Hong Kong's three major stock indices trended upward in a choppy session on Monday, with the Hang Seng Index reclaiming the 25,000-point level. By the close, the Hang Seng Index rose 1.18%, or 291.93 points, to finish at 25,042.71, with total turnover reaching HK$202.731 billion. The Hang Seng China Enterprises Index advanced 1.39% to 8,339.63, while the Hang Seng Tech Index edged up 0.40% to 4,423.29.
Huatai Securities noted that while interest rate volatility has eased, point-based risks remain unresolved and earnings expectations have yet to recover. The Hong Kong market may see a short-term technical rebound, but both its duration and magnitude warrant further observation. Following the FOMC decision, implied bearish sentiment and negative gamma fluctuations in the options market have cooled, potentially offering some technical improvement. However, from a trend perspective, the tightening of overseas liquidity and the subdued domestic fundamental landscape facing Hong Kong stocks have not reversed.
Among blue-chip performers, SBP Group (01177) led the gainers, closing up 8.23% at HK$5.92 on turnover of HK$881 million. Daiwa issued a research note stating that during a recent healthcare industry exchange event, company management reaffirmed its unchanged guidance for double-digit year-on-year revenue growth this year, expected to be driven by both licensing income and innovative drug sales growth. Management also projected that combined innovative drug sales and licensing revenue would contribute half of total annual revenue. Other blue chips saw mixed moves, with CSPC Pharmaceutical Group (01093) jumping 7.56% to HK$9.605, Innovent Biologics (01801) climbing 6.00% to HK$102.400, and Alibaba Health Information Technology (00241) slipping 4.40% to HK$2.930.
In terms of sector performance, most tech and internet stocks advanced. Alibaba gained over 3% ahead of its 2026 Apsara Conference scheduled for September 22-24. Reports that the U.S. may relax licensing cooperation rules for pharmaceutical companies, combined with the release of the pharmaceutical industry's 15th Five-Year Plan by the Ministry of Industry and Information Technology and nine other departments, triggered a broad rally in innovative drug concept stocks. Mainland property developers strengthened in the afternoon session, while PCB concept, shipping, and shipbuilding-related stocks also traded actively. On the downside, gold stocks declined collectively after Federal Reserve officials warned that inflation remains too high, and home appliance and non-ferrous metal stocks fell broadly.
The innovative drug sector saw a comprehensive surge. By the close, Akeso (09926) rose 9.72% to HK$99.3, 3SBio (01530) gained 9.33% to HK$17.220, SBP Group (01177) advanced 8.23% to HK$5.920, and CSPC Pharmaceutical Group (01093) climbed 7.56% to HK$9.605. Reports indicated that the U.S. Treasury Department is drafting new rules on outbound investment to China, potentially allowing American pharmaceutical companies to retain most drug licensing agreement rights with Chinese partners. Earlier, the Ministry of Industry and Information Technology and other departments jointly issued the 15th Five-Year Plan for Pharmaceutical Industry Development, proposing to shift China's pharmaceutical industry from scale-driven to innovation-driven and quality-oriented growth, with the goal of reaching world-leading status by 2030. Notably, overseas AI model company Anthropic has reportedly begun building wet laboratories for biology research, stating that life sciences is now one of its most resource-intensive areas. AI-driven drug development is currently on an upward trajectory fueled by both new external capital and expanding industry R&D budgets.
Mainland property stocks expanded their gains in the afternoon. By the close, Sunac China (01918) surged 12.30% to HK$0.685, Ronshine China (03301) advanced 6.15% to HK$0.069, and China Vanke (02202) rose 5.11% to HK$2.47. Zhang Xuetao, director of the Real Estate Market Regulation Department under the Ministry of Housing and Urban-Rural Development, stated that the current real estate market is undergoing two transformations: a major shift in supply-demand dynamics and the industry's entry into the era of existing housing stock. Additionally, the newly revised Housing Provident Fund Management Regulations took effect on September 20, expanding the system's focus from solely supporting home purchases to covering the full housing cycle of buying, renting, repairing, and maintaining. Goldman Sachs-invited real estate expert Ding Zuyu predicted that short-term supply and demand are roughly balanced, but due to changes in sales models, a significant supply shortage will emerge from March 2027 lasting 12 to 18 months, followed by gradual stabilization over approximately two years.
PCB concept stocks were actively traded. By the close, Guanghe Technology (01989) jumped 14.31% to HK$123, Victory Giant Technology (02476) climbed 12.94% to HK$225.2, and Kingboard Laminates Holdings (01888) rose 3.52% to HK$48.76. Recent research reports from multiple institutions indicated that as upstream raw material prices continue to rise, PCB manufacturers have begun re-quoting prices, signaling that the industry's price transmission mechanism is now operational. The third quarter of 2026 is expected to mark the inflection point for sector earnings improvement. The copper-clad laminate industry is currently experiencing both volume and price increases, with major manufacturers including Kingboard and Nanya issuing consecutive price adjustment notices since December last year. Weekly CCL price increases have ranged from 10% to 20%, with Kingboard Laminates implementing seven price hikes this year, some products accumulating gains exceeding 100%. China Merchants Securities noted that smaller manufacturers have raised prices monthly since May, completing four to five rounds of increases, with most smaller PCB makers' net margins having recovered to historical highs above 10% in Q3.
Shipping and shipbuilding concept stocks performed actively. By the close, COSCO SHIP ENGY (01138) rose 6.75% to HK$20.56, CSSC Offshore & Marine Engineering (00317) advanced 4.07% to HK$15.86, and Orient Overseas International (00316) gained 2.12% to HK$149.4. Maersk confirmed it has signed contracts for 26 large container vessels, each with a capacity of 18,600 TEU, all equipped with dual-fuel engines and scheduled for delivery between 2029 and 2030. Meanwhile, VLCC freight rates hit record highs again, with TD3C, TD15, and TD22 route rates reaching US$1.21 million, US$530,000, and US$390,000 per day respectively on September 17. Guotai Haitong believes the oil tanker market had already entered a super cycle before the Middle East conflict, with war risk premiums, regional disruptions, and efficiency losses during the conflict driving freight rates to new highs.
Gold stocks declined collectively. By the close, China Gold International Resources (02099) fell 6.62% to HK$234.2, Lingbao Gold (03330) dropped 5.46% to HK$23.22, and Zijin Gold International (02259) slipped 2.7% to HK$154.8. Minneapolis Fed President Neel Kashkari said on September 20 that inflation across all sectors of the U.S. economy remains too high, not just driven by oil prices. Notably, following the Fed's hawkish rate hike last Wednesday, Goldman Sachs currently expects the central bank to raise rates by another 25 basis points at its October policy meeting. Guolian Futures believes the core logic for precious metals will revolve around December Fed policy expectations, U.S. Treasury yields, and oil-driven inflation expectations, with prices likely to maintain a range-bound pattern.
In notable individual stock movements, Transwarp (06727) broke below its IPO price on its debut day, closing down 9.18% at HK$44.5. Transwarp is a leading AI infrastructure software provider in China, generating revenue primarily by selling AI and big data infrastructure software products and related services to corporate and government clients. According to announcements from the Shanghai and Shenzhen stock exchanges, Transwarp has been included in the Stock Connect eligible list effective September 21, meaning the company was eligible for inclusion on its first trading day.
Impact Therap-B (07630) surged on heavy volume, closing up 27.78% at HK$16.65. The company announced on September 18 that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) had adopted a positive opinion recommending approval of the marketing authorization for its core product Sepalna, intended for maintenance treatment of advanced epithelial ovarian cancer, fallopian tube cancer, and primary peritoneal cancer. Following the CHMP's positive recommendation, Sepalna will be submitted to the European Commission for a final decision.
Boyaa Interactive (00434) showed strong momentum, closing up 8.71% at HK$3.12. As the market digested the setback of the CLARITY Act and the Fed's rate hike, cryptocurrencies rallied broadly with Bitcoin breaking above US$81,000. Boyaa announced earlier this month that it purchased approximately 205 Bitcoins in the open market between June 24 and September 4 for a total consideration of about HK$110 million. As of the announcement date, the company held approximately 4,316 Bitcoins at an average purchase cost of US$68,300 per coin.
Xiaomi Group-W (01810) continued its climb, closing up 4.47% at HK$27.58. On September 20, Xiaomi founder, chairman, and CEO Lei Jun announced that the new Xiaomi 18 Pro series would be unveiled at 7 PM on September 23, alongside several other tech products. Additionally, Lei Jun stated he planned to host a livestream at 7 PM on September 21.
Andre Juices (02218) gapped up but closed lower, falling 17.58% to HK$20.06. The company announced plans to acquire a 62.06% stake in Yongqiang Technology for a total cash consideration of RMB 793 million, thereby obtaining control of the target company. Upon completion of the transaction, Yongqiang Technology will become a controlled subsidiary. The target company is a high-tech enterprise primarily engaged in the R&D, production, and sales of integrated circuit electronic information interconnect materials.
Comments