Hong Kong's three major indices climbed steadily throughout the session, closing higher on Monday. The gains followed a cooler-than-expected US inflation report, which significantly reduced expectations for further Federal Reserve interest rate hikes. The Hang Seng Index advanced by 1.4%, or 340.37 points, to close at 24,681.1. The benchmark index recorded a total turnover of HK$3,042.97 billion. The Hang Seng China Enterprises Index rose 1% to 8,184.38, while the Hang Seng Tech Index gained 1.3% to finish at 4,740.49.
Key Market Movers
Among blue-chip constituents, INNOVENT BIO (01801) was the top performer. Its shares surged 7.77% to close at HK$97.05, contributing 17.6 points to the Hang Seng Index. The biotech firm announced a major exclusive licensing agreement with Spero Therapeutics for the global rights (excluding Greater China) to the anti-CD40L antibody IBI355, a deal valued at approximately $1.1 billion plus tiered sales royalties. This marks the company's fourth out-licensing deal exceeding the billion-dollar mark this year.
Other notable blue-chip moves included Meituan-W (03690), which jumped 5.3% to HK$83.4 and added 35.75 index points. Henderson Land (00012) gained 4.67% to HK$26.9. On the downside, SMIC (00981) fell 2.62% to HK$76.3, weighing on the index by 13.18 points, and China Life Insurance (02628) declined 2.17% to HK$28, detracting 7.06 points.
Sector Performance Highlights
Healthcare stocks were particularly strong, with innovative drug and CXO segments leading the charge. JOINN (06127) soared 23.78% to HK$27.48. The company issued a positive profit alert, forecasting its first-half 2026 net profit attributable to shareholders to be between RMB 600 million and RMB 900 million, representing a staggering year-on-year increase of 884.9% to 1377.4%. The surge was attributed to rising market prices for laboratory monkeys and associated fair value gains.
Other strong performers in the sector included Akeso (09926), up 7.98%, and Pharmaron (03759), up 6.02%. The momentum reflects an acceleration in the internationalization of China's innovative drug industry, with several major multi-billion dollar overseas licensing deals announced recently.
Mainland Chinese brokerages also traded higher. CSC (06066) advanced 5.58%, while CICC (03908) rose 5.21%. Several major brokers have issued strong earnings previews for the first half of 2026, citing a stable capital market, high activity levels, and significant revenue growth in wealth management and investment banking businesses.
Consumer stocks were active following new policy support for expanding domestic demand. ANJOY FOOD (02648) climbed 7.81%, MINISO Group (09896) increased 7.65%, and Giant Biogene (02367) added 5.72%.
Notable Individual Stock Moves
MAOYAN ENT (01896) shares gained 7.44% after the company issued a positive profit alert. The domestic box office for July has already surpassed RMB 15 billion, with the total summer season box office exceeding RMB 30 billion. The company is the lead distributor for the current summer blockbuster "Kung Fu Women's Soccer," directed by Stephen Chow.
In contrast, CNBM (03323) plunged 11.86% after issuing a profit warning. The company expects to report an attributable loss of approximately RMB 890 million for the first half of 2026, compared to a profit of RMB 1.36 billion a year earlier. The loss was primarily due to declining selling prices for its main products, lower sales volumes, and increased impairment provisions for property, plant, equipment, and goodwill.
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