HK Stocks Close | Sino-US Economic and Trade Positives Boost Three Major Indices, Internet and Consumer Electronics Stocks Lead the Performance

Boosted by the positive news from the China-US economic and trade talks, the three major indices of Hong Kong stocks strengthened across the board. At the close, the Hang Seng Index rose by 2.98% to close at 23,549.46 points; the Hang Seng Tech Index rose by 5.16% to close at 5,447.35 points; and the HSCEI rose by 3.01% to close at 8,559.23 points.

Note: Performance of the Hang Seng Index and the Hang Seng Tech Index

Joint statement on China-US economic and trade talks in Geneva boosts market confidence

The joint statement on China-US economic and trade talks in Geneva was released on the website of the Ministry of Commerce. According to the statement, China will reduce tariffs on US goods from 125% to 10% within 90 days, while the US will reduce tariffs on Chinese goods from 145% to 30% within the same period.

Spurred by this news, the Hang Seng Tech Index once surged over 6% in the final trading session today, while the Hang Seng Index also rose over 3% during the same period.

Short-selling data in the market

Today's market

In terms of market performance, stocks in the technology, consumer electronics, military, automotive, and shipping sectors led the gains, while pharmaceutical and gold stocks declined.

Technology stocks boosted by positive news

At the close, Alibaba-W (09988.HK), Baidu Group-SW (09888.HK), and Tencent Holdings (00700.HK) rose by 6.15%, 5.03%, and 4.63%, respectively.

Note: Performance of technology stocks

In terms of news, technology stocks were boosted by the positive news from the China-US meeting. Similarly, consumer electronics stocks also strengthened due to this news. At the close, Cowell E Holdings (01415.HK), AAC Technologies Holdings (02018.HK), and Sunny Optical Technology (Group) (02382.HK) rose by 18.45%, 15.37%, and 14.83%, respectively.

Note: Performance of consumer electronics stocks

Military stocks continue to rise

At the close, AVIC Aero-Engine Controls (02357.HK), CSSC Offshore & Marine Engineering (Group) (00317.HK), and Continental Aviation Technology Holdings (00232.HK) rose by 7.75%, 4.21%, and 2.68%, respectively.

Note: Performance of military stocks

In terms of news, the ceasefire agreement between India and Pakistan officially took effect on the afternoon of May 10 (local time). During the conflict, the Pakistan Air Force achieved significant success. It is reported that Pakistan is a major exporter of weapons and equipment to China.

In a previous research report, Kaiyuan Securities stated that the rebalancing of global military power will bring more uncertainties to the capital market, and the "geopolitical risk premium" of assets may lead to a revaluation of the risk-averse attributes of military stocks.

Most auto stocks strengthened

By the close, XPeng Motors-W (09868.HK), NIO-SW (09866.HK), and Li Auto-W (02015.HK) rose by 10.64%, 7.69%, and 7.23%, respectively.

Note: Performance of auto stocks

In terms of news, in addition to the positive impact of the China-US talks mentioned at the beginning, data released by the China Association of Automobile Manufacturers (CAAM) showed that for the first four months of this year, domestic automobile production and sales both exceeded 10 million units for the first time in history. During this period, automobile production and sales reached 10.175 million units and 10.06 million units, respectively, representing year-on-year increases of 12.9% and 10.8%.

For new energy vehicles (NEVs), production and sales reached 4.429 million units and 4.3 million units, respectively, in the first four months, with year-on-year increases of 48.3% and 46.2%. NEV sales accounted for 42.7% of total new vehicle sales.

COSCO Shipping Holdings led gains in shipping stocks

By the close, COSCO Shipping Holdings (01919.HK), COSCO Shipping Development (02866.HK), and Orient Overseas International (00316.HK) rose by 8.52%, 5.43%, and 4.78%, respectively.

Note: Performance of shipping stocks

In terms of news, the main contract of SCFIS(Europe) futures experienced abnormal movements in the final trading session today, surging rapidly and hitting the daily limit, closing up 16%.

Pharmaceutical stocks faced downward pressure due to negative news

By the close, Alphamab Oncology-B (09966.HK), BeiGene (06160.HK), and Harbour BioMed-B (02142.HK) fell by 12.81%, 8.97%, and 8.79%, respectively.

Note: Performance of pharmaceutical stocks

In terms of news, US President Trump stated that he would sign an executive order on Monday to immediately reduce prescription drug and medicine prices in the US by 30% to 80%.

Gold stocks extended recent losses

By the close, Lingbao Gold (03330.HK), Chifeng Jilong Gold Mining (06693.HK), and Zhaojin Mining (01818.HK) fell by 11.23%, 11.07%, and 7.55%, respectively.

Note: Performance of gold stocks

In terms of news, this morning, after China announced that the China-US meeting had reached "important consensus," international gold prices continued to pull back. As of press time, international gold prices fell 3.44% to $3,228.8 per ounce.

Individual stock movements

Melco International Development rose nearly 7%; subsidiary Melco Resorts' adjusted EBITDA increased 14% in Q1

Melco International Development (00200.HK) rose 6.89% to close at HK$4.03.In terms of news, the company announced recently that its subsidiary, Melco Resorts & Entertainment, reported Q1 results with total operating revenue of US$1.23 billion, up 11% YoY, mainly due to improved performance in all gaming and non-gaming operations.

JD.com Inc. rises over 6%, set to release Q1 results tomorrow

JD.com Inc.-SW (09618.HK) rose 6.39% to close at HK$139.9. In terms of news, the company will release its Q1 results after the Hong Kong stock market closes on the 13th. Tianfeng Securities expects revenue in Q1 to increase 11.9% YoY to RMB291 billion.