To The Moon

Hong Kong stocks opened the morning session on a soft note, with the benchmark Hang Seng Index slipping 0.73%, or 180 points, to settle at 24,533 points by midday break. The Hang Seng Tech Index also retreated, losing 0.76% during the same period. Turnover across the Hong Kong market reached HK$99.1 billion in the first half of the trading day.

Contract Research Organization (CRO) concept stocks emerged as the standout performers, leading gains amid a flurry of positive catalysts surrounding AI-driven drug discovery (AIDD). Industry sentiment for the broader CXO sector is clearly on an upward trajectory, with the latest developments fueling investor optimism.

GenScript Biotech Corp (01548) surged 16% to lead the pack, while Viva Biotech Holdings (01873) advanced 4.8% and Asymchem Laboratories (06821) climbed 2.98%. In a notable strategic move, Dyrecta Therapeutics-P (07666) jumped 15.67% after announcing a partnership with Joinn Laboratories to build a platform for mRNA drug innovation, research, and commercial-scale manufacturing. Harbour BioMed-B (02142) rose 3% following news that its subsidiary, Nona Biosciences, had successfully developed the HCAbLM language training model.

Turning to other movers, Yuk Wing Group Holdings (01536) extended its rally, climbing over 22% after Hellobaby International Limited emerged as a major shareholder of the company. Star Plus Legend Holdings (06683) gained more than 21% as its four-legged robot dog enters mass production, paving the way for a dual revenue model combining hardware sales with intellectual property-driven experiences. Yangtze Optical Fibre and Cable Joint Stock (06869) rose over 4%, supported by persistently tight supply-demand dynamics in the optical fibre market, which is expected to allow leading players to fully unlock profit margins. Cao Cao Mobility (02643) advanced more than 10% as its RoboX strategy gains full momentum, with its AI-powered mobility ecosystem continuing to secure new implementations. Iluvatar CoreX (09903) was up over 7% after completing a capitalisation issue, which is anticipated to significantly improve its liquidity position.

On the downside, STERLING GP (01825) suffered a dramatic sell-off, plunging over 75% today following a sharp drop in the final minutes of yesterday's session, with multiple unusual warehouse transfer activities recently flagged at the company.

Gold-related equities came under broad pressure, tracking a decline in the precious metal's price. The sell-off follows the US Federal Reserve's first interest rate hike in three years, with the dot plot and hawkish comments from Governor Waller signalling that the tightening cycle is far from over. Shandong Gold Mining (01787) dropped 7%, Lingbao Gold (03330) fell 5.9%, and Zijin Gold International (02259) declined 6.3%.