Hong Kong stocks closed (07.15) | The Hang Seng Index closed up 1.4%, and pharmaceuticals and consumer stocks rose more than 23% throughout the day, and Zhaoyan Pharmaceutical (06127) surged more than 23% after profit
The Zhitong Finance App learned that the US CPI fell beyond expectations, the Fed's interest rate hike expectations plummeted, and the three major Hong Kong stock indices fluctuated higher throughout the day. By the close, the Hang Seng Index had risen 1.4% or 340.37 points to 24681.1 points, with a full day turnover of HK$34.297 billion; the Hang Seng State-owned Enterprises Index rose 1% to 8184.38 points; and the Hang Seng Technology Index rose 1.3% to 4740.49 points.
Cathay Pacific Haitong Securities believes that the liquidity mitigation window for Hong Kong stocks has arrived. It is expected that from mid-late July to mid-September, the micro capital side of Hong Kong stocks will face a mitigation window. On the one hand, Hong Kong stock IPOs will temporarily enter the low season and continue until the end of September; on the other hand, the peak of sales restrictions lifted in early July has passed, and the ban will be lifted on a large scale of over HK$30 billion, as early as the end of September. The possibility that expectations for overseas rate hikes will be revised is also rising.
Blue-chip stock performance
Cinda Biotech (01801) led the blue chip increase. At the close, it rose 7.77% to HK$97.05, with a turnover of HK$3.809 billion, contributing 17.6 points to the Hang Seng Index. Cinda Biotech announced that it has reached a major exclusive licensing agreement with Spero Therapeutics to grant Spero the third-generation FC silent anti-CD40L antibody iBi355 (Spero R&D code: SP001) global rights outside of Greater China. The total transaction amount is approximately US$1.1 billion, plus a gradient sales share. This is Cinda Biotech's fourth billion-dollar foreign authorized transaction in 2026.
In terms of other blue-chip stocks, Meituan-W (03690) rose 5.3% to HK$83.4, contributing 35.75 points to the Hang Seng Index; Henderson Land (00012) rose 4.67% to HK$26.9, contributing 2.61 points to the Hang Seng Index; SMIC (00981) fell 2.62% to HK$76.3, dragging down the Hang Seng Index by 13.18 points; China Life Insurance (02628) fell 2.17% to HK$28, dragging down the Hang Seng Index by 7.06 points.
Popular sector aspects
On the market, most of the large technet stocks rose; Meituan rose more than 5%, Tencent rose nearly 4%, and Alibaba rose more than 2%. Multiple benefits resonated. Pharmaceutical stocks were strong throughout the day, leading in the direction of innovative drugs and CXO; the mid-term performance forecast was generally high, with Chinese brokerage stocks rising ahead; expanding domestic demand was further boosted by policies, and large consumer stocks performed brilliantly; and the concept of large model stocks and pork was generally improving. On the other side, PCB concepts, gold stocks, aviation stocks, etc. are all under pressure.
1. Pharmaceutical stocks were strong throughout the day, leading in the direction of innovative drugs and CXO. At the close, Zhaoyan Pharmaceutical (06127) rose 23.78% to HK$27.48; Kangfang Biotech (09926) rose 7.98% to HK$103.5; Cinda Biotech (01801) rose 7.77% to HK$97.05; and Kanglong Chemical (03759) rose 6.02% to HK$25.02.
The internationalization of China's innovative drugs is entering a phase of accelerated implementation. Recently, Dizhe Pharmaceutical, Hanson Pharmaceuticals, and Cinda Biotech launched three major overseas BDs. The total amount of each transaction reached the level of several billion US dollars. According to statistics, in the first half of 2026, the total amount of Chinese pharmaceutical overseas transactions reached 99.7 billion US dollars, surpassing the full year of 2024, and is expected to reach a new high for the whole year. Guojin Securities believes that the BD boom in innovative drugs going overseas is rising, and the current mismatch in valuation has brought layout opportunities.
It is worth noting that thanks to rising prices in the experimental monkey market combined with positive changes in fair value brought about by natural growth and value-added, Zhaoyan New Pharmaceutical announced that net profit attributable to shareholders of listed companies is expected to be 600 million yuan to 900 million yuan for the first half year of 2026, an increase of 884.9% to 1377.4% over the previous year. Recently, “monkeys” have swept the investment market. According to reports, the market price of the experimental monkey has risen to 200,000, which is comparable to a mid-range car.
2. Chinese brokerage stocks had the highest gains. At the close, CITIC Construction Investment Securities (06066) rose 5.58% to HK$12.3; CICC (03908) rose 5.21% to HK$22.22; and GF Securities (01776) rose 4.68% to HK$17.45.
On the evening of July 14, CICC announced that the major asset restructuring matters involving the merger of Dongxing Securities and Cinda Securities by exchanging shares have been accepted by the China Securities Regulatory Commission. In terms of performance, several listed brokerage firms have recently announced Yingxi. The first half of the year's results are expected to reach a record high for the same period. CITIC Securities, Cathay Pacific Haitong, China Merchants Securities, etc. expect net profit to exceed 10 billion yuan in the first half of the year. In terms of growth drivers, the various announcements are basically the same, mainly due to the steady, moderate and positive capital market activity, and a significant year-on-year increase in revenue from wealth management, investment transactions, investment banking, etc.
3. The big model duo collectively climbed higher. At the close, MINIMAX-W (00100) rose 13.3% to HK$260.6; Smart Spectrum (02513) rose 6.69% to HK$1,707.
The latest research report released by J.P. Morgan Chase drastically raised the target price of Smart Spectrum from HK$2,000 to HK$2,400, and maintained an “increase” rating. The bank pointed out that at present, the basic model industry has entered a stage of capital-intensive development, and the ability to obtain capital has become a core competitiveness. CICC stated in the research report that as a scarce target in the field of large AI models, MINIMAX-W has shown extremely high growth potential. According to financial data, in FY2025, the company achieved impressive revenue surges of 159% year-on-year, and gross margin increased to 25.4% at the same time.
4. Big consumer stocks have been active. At the close, Yasui Foods (02648) rose 7.81% to HK$73.85; Mingchuang Premium (09896) rose 7.65% to HK$24.48; and Giant Biotech (02367) rose 5.72% to HK$28.44.
Recently, the State Council approved the “Fifteenth Five-Year Plan” to expand consumption, making it clear that total retail sales of social consumer goods will reach around 60 trillion yuan by 2030. Furthermore, according to data from the National Bureau of Statistics, retail sales of online goods and services nationwide reached 10071.5 billion yuan in the first half of the year, an increase of 5.2% over the previous year. Wanlian Securities pointed out that in the context of policy support, it is recommended to focus on three main lines to lay out investment opportunities in the consumer industry: the main line of improving the quality of service consumption and the democratic line; the main line of emotional consumption and trendy domestic products; and the main line of demand recovery. The valuation of the food and beverage sector is at a historically low level, and there is room for restoration.
Popular exotic stocks
Maoyan Entertainment (01896) is happy. At the close, it was up 7.44% to HK$5.34.
As of July 14, the total box office of domestic movies in July (including pre-sales) had surpassed the 1.5 billion yuan mark, and the total box office of the entire summer program had also surpassed 3 billion yuan. Among them, “Kung Fu Women's Soccer”, directed by Chow Sing-chi, took the lead in the summer program. According to public information, Maogan Entertainment is the first controlling distributor of “Kung Fu Women's Soccer” and plays a central role in the commercial distribution of the film.
Meituan-W (03690) performed brilliantly. At the close, it was up 5.3 percent to HK$83.4.
Citigroup Research reports that Meituan's open source LongCat-2.0 is expected to further consolidate its leading position in the local lifestyle services market. The model's advanced Agentic architecture will improve internal R&D efficiency and attract external developers. According to the report, by using its huge and proprietary offline transaction and operation data, Meituan can provide unique AI-driven marketing and business insights for small and medium-sized business merchants.
China Building Materials (03323) issued a profit warning. At the close, it was down 11.86 percent to HK$3.79.
China Building Materials is forecasting a loss of approximately RMB 890 million for unaudited equity holders in the first half of the year, and profit attributable to equity holders of approximately RMB 1.36 billion for the same period last year. Mainly due to the decline in sales prices of the Group's main products cement, commercial concrete, and aggregates, the decline in sales of commercial concrete and gypsum board, and the increase in depreciation provisions for the Group's properties, plants and equipment, and goodwill impairment provisions.