Hong Kong's stock market halted its decline today, with all three major indices turning positive. Former U.S. President Trump's announcement of cancelling strikes against Iran diminished geopolitical risk premiums, triggering a broad rally in precious metals and non-ferrous metals ETFs. Meanwhile, SpaceX's official Nasdaq listing tonight boosted the aerospace and aviation sectors against the broader market trend.
By the close, the Hang Seng Index had risen 1.93% to 24,718.10 points, with a daily turnover of HK$316.438 billion. The Hang Seng TECH Index gained 1.06% to 4,705.20 points. Among major Hong Kong ETF products by size, the Tracker Fund (02800) closed up 1.95% at HK$25.08. The CSOP Hang Seng China Enterprises Index Daily (2x) Leveraged Product (07709) rose 0.52% to HK$106.55, while the CSOP SAMSUNG KODEX 200 Futures 2X Leveraged ETF (07747) surged 12.62% to HK$166.00.
Market Sector Performance
Precious and Non-Ferrous Metals Surge
The precious and non-ferrous metals sector led the market's gains today. By the close, the Yongying Gold Stock ETF (517520) had jumped 6.42% to 1.807 yuan. The Wanjia Industrial Nonferrous Metals ETF (560860) advanced 6.14% to 1.712 yuan, and the ChinaAMC Nonferrous Metals ETF (159652) climbed 5.52% to 1.683 yuan.
This rally followed Trump's statements about cancelling military action against Iran and indicating a U.S.-Iran deal was "largely finalized" and could be signed this weekend. This significantly reduced geopolitical risk premiums, pushing gold prices back above $4,200 per ounce and triggering a strong rebound in the non-ferrous metals sector.
CITIC Futures noted that while U.S.-Iran talks continue with unclear outcomes, short-term signals of geopolitical easing are sufficient to drive a market correction in tightening expectations. This improvement in the "denominator" factor directly benefits the valuation recovery of interest-rate-sensitive sectors like non-ferrous metals.
Huaan Fund commented that as market expectations for Federal Reserve tightening are gradually digested and negative factors are fully priced in, the dampening effect of high interest rates on U.S. consumption and investment will become more apparent. First-quarter GDP growth was revised down to 1.6%, with household consumption growth at only 0.5%, and interest-rate-sensitive sectors continue to show weakness. The market's short-term rate hike expectations may be excessive, supporting the medium- to long-term investment case for gold and non-ferrous metals.
Aerospace and Aviation Sector Gains
The aerospace and aviation sector was another standout, rising against the market trend. At the close, the ChinaAMC Aviation ETF (159257) was up 5.59% at 1.001 yuan. The Fullgoal Aviation ETF (159392) gained 5.34% to 1.085 yuan, and the Wanjia Aerospace ETF (159208) increased 4.74% to 1.193 yuan.
The catalyst was SpaceX's official listing on the Nasdaq tonight, providing a significant boost to the commercial aerospace industry chain. Huafu Securities believes SpaceX's listing will increase attention on China's domestic commercial aerospace supply chain. They noted SpaceX's valuation rationale has evolved from a "rocket company" to a dual-driver model of "space infrastructure plus AI computing power."
Orient Securities stated that looking ahead to June and July, domestic catalysts in rockets and satellites are expected alongside SpaceX's overseas listing. As a strong thematic sector, overall market attention on commercial aerospace is likely to rise rapidly. They are optimistic about SpaceX supply chain companies, key players in the rocket segment, and core domestic companies with early-stage deployment of next-generation satellite technologies.
Institutional Perspectives
China Merchants Securities views the recent market adjustment as a liquidity shock rather than a bursting of the AI bubble. However, if market risk appetite experiences periodic disturbances, margin financing flows could turn net negative, potentially causing a temporary pause in concentrated buying trends and increasing short-term volatility.
From a medium-term perspective, they believe it is not yet time for a major shift in market style or leadership. By late June, as the market enters the mid-year earnings reporting season, technology sectors with strong earnings visibility and high景气度 are expected to maintain their outperformance.
Additionally, the commercial aerospace rally is seen as a thematic revaluation, primarily driven by SpaceX's listing expectations, the diffusion of rocket reusability technology, the acceleration of satellite internet constellation deployment, and the revaluation of China's commercial launch supply chain.
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