The three major Hong Kong stock indices collectively moved higher during the morning session.
By the midday break, the Hang Seng Index had gained 1.57% to reach 23,416.89 points, the Hang Seng Tech Index advanced 2.02%, and the Hang Seng China Enterprises Index rose 1.65%.
Across the market board, technology stocks saw broad-based gains, with Xiaomi, NetEase, and Bilibili all rising more than 3%.
Gold stocks rallied sharply, with Chifeng Gold surging over 16%.
Automotive stocks were active, with BYD climbing more than 5%.
Robotics concept stocks were broadly higher, with Estun jumping over 21%.
Pharmaceutical stocks extended their rebound for a second day, with Rongchang Bio up 6%.
Gold Stocks Surge
Gold stocks recorded significant gains, led by Chifeng Gold's surge of more than 16%.
This follows data released by the US Bureau of Labor Statistics on the evening of July 2nd, showing non-farm payrolls increased by 57,000 in June.
The weaker-than-expected labor market data led traders to fully price in expectations for a Federal Reserve interest rate cut in December, shifting from a prior expectation of October.
Additionally, comments from Federal Reserve Governor Waller at the ECB Forum on Wednesday, noting that inflation risks have diminished, further dampened speculation for rate hikes within the year.
Automotive Sector Active
Automotive stocks showed strength, with BYD rising over 5%.
The core catalyst for this continued rebound stems from June delivery figures released by new energy vehicle manufacturers.
BYD's total sales for June reached 403,500 units, with overseas exports hitting a new high and becoming a key growth engine.
Leapmotor led decisively with over 90,000 deliveries, while NIO and XPeng both surpassed the 40,000-unit mark.
Furthermore, industry fundamentals are being reshaped by the implementation of new national standards, reinforcing the dominance of leading automakers.
Effective July 1st, two mandatory national standards for the new energy vehicle industry, covering electric vehicle safety and power battery safety requirements, officially took effect, significantly raising the industry's entry barriers.
Analysts at China Securities point out that the rebound potential for Hong Kong's automotive sector hinges on a confluence of three factors: a more rational pricing competitive landscape, profit contributions from new drivers like AI, and an improvement in the global liquidity environment.
Robotics Concept Gains
Robotics concept stocks advanced broadly, with Estun soaring more than 21%.
This movement follows the China Securities Regulatory Commission's approval of Unitree Robotics' application for an initial public offering and listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board.
Unitree Robotics plans to issue new shares representing no less than 10% of its capital, targeting fundraising proceeds of approximately 4.202 billion yuan.
The raised funds are earmarked for investment in intelligent robot model and core technology R&D, development of new intelligent robot products, and the construction of an intelligent robot manufacturing base.
A representative from one of Unitree's investors suggested the company's post-IPO market capitalization could reach around 40 billion yuan, potentially setting a price anchor for other robotics companies seeking listings.
Pharmaceuticals Extend Rebound
Pharmaceutical stocks continued their rebound, with Rongchang Bio gaining 6%.
Institutional analysis notes that cross-border licensing (BD) deals by domestic innovative drug companies in the first half of 2024 have repeatedly exceeded expectations.
Coupled with impressive clinical data disclosed at recent major medical conferences, the sector's fundamentally positive outlook is becoming more pronounced.
As Federal Reserve officials like Governor Waller reaffirm a commitment to price stability, reinforcing market expectations that policymakers are "in no rush to hike rates," the highly interest-rate-sensitive innovative drug sector is seeing sustained and broad-based valuation upside potential.
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