HK Stocks Close | All Three Major Indices Adjust Collectively, Innovative Drugs and Gold Buck the Trend to Strengthen

The three major Hong Kong stock indices weakened collectively. By the close, the Hang Seng Index fell 0.08% to 24,162.87, the Tech Index dropped 0.76% to 5,392.19, and the HSCEI declined 0.15% to 8,767.36.

Note: Hang Seng Index performance

From the above, the Hang Seng Index once dipped to 24,013.95 in the afternoon, then continued its fluctuating trend. The Tech Index and HSCEI showed similar movements during the same period.

Today's market

Market-wise, pharmaceutical, gold, and banking stocks strengthened, while new consumer and semiconductor-related stocks weakened.

Innovative Drugs Lead Gains, Blue Chips Hit New Highs

By the close, 3SBio (01530.HK), China Medical Group (08225.HK), and Luye Pharma (02186.HK) rose 9.84%, 8.33%, and 4.39% respectively.

Note: Pharmaceutical stocks performance

3SBio led the sector's gains and briefly hit a record high during the session. This followed its overseas licensing deal - the company granted Pfizer global rights (excluding mainland China) for its self-developed PD-1/VEGF bispecific antibody SSGJ-707. The agreement includes a non-refundable $1.25 billion upfront payment, up to $4.8 billion in potential milestone payments, and double-digit percentage sales royalties.

The market generally views Hong Kong as the "springboard for Chinese innovative drugmakers going global", potentially entering a historic investment opportunity window.

Gold Rally Extends, Silver Poised for Catch-Up

By the close, China Silver Group (00815.HK), Tongguan Gold (00340.HK), and China Gold International (02099.HK) advanced 17.65%, 7.09%, and 4.50% respectively.

Note: Gold stocks performance

China Securities noted silver twice broke through the key $35.5/oz resistance level weekly. Against a five-year supply-demand gap, tariff policy easing triggered gold-silver ratio correction, with silver's catch-up momentum expected to continue. COMEX silver futures open interest rose 12% weekly, indicating accelerated institutional positioning in precious metals.

Banking Stocks Show Steady Gains

By the close, Qingdao Bank (03866.HK), Chongqing Bank (01963.HK), and Minsheng Bank (01988.HK) climbed 6.80%, 2.95%, and 2.55% respectively.

Note: Performance of banking stocks

GF Securities pointed out that under the condition where the central bank safeguards the stability of the interbank market, the liquidity pressure in the bond market has decreased, and concerns about rising interbank interest rates have been eliminated. It is expected that the intensity of monetary policy and credit efforts to stabilize growth will increase in June and the second half of the year (H2).

Deep correction in new consumption stocks, valuation pressure amidst upcoming lock-up expiry

At the close, Guming (01364.HK), BLK (00325.HK), and Cha Baidao (02555.HK) fell by 6.69%, 6.21%, and 5.60%, respectively.

Note: Performance of new consumption concept stocks

In terms of news, the adjustment pressure mainly comes from two aspects: firstly, the previous valuations have overextended growth prospects; secondly, the lock-up expiry is approaching, with Guming set to have 2.23 billion locked-up shares released on August 12, accounting for over 40% of the float. The consumer sector exhibits a clear rotation from high to low valuations, with capital shifting towards the pharmaceutical and financial sectors, which offer greater safety margins.

Semiconductor stocks under pressure and volatile, with short-term fluctuations likely to persist

At the close, Shanghai Fudan (01385.HK), Hua Hong Semiconductor (01347.HK), and SMIC (00981.HK) fell by 4.36%, 3.08%, and 1.89%, respectively.

Note: Performance of semiconductor stocks

In terms of news, the impact of SMIC's Q1 yield fluctuations may persist for 4-5 months, primarily due to insufficient process stability during the equipment verification period; Hua Hong Semiconductor's Q2 revenue guidance is 3-5% below market expectations. Donghai Securities believes that despite tariff disruptions in the industry in May, the trend of improving supply and demand remains unchanged. It suggests focusing on leading companies in niche sectors experiencing accelerated localization substitution.

Individual stock movements

METALIGHT falls over 30% on its debut, with international placement only 2.49 times subscribed

METALIGHT (02605.HK) fell by 30.26% to close at HK$6.80. Notably, on the trading day before its listing, the stock already showed a trend of moving downwards after a higher opening in the grey market. In terms of subscription, METALIGHT was 274.44 times subscribed in the public offering phase, but only 2.49 times subscribed in the international placement phase.

China Rare Earth surges over 13% as rare earth exports are somewhat relaxed

China Rare Earth (00769.HK) rose by 13.24% to close at HK$0.77. In terms of news, on June 7, a spokesperson for the Ministry of Commerce answered questions from reporters regarding export control measures on medium-heavy rare earth, stating that implementing export controls on rare earths is in line with international practices, and China has approved a certain number of compliant applications in accordance with the law.

Guotai Haitong Securities previously pointed out that after China implemented export controls on medium-heavy rare earth, overseas prices for medium-heavy rare earth have surged, rapidly widening the price spread between domestic and overseas markets. Domestic export licenses have been gradually issued, and the bank believes that the overseas price increases are expected to gradually transmit to the domestic market.