Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Market Commentary> HSI Fails to Hold 26,000; Alibaba, JD.com and Pharma Stocks Sought After
Recommend 4 Positive 4 Negative 4 |
||||
|
||||
|
US President Donald Trump said the war with Iran has ended and there are no plans to extend the ceasefire agreement, with negotiations between the two sides possibly resuming in Pakistan within two days. The HSI opened higher today (15th) but pared gains later, failing to hold the 26,000 level. On hopes that the US and Iran may reach an agreement, the DJIA and Nasdaq rose 0.7% and 2% overnight (14th). At the time of writing, the US 2-year Treasury yield rose to 3.755%, while the US 10-year Treasury yield stood at 4.256%, and the US Dollar Index fell to 98.15. DJIA futures were last down 9 points or 0.02%, while Nasdaq futures rose 38 points or 0.15%. The Shanghai Composite Index edged up by less than 1 point to close at 4,027. The Shenzhen Component Index fell 1% and the ChiNext Index dropped 1.2%. Total turnover on the Shanghai and Shenzhen markets amounted to nearly RMB2.415 trillion. The HSI opened 295 points higher and once climbed 344 points to a peak of 26,216. It closed up 75 points or 0.3% at 25,947, the days trough. The HSCEI rose 46 points or 0.5% to 8,718, while the HSTECH gained 59 points or 1.2% to 4,911. Total market turnover reached HKD245.588 billion. Southbound trading turnover totaled HKD106.462 billion, with net inflow of HKD4.221 billion today (net outflow of HKD2.017 billion in the previous trading day). Hong Kong Exchanges and Clearing (00388.HK) rose 1.7%. Yangtze Optical Fibre and Cable (06869.HK) slid nearly 5% to HKD205.6, with turnover of HKD4.11 billion. AI-related stocks Zhipu (02513.HK) and MiniMax (00100.HK) retreated 8.5% and 10.9%, while Unisound (09678.HK) dropped 11.2%. CATL (03750.HK) fell 0.7% to HKD655.5. Tianqi Lithium (09696.HK) and Ganfeng Lithium (01772.HK) both declined nearly 5%. Alibaba Supported; JD.com Sought After Tech stocks broadly advanced. Baidu-SW (09888.HK) rose 3.1% to HKD114.5. Tencent (00700.HK) gained 1.2% to HKD499, while Meituan-W (03690.HK) and NetEase-S (09999.HK) each climbed 1.4%. Alibaba-W (09988.HK) rebounded nearly 3.3% to HKD128.6, with turnover of HKD12.319 billion. Alibaba Cloud announced that starting July 15 this year, it will adjust pricing for the Elasticity 95 feature under DDoS Native Protection 2.0 (annual/monthly subscription), DDoS High Defense (Mainland China), and DDoS High Defense (Non-Mainland China). JD.com (09618.HK) jumped 4.6% to HKD120.7, with turnover of HKD2.839 billion. JPM released a research report reinstating an Overweight rating on JD.com with a TP of HKD148. The broker believes investors should focus on upside earnings risks for 2026 rather than the downside risks faced by many Chinese internet peers. It noted that the 4Q results last year and 2026 guidance demonstrated resilience in core operations, the most aggressive investment phase in instant retail has passed, and international expansion should be more prudent. JPM raised its 2026 and 2027 revenue forecasts by 1% and 2%, and lifted adjusted net profit forecasts by 13% and 26%, which are 17% and 7% above market consensus, respectively, mainly reflecting lower-than-expected losses in instant retail. 1,100 Stocks Advance; Pharma Shares Rally Market breadth in Hong Kong slightly weakened. The ratio of advancers to decliners on the Main Board was 27 to 24 (32 to 19 in the previous session), with 1,141 stocks rising (up 3.07%). Among HSI constituents, 48 stocks rose while 40 fell, giving a ratio of 53 to 44 (68 to 32 in the previous session). Short selling amounted to HKD37.954 billion, accounting for 18.766% of the HKD202.254 billion turnover of securities eligible for short selling. Mainland authorities issued guidelines to improve the drug pricing formation mechanism and optimize the pricing mechanism for innovative drugs and other first-launch products. Pharma stocks advanced. Sino Biopharmaceutical (01177.HK), 3SBio (01530.HK), Kelun-Biotech (06990.HK), Innovent Biologics (01801.HK), Akeso (09926.HK) and Junshi Biosciences (01877.HK) rose between 5.8% and 8.2%. Duality Biotherapeutics (09606.HK) and Rongchang Biotech (09995.HK) surged 10.8% and 9.1%, respectively. Citi said the State Council of China issued the "Opinions on Reforming the Drug Pricing Formation Mechanism", describing it as a landmark national guidance document that continues a series of innovation-encouraging policies. The broker considers it the most significant central government drug pricing guidance since 2015. The policy aims to allow the market to play a leading role in drug pricing. Citi views this as a clear commitment by the government to foster a strong and globally competitive domestic pharmaceutical industry. It believes major innovative pharmaceutical and biotech companies will benefit, including Hengrui Pharmaceuticals (01276.HK), CSPC Pharmaceutical (01093.HK), Innovent Biologics and other multinational companies with substantial innovative drug sales in China. (wl/da) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
