 billion, setting a historical high; CNOOC saw both revenue and net profit grow, with a notable net profit increase of 11.4% year-on-year to RMB 137.936 billion; Sinopec's revenue and net profit both declined due to falling prices and volumes of main products, with a net profit attributable to shareholders decreasing by 16.8% year-on-year to RMB 50.313 billion.

3. The performance of domestic property stocks was mixed. As of the close, Midea Real Estate (03990) rose 12.04% to HKD 4; R&F Properties (02777) rose 3.85% to HKD 1.08; Agile Group (03383) fell 7.41% to HKD 0.5; China Overseas Development (00688) fell 4.46% to HKD 13.28.

Data released by the China Index Academy shows that from January to March, the total sales of the top 100 real estate companies amounted to RMB 810.1 billion, a year-on-year decrease of 9.8%. In March alone, the sales of the top 100 real estate companies fell by 10.6% year-on-year. According to CRIC data, in the first quarter of 2025, the overall Chinese real estate market remained at a low level, continuing to stabilize after a decline. In March, the TOP 100 real estate companies achieved a sales turnover of RMB 317.57 billion, a month-on-month increase of 68.8% but a year-on-year decrease of 11.4%, with the monthly performance scale remaining at a historical low. Cumulatively, the top 100 real estate companies achieved a sales turnover of RMB 733.3 billion from January to March, a year-on-year decrease of 5.9% Midea Real Estate recently released its annual performance. The annual operating income reached 3.73 billion yuan, a year-on-year increase of 33%; the core net profit attributable to the parent company from retained business reached 500 million yuan, a year-on-year increase of 25%. During the reporting period, Midea Real Estate declared a dividend of HKD 0.27 per share for the 2024 fiscal year, with a payout ratio increased to 70%. In addition, Agile Group's 2024 revenue is approximately 43.346 billion yuan, a year-on-year increase of 0.08%; the company's loss attributable to shareholders is 17.216 billion yuan, a year-on-year increase of 24.74%. China Overseas Land & Investment achieved revenue of 185.154 billion yuan in 2024, a year-on-year decrease of 8.58%; the profit attributable to shareholders was 15.636 billion yuan, a year-on-year decrease of 38.95%.

Popular Active Stocks

1. Lao Pu Gold (06181) continues to hit new highs. As of the close, up 19.07%, reported at HKD 868.

Lao Pu Gold released its annual performance. In 2024, it achieved sales of 9.8 billion yuan, a year-on-year increase of 166%; net profit reached 1.47 billion yuan, a year-on-year increase of 254%, falling within the upper half of the performance forecast. The basic earnings per share were 9.47 yuan; it proposed a final dividend of 6.35 yuan per share, corresponding to a payout ratio of 73%, marking the first dividend since its listing. CICC is optimistic about Lao Pu Gold's continued market share acquisition in the rapidly growing high-end gold and jewelry sector.

2. Haijia Medical (06078) remained strong throughout the day. As of the close, up 9.97%, reported at HKD 14.78.

According to the latest data from the Hong Kong Stock Exchange, on March 28 and March 31, Haijia Medical's founder, controlling shareholder, chairman, and CEO Zhu Yiwen increased his holdings again, totaling 615,400 shares. The company stated that since its listing, Mr. Zhu has increased his holdings in the secondary market 20 times and has never reduced his holdings, showing confidence in the company's future development.

3. XPeng Motors-W (09868) performed brilliantly. As of the close, up 5.58%, reported at HKD 83.2.

XPeng Motors announced its latest delivery results this morning. In March 2025, XPeng Motors delivered a total of 33,205 new cars, a year-on-year increase of 268%, with delivery volumes exceeding 30,000 units for five consecutive months. The XPeng MONA M03 has delivered over 15,000 units for four consecutive months, continuously breaking the delivery record for new energy vehicles. In the first quarter of 2025, XPeng Motors cumulatively delivered a total of 94,008 new cars, a year-on-year increase of 331%, and a quarter-on-quarter increase of 2.7%, setting a new historical high.

4. Pop Mart (09992) hits a new peak again. As of the close, up 4.98%, reported at HKD 164.3.

CMB International released a research report stating that Pop Mart's financial performance last year exceeded expectations, with revenue increasing by 106.9% year-on-year, gross profit margin rising to 66.8%, and net profit margin at 25.4%. The payout ratio is 35%, consistent with 2023. The firm maintains a "Buy" rating, raising the target price to HKD 176. Looking ahead to this year, management is confident in achieving a revenue scale exceeding 20 billion yuan. Among them, the overseas market will continue to be a strategic focus, with the revenue proportion expected to increase to 50%, planning to open 100 stores