Hong Kong stocks opened higher but slipped intraday before recovering, with all three major indices closing in positive territory on Wednesday. A landmark advancement in mRNA technology—moving beyond infectious disease vaccines into oncology—triggered a broad surge in vaccine-focused ETFs, while an expanded U.S. Treasury buyback program lifted gold and precious metals sectors.
The Hang Seng Index rose 0.8% to close at 25,698.49 points, with full-day turnover reaching HK$269.119 billion. The Hang Seng Tech Index gained 0.39% to finish at 4,700.53 points. Among the largest Hong Kong-listed ETFs by assets, Tracker Fund of Hong Kong (02800) advanced 0.85% to HK$26.22, Hang Seng China Enterprises ETF (02828) climbed 1.35% to HK$88.28, and CSOP Hang Seng Tech Index ETF (03033) edged up 0.13% to HK$4.606.
Sector Performance: mRNA Milestone Ignites Vaccine ETFs
The application of mRNA technology has officially crossed from infectious disease vaccines into cancer treatment, prompting a full-scale rally in vaccine ETFs. By the close, Vaccine ETF Harvest (562860.SH) jumped 9.97% to RMB0.717, Vaccine ETF Guotai (159643.SZ) surged 8.5% to RMB0.613, and Nasdaq Biotech ETF CSI (513290.SH) climbed 6.78% to RMB1.826.
The catalyst came from Moderna and Merck's joint announcement that their personalized mRNA cancer vaccine (mRNA-4157/V940) achieved positive results in a Phase III clinical trial targeting melanoma. This marks the world's first successful Phase III trial for an mRNA cancer vaccine, validating the feasibility of "one patient, one drug" personalized cancer immunotherapy. The breakthrough pushed Moderna's shares up an extraordinary 176.97%, adding approximately $44 billion to its market cap in a single day, while the Nasdaq Biotechnology Index soared 6.39%—its biggest one-day gain in six years.
CICC analysts noted that the success of this Phase III combination therapy trial validates the technical value of the mRNA platform and opens up imagination for broader indication expansion. In the near term, attention may shift to domestic companies with similar technology platform capabilities, while the strategic value of this sector warrants serious consideration and revaluation over the medium to long term.
Sector Performance: Treasury Buyback Expansion Boosts Gold ETFs
Gold-related ETFs also rallied strongly. Gold Stock ETF Yongying (517520.SH) rose 5.08% to RMB2.173, Gold Stock ETF Guotai (517400.SH) gained 4.91% to RMB1.71, and Gold Mining ETF E Fund (02824) climbed 7.12% to HK$11.58.
The U.S. Treasury announced it would at least double the buyback cap for 10-to-30-year bonds to $4 billion per operation, pushing long-end Treasury yields significantly lower. This weakened the U.S. dollar index, providing support for gold prices. CITIC Futures pointed out that while deteriorating U.S.-Iran negotiation prospects keep oil prices and inflation risks elevated, the Treasury's support for the long-end bond market has temporarily weakened the transmission channel from "rising oil prices to higher long-end yields."
Gold is now simultaneously benefiting from low interest rates, a weaker dollar, and uncertainty premiums tied to geopolitical and policy risks. If oil prices remain elevated but Treasury yields stay supported by policy measures, gold may further reflect risk premiums associated with U.S. policy and institutional volatility. However, if energy-driven inflation eventually pushes long-term rates back up, gold price fluctuations could amplify notably.
Institutional Outlook
Zhang Sida, an analyst at Guoyuan International, believes that a sustained upward trend in Hong Kong stocks still requires improvement in domestic demand and corporate earnings, alongside further inflows from southbound capital and foreign investors. Last week, Hong Kong stocks notably underperformed U.S. equities and major Asian markets despite cooling overseas rate hike expectations, suggesting that overseas interest rates have shifted from a primary headwind to a marginal tailwind. Domestic fundamentals, earnings expectations, and incremental capital flows are now becoming the more critical pricing variables.
ETF News
Several new ETFs made their market debuts. Grain ETF CSI (159073.SZ) started trading and closed down 0.68% at RMB1.03, with turnover of RMB179 million. The fund tracks the Guozheng Grain Industry Index, with investments exclusively focused on the grain supply chain.
Cloud Computing ETF Yongying (517230.SH) debuted with a 0.51% gain to RMB0.98, recording turnover of RMB20.49 million. The fund tracks the CSI Shanghai-Hong Kong-Shenzhen Cloud Computing Industry Index, with information technology and communication services sectors dominating the portfolio.
Cloud Computing ETF Southern (158012.SZ) also listed, rising 0.11% to RMB0.937 with turnover of RMB14.21 million. This fund tracks the CSI Cloud Computing 50 Index, covering IT equipment, optical communications, and other computing power supply chain companies.
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