Hong Kong's three major stock indices closed higher on August 21. The Hang Seng Index advanced 1.21% to 26,009.46 points, the Hang Seng Tech Index climbed 1.40%, and the Hang Seng China Enterprises Index rose 1.01%.
In sector movements, tech stocks mostly traded higher with Xiaomi and NetEase each jumping over 4%, while Alibaba fell more than 2%. Gold stocks rallied collectively, with Chifeng Gold surging over 12%. Shipping and port stocks strengthened, led by COSCO SHIP ENGY gaining more than 7%. Lithium mining concepts were active, with Tianqi Lithium Corporation climbing over 11%.
Gold stocks rally on Treasury buyback signals
Gold stocks saw broad gains, with Chifeng Gold advancing more than 12%. On the news front, U.S. Treasury Secretary Scott Bessent has been intensively signaling policy moves. As long-term U.S. Treasury yields trend higher again, Bessent indicated that the Treasury's single long-dated bond buyback could exceed $4 billion, emphasizing that the department has a powerful toolkit at its disposal. According to CICC, increased Treasury bond buybacks would, on one hand, add buying support for long-end U.S. Treasuries and improve market liquidity, but on the other hand, it would undermine the credibility of U.S. debt and the dollar — making gold the most direct beneficiary asset.
Shipping stocks strengthen amid Middle East route disruptions
The shipping and port sector strengthened, with COSCO SHIP ENGY rising over 7%. According to Seaway Maritime News, in response to escalating navigation risks in the Strait of Hormuz and the Bab el-Mandeb Strait, Cosco Shipping Energy Transportation and China Merchants Energy Shipping are adjusting their oil tanker deployment in the Middle East. They are loading cargo outside the strait, using ship-to-ship transfers, and exploring alternative ports to maintain China's crude oil imports, with a policy of no longer entering the Persian Gulf to load oil. Analysts point out that ship-to-ship transfers and extended voyage distances will continue to tie up VLCC capacity. CITIC Construction Investment released a research report stating that geopolitical conflicts are driving international oil shipping rates to high levels. Iran has refused to reopen the Strait of Hormuz, and on August 11, Houthi forces attacked a cargo vessel, resulting in six deaths. Asian markets have shifted to purchasing oil in the Gulf of Oman, and the scarcity of VLCCs in the Gulf has pushed daily charter rates close to $500,000, with the risk premium concentrated on medium and large tankers.
Lithium mining sector gains on tight supply and strong demand
The lithium mining concept was active, with Tianqi Lithium Corporation rising more than 11%. Huatai Futures believes that the current supply of lithium ore raw materials continues to be tight, providing support for lithium carbonate costs. Trader inventories remain at low levels, and recent enthusiasm for restocking has picked up. Downstream material manufacturers rely on long-term contracts and customer-supplied materials to secure supply, focusing primarily on essential restocking. On the demand side, overall downstream operating rates remain high, with August order production scheduling continuing to show strong month-over-month momentum, and spot prices are strengthening. Major battery manufacturers are expected to see significant production growth by 2027, and overly pessimistic long-term expectations are being appropriately revised, which may reinforce expectations of a seasonal rebound.
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