Hong Kong's three major stock indices closed collectively higher on March 27. At the close, the Hang Seng Index advanced 0.38% to 24,951.88 points, while the Hang Seng Tech Index gained 0.35% and the HSCEI rose 0.76%. In market movements, technology and internet stocks showed mixed performance, with Kuaishou and Xiaomi each rising over 1%, while Bilibili fell more than 1%. Biopharmaceutical concept stocks surged, with CSPC PHARMA jumping over 13%. The lithium battery sector was among the top gainers, as Ganfeng Lithium Group Co.,Ltd. climbed more than 9%. The commercial aerospace sector led the declines, with Junda股份 dropping over 9%.
Biopharmaceutical concept stocks recorded significant gains, with CSPC PHARMA rising over 13%. This comes as annual reports from innovative drug companies have been released intensively recently, showing leading firms have significantly improved profitability and possess ample cash flow, strengthening the foundation for long-term R&D investment. Several core companies achieved growth in both revenue and profit, with operating cash flow turning positive, creating a virtuous cycle between profit realization and R&D expenditure. This highlights corporate core competitiveness and sustainable development capabilities, providing solid fundamental support for the sector's rebound.
The lithium battery sector was a top performer, with Ganfeng Lithium Group Co.,Ltd. advancing over 9%. According to SMM data, China's total energy storage battery cell production for January-February 2026 reached 119.09 GWh, a 91% year-on-year increase. Additionally, as details of trade-in subsidy programs are fully implemented across regions, spring auto show promotions begin, and automakers launch new models, post-holiday end-market activity has gradually improved. The new energy vehicle market started a seasonal recovery in mid-to-late March. Huatai Securities believes that, considering potential supply disruptions in domestic Yichun and overseas regions like Zimbabwe in the second half of the year, high oil prices are boosting demand expectations for electric vehicles and energy storage.
The commercial aerospace sector led the declines, with Junda股份 falling over 9%. Recent reports indicate SpaceX plans to allocate up to 30% of its IPO shares to individual investors, significantly higher than the typical 5%-10% retail allocation in U.S. IPOs. The company believes the "Musk fan" base can help stabilize the stock price. Meanwhile, the world's richest person has also made rare direct arrangements for the underwriting efforts of investment banks.
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