Hong Kong's three major indices collectively advanced in morning trading. As of the midday close, the Hang Seng Index rose 0.26% to 26,417.22, the Hang Seng Tech Index increased 0.52%, and the Hang Seng China Enterprises Index edged up 0.11%. Sector-wise, technology and internet stocks were mixed. JD.com surged more than 7%, Meituan gained over 4%, while Baidu fell 2% and Kuaishou dropped over 1%. Wind power stocks showed strength, with Concord New Energy soaring more than 10%. Stocks related to JD.com rallied significantly today, with JD Industrial climbing over 14%. Conversely, automobile stocks weakened, with Geely Auto declining more than 5%.
Wind power stocks performed robustly, led by Concord New Energy's jump of over 10%. A recent Morgan Stanley report highlighted that capital expenditure forecasts for hyperscale cloud providers for 2026 have been significantly revised upward from $450 billion to $800 billion, driven by a 350% surge in token demand. The report projects a 55GW power deficit facing data centers. AI participants are increasingly acquiring "off-grid" solutions, with power availability becoming a decisive factor tightening energy infrastructure financing. Recent intensive policy announcements at the national level have provided institutional support for the rise in power stocks. Four government departments jointly issued an "Action Plan," making the proportion of green electricity usage a key reference indicator and strengthening guidance on the layout planning of computing power facility projects. Furthermore, 24 provinces (autonomous regions, municipalities) across the country have issued or formulated supporting policies for direct green power connections, with 99 direct green power projects having completed approval, corresponding to a total new energy installed capacity of 34.05 million kilowatts.
The "JD family" of stocks surged today, with JD Industrial soaring over 14%. JD.com released its latest financial report last night, with core financial metrics generally exceeding market expectations, demonstrating resilient development. The report showed that in the first quarter, JD.com achieved revenue of 315.7 billion yuan (approximately $45.8 billion), surpassing market estimates of 311.43 billion yuan. Adjusted earnings per ADS reached 5.12 yuan, significantly better than the market expectation of 3.57 yuan. Adjusted EBITDA was 8.02 billion yuan, far exceeding the estimated 4.46 billion yuan, highlighting strong profitability performance.
Automobile stocks weakened, with Geely Auto falling more than 5%. The decline in Hong Kong-listed auto stocks today was primarily attributed to the combined impact of three factors: a significant drop in sales for joint-venture automakers in China, heavy pressure on industry profits, and additional market concerns regarding specific companies like XPeng. Analysis suggests the most direct fundamental negative was the sharp plunge in April sales in China for the two major Japanese joint-venture brands, Toyota and Honda, exacerbating market worries about the overall automotive industry's health. Multiple major investment banks noted that the ongoing price war, coupled with a slow transition to new energy vehicles, makes a near-term inflection point in the sector's profitability difficult to foresee.
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