Zhitong Hong Kong Stock Exchange Unravels | Capital Group, State-owned Banks Innovate Hi-Tech, Fall into Panic or Face a Turning Point
[Anatomy Dashboard]
With both US stocks and A shares falling, Hong Kong stocks continued to perform steadily today, and closed up 0.20%, stabilizing their annual line.
The war in the Middle East has resumed, and the Islamic Revolutionary Guard Corps has fired multiple ballistic missiles from the mainland at the US military base in Jordan. The US Central Command confirmed that they were all intercepted. According to CCTV news, US President Trump said in an interview that after Iran launches a missile attack on the US military, the US will retaliate. Trump said the US would “hit hard” Iran, Iran would be “hit hard”, and Brent soared 8% to return to $90. Oil and gas stocks such as CNOOC (00883) and Shandong Molong (00568) all rose more than 2%.
On Wednesday July 29th EST, the Federal Reserve announced after the FOMC meeting of the Monetary Policy Committee that the target range of the federal funds rate will remain unchanged at 3.50% to 3.75%. This result was no surprise, but the voting results showed that nine people were in favor of keeping interest rates unchanged, and three opposed this decision. This highlights the large differences within the Federal Reserve after Walsh took over as chairman. Walsh said that standing still is not policy inertia; the market can judge trends on its own based on economic signals. The meaning is to do nothing, and there is no forward-looking guidance; wait until there is a problem (such as inflation is actually too high) before making up for it. This actually contradicts Walsh's repeated emphasis in the two months since he took office that the Federal Reserve will never tolerate excessive inflation. It may seem dovish, but the market's feedback is hawkish. The 30-year US Treasury soared to 5.21%, the highest in 2007, and the three major US stock indexes collectively fell.
Walsh's vague statement, at the end of the day, also depends on AI. Interest rates will only be cut when inflation falls unless AI can push, and strong AI can tolerate even higher inflation. This is generally the idea.
Microsoft handed over a quarterly report card that was overall higher than Wall Street's expectations. Total revenue increased 18% year over year, EPS increased 23%, and was more than 10% higher than analysts' expectations. AI investment achieved results: Azure revenue increased by more than 40%, capital expenditure increased 70% year over year, but 3.5% lower than expected. Yesterday's trend rose first and then declined. Today, technology stocks continued to jump downward, and a collective panic ensued.
Even Zhongji Xuchuang (03308), which just went public today, did not stand up. The company sold 54,500,000 H shares globally, at HK$980.00 per H share, with net proceeds of HK$52,891 billion. The number of shares offered publicly in Hong Kong accounted for 10% of the number of shares offered globally, 16.84 times as many as subscribed; the number of shares offered internationally accounted for 90% of the shares offered globally, 9.73 times the number of shares subscribed. Subscriptions were active, but today it broke down and fell 2.04%. The main thing is that the timing was bad.
However, this is often a turning point. Looking at the source, South Korea is also actively bailing out the market. According to reports, the Korea Exchange is evaluating the possibility of “temporarily prohibiting short selling” and “reducing the limit on price increases and falls,” as one of the high-intensity measures to deal with the sharp decline in the stock market. The source said, “Currently, it has only been confirmed that it is technically possible.” Today, the A-share storage concept stock Demingli (001309.SZ) pulled up and down at an important bottom. Furthermore, according to the latest report, Microsoft added data center leases worth more than 130 billion US dollars last quarter, indicating that large technology companies' spending on artificial intelligence (AI) infrastructure is growing rapidly. It rose more than 9% in the premarket.
In today's climate, big capital continues to group bank stocks. The five major banks, Industrial and Commercial Bank (01398), Agricultural Bank (01288), Bank of China (03988), China Construction Bank (00939), and Bank of Communications (03328), all hit record highs. Institutions expect to cover banks' revenue and net profit to mother for the second quarter of 2026 to increase 6% and 4% year-on-year respectively. Revenue is slightly slower than in the first quarter, mainly due to uncertainty about other non-interest income. Looking ahead to the third quarter, the bank's interim reporting performance will continue to improve. The worse the macro, the greater the stability advantage of bank stocks. This is also an important reason why the trend of Hong Kong stocks is stable. Furthermore, Tencent (00700) mentioned yesterday is also a good target for steady growth, and continues to rise slightly today.
Automobile stocks continue to be popular. On July 29, the factory inspection and delivery ceremony for M6 users was solemnly held at the Chongqing Celis (09927) Gigafactory (Longxing). The Quanjie M6 pure electric Max+ is equipped with the Huawei Qiankun Smart Driving ADS Advanced Edition and the 896-line dual-optical path image-grade lidar. Prices have dropped to 22.98/249,800 yuan respectively. Compared with the original 2598-299,800 yuan four-wheel drive premium version, etc., the purchase threshold is significantly lower. It is expected that the commencement of delivery will contribute to the increase. Today's increase is over 7%.
Intelligent driving is also exciting. On July 30, Guo Shougang, director of the Equipment Industry Division I of the Ministry of Industry and Information Technology, revealed at the 2026 World Intelligent Connected Vehicle Conference media roundtable that since 2026, the penetration rate of passenger cars equipped with L2 class combined driving assistance functions in China has reached 70.5%. Zhejiang Shibao (01057): Intelligent steering can be applied to various types of vehicles. Electrohydraulic circulating ball steering has been used in heavy unmanned mining trucks; the company is the main supplier of electric circulation ball steering for new energy light trucks in China. The company supplies intermediate steering shafts for Xiaomi cars. The Xiaomi Pengcheng technology conference will be held at 19:00 on July 30. The technical architecture of the Xiaomi Kunlun will be fully analyzed, and the N90Max and N70Max two extended-range SUV models will be unveiled simultaneously. Today's increase is over 7%. One type of intelligent driving that cannot be circumvented is MOMENTA-W (06880): Yesterday, it was officially approved by the German Federal Motor Vehicle Transport Authority (KBA) to conduct L4 autonomous driving tests on urban roads throughout Germany. This is also the first time that a Chinese company has obtained an L4 test qualification covering urban roads across the country. SAIC's MG07, a mid-size pure electric coupe, began pre-sale. It went on sale in late August. It is equipped with the Momenta R7 World Model, which is up more than 7% today. The other one is Horizon (09660).
Note that individual stocks that have been transferred tend to be active. The purpose of transferring positions is to facilitate subsequent cash out or use as collateral for financing. Also, after deposit, shares can be used to finance foreign securities to increase the supply of short chips. In any case, equity performance will increase a lot. For example, on July 29, Anke Innovation (00668) experienced a position change. The total market value of the inventory was HK$349 million, accounting for 6.88%. The company's shareholders deposited 2.2768 million shares in Goldman Sachs (Asia) Securities, increasing their shareholding ratio by 4.39%. The stock officially entered the Hong Kong Stock Connect list on July 27. The company disclosed on the investor relations platform that the company's energy storage business continues to maintain a good development trend in the European market, and products related to its AnkerSolix brand are widely recognized by European consumers. Today's increase is over 10%.
Also, on July 29, SMORE International (06969) experienced position changes, with a total market value of HK$4.335 billion, accounting for 8.08%. The company's shareholders transferred 500 million shares to Citibank and 500 million shares from Hong Kong and Shanghai HSBC. The fundamentals are also favorable. The mandatory national standard “Heated Cigarettes” (draft for comments) was released on July 28. The consultation period ends on September 26, and it is planned to be officially implemented 6 months after publication. The agency estimates that the domestic HNB pilot project is expected to be launched in an orderly manner from the end of 2026 to 2027. Once domestic HNB is liberalized, a 100 billion incremental market will be created, rising more than 6% today; Huabao International (00336) and China Tobacco Hong Kong (06055), which are related concepts, have both increased by more than 6%.
Entering July, the beer industry ushered in the peak consumption season of the year, with the grand opening of the 36th Qingdao International Beer Festival. Recently, Tsingtao Brewery Co., Ltd. (00168) issued an announcement. The controlling shareholder and its co-actors intend to increase their holdings by no less than RMB 150 million (including capital) and no more than RMB 300 million (including capital). The number of A shares and H shares to be increased is based on the actual increase in holdings, which has risen by more than 3% today.
On July 27, Evergrande Property (06666) issued an announcement stating that following the original potential buyer's decision not to proceed with the transaction on June 25 this year, the relevant negotiations were terminated, and no legally binding agreement was signed, the liquidator had re-contacted “several potential buyers”, including all parties newly involved in the process as well as other parties that had participated before. The next step of the liquidator is to invite potential buyers to conduct due diligence on Evergrande Property Group. The recent decline is due to the last unsuccessful search for new buyers. The company's fundamentals are actually OK. By the end of 2025, Evergrande Property's cash and cash equivalents reached 4.189 billion yuan, an increase of 55.3% over the previous year. There were no bank loans, and the capital-to-debt ratio was zero. If net current assets remain positive in the mid-term report this year, then there is great hope that a deal will be reached. The funds are gambling to be successful, and today they have risen by more than 8%.
[Section Focus]
July 30 -- The inaugural meeting of the Quantum Information Standardization Technical Committee of the Ministry of Industry and Information Technology was held in Beijing on July 30. Ke Jixin, member of the party group and vice-minister of the Ministry of Industry and Information Technology, attended the meeting and delivered a speech. Comrades in charge of relevant departments and bureaus of the Ministry of Industry and Information Technology, representatives of members of the Quantum Information Standards Committee, and relevant industry experts attended the conference. The Quantum Information Standard Committee is mainly responsible for revising industry standards in the fields of quantum information basic common technology, quantum computing, quantum communication, and quantum precision measurement. The secretariat is located at the China Academy of Information and Communication Technology.
The establishment of the Standard Committee is significant. It will unify technical specifications, test standards, and interface agreements to accelerate the transition of quantum technology from laboratories to commercial bidding, government and enterprise procurement; it will benefit the standardization of the domestic industrial chain and domestic replacement in the long term.
Individual stocks related to Hong Kong stocks: Guofu Quantum (00290), China Telecom (00728).
[Individual Stock Mining]
Midea Group (00300): Continued bid for temperature-controlled procurement orders for mobile data centers, European demand for high-temperature catalytic air conditioning explodes
Midea Building has won the China Mobile Data Center temperature-controlled procurement order for many years in a row. In June, the company won the bid for China Mobile's new round of low pressure chiller collection projects from 2026 to 2028, winning 70% of this collection. Midea Group added nearly 200,000 new air conditioning orders for the European market in the past month. Among them, the Wuhu factory received urgent orders for 30,000 mobile air conditioners from French customers. It only took 7 days from order confirmation to first shipment.
Comment: Affected by continued extreme high temperatures in Europe, local demand for air conditioning has exploded. The company's air conditioners are in high demand in Europe, and overseas air conditioning orders continue to grow. Since this year, PortasSplit's sales volume has doubled compared to the full year of last year, and has shipped more than 200,000 units. In the first quarter of 2026, more than 500 million household appliances in all categories of Midea already have networking capabilities. More than 140 million smart appliances have been connected globally, connected to more than 150 million smart users, and completed the AI layout of more than 150 categories of household appliances. The company's technological transformation was successful, and from home appliances to technology groups, the three tracks of AI+ robotics+new energy were strong.
ToB explosion: Second curve at the 100 billion level. The growth rate is significantly higher than ToC, and the gross profit is higher. Two-wheel drive (ToC+ToB), ToC (67%): Air conditioning market share 35%; high-end brand COLMO+ Toshiba, with high-end revenue of 20 billion yuan + in 2025, accounting for more than 15%. ToB (33%, high increase): 2025 revenue of 122.8 billion yuan (+17.5%); 2026Q1 building technology 10.8 billion (+10.1%), robotics 8.2 billion (+11.8%). The company has a global layout, with 29 overseas R&D centers and 43 manufacturing bases, covering 50 countries; overseas revenue in 2025 was 195.9 billion yuan (+16%), accounting for 43%.
The whole industry chain: core components such as compressors, motors, and controllers are self-developed and produced. The cost is 10%-15% lower than that of peers, and the delivery cycle is short. Lighthouse factories: 6 (No. 1 in the home appliance industry). The Chongqing Building Technology Factory is the first full-process AI lighthouse factory in the global central air conditioning industry.
Robots: KUKA + self-developed humanoid robots are in hand with orders of 2 billion +, and 2026H2 is delivered centrally. New energy vehicle parts: orders of 5 billion +, supporting leading car companies.
AI + high-end: the penetration rate of AI appliances is 40% by 2026; COLMO stores are 2000+, and high-end revenue accounts for 20% +. The company's globalization deepened, OBM's own brand went overseas, and there was a surge in Southeast Asia, North America, and the Middle East. Midea Group's business has covered more than 200 countries and regions. Overseas and ToB businesses are growing strongly, and Midea Group's ToB business growth rate is expected to be higher than ToC business.
Recently, the first point of cooperation between Midea Group and Alibaba Group is to jointly build the core capabilities of whole-house intelligence, and carry out in-depth cooperation in the three directions of home AI brain, IoT ecosystem and lifestyle service scenarios, and popular smart hardware. The company has high dividends and large repurchases. The company's 100% return on net profit (dividends + buybacks), and an expected dividend rate of 1.95% in 2026. The company continued to repurchase large amounts of shares, strong profit growth, and an active shareholder return policy, which significantly boosted investor confidence. Affected by continued extreme high temperatures in Europe, local demand for air conditioners exploded. Midea's air conditioning sites in Wuhu and Guangzhou added a total of 200,000 new European orders in January. PortasSplit mobile split air conditioners have received more than 160,000 new orders since June.