Hong Kong's major stock indices collectively moved higher during the morning session.
As of the midday break, the Hang Seng Index had risen by 1.86% to reach 24,476.69 points. The Hang Seng TECH Index gained 2.69%, while the Hang Seng China Enterprises Index increased by 1.83%.
Key Market Movements
Technology stocks were broadly higher. Lenovo Group Ltd and Xiaomi Corp surged more than 4%. Shares of Alibaba Group Holding Ltd, Kuaishou Technology, JD.com Inc, and Baidu Inc all climbed over 3%.
The innovative drug sector saw significant strength, with RemeGen Co Ltd jumping more than 7%.
Automotive shares were active, with Leapmotor advancing over 6%.
Pork-related stocks were among the top gainers, as Dekon Agriculture and Animal Husbandry Group rose more than 6%.
Two companies debuted on the main board of the Hong Kong exchange today. Nexchip Semiconductor Corporation gained over 1%, while Befar Group Co Ltd fell more than 12%.
Focus on the Innovative Drug Sector
The strong performance in innovative drug stocks followed a joint announcement on July 9th by China's National Health Commission, National Administration of Traditional Chinese Medicine, and National Disease Control and Prevention Administration. They released the new National Essential Medicine List (2026 Edition). A key market development is the first-time bulk inclusion of innovative drugs in this list. According to officials, 16 innovative drugs were included in the latest edition after a rigorous review process, which included four domestically developed Class I new drugs.
Automotive Sector Activity
The positive momentum for auto stocks comes amid fresh industry data. Figures released by the China Association of Automobile Manufacturers on July 9th show stable growth in production, sales, and exports of new energy vehicles (NEVs) in the first half of the year. From January to June, NEV production and sales reached approximately 7.438 million and 7.446 million units, representing year-on-year increases of 6.7% and 7.3%, respectively. Notably, NEVs accounted for nearly 60% of total new car sales in June.
Pork Stocks on the Rise
The rally in pork stocks is supported by a sustained rebound in hog prices after an extended period of low volatility. On July 1st, the national average price for lean hogs broke through the 10 yuan per kilogram mark, a level not seen in over two months, with a single-day surge of 4.3% marking the largest daily gain in nearly two years. Prices have continued to climb. As of July 10th, the average price is approximately 11.29-11.33 yuan per kilogram, a substantial increase of nearly 21% from a recent low of 9.36 yuan per kilogram. Analysts note the sector's correction has brought valuations to a near two-year low, and with ongoing capacity adjustment policies, a potential cyclical turnaround may be approaching.
Market Debuts
Regarding the new listings, Nexchip Semiconductor Corporation saw its public offering oversubscribed by approximately 344.26 times. The final number of shares offered publicly was about 21.62 million, representing about 10% of the total offering. The company received around 195,500 valid applications.
Befar Group Co Ltd announced the pricing of its global offering of 352.126 million H shares at HK$3.48 per share, with net proceeds estimated at HK$1.16 billion. The Hong Kong public offering portion, representing 10% of the global offering, was oversubscribed by about 227.58 times. The international offering portion was oversubscribed by approximately 4.26 times.
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