Hot Trades in Hong Kong Stocks (8.14) | Hang Seng Index Hits Four-Year High at Opening, Morgan Stanley Says Foreign Capital Accelerated Inflows into Chinese Stock Market in July

Tencent Q2 Net Profit Up 17% YoY, Beating Expectations

The Hang Seng Index opened 0.6% higher today, hitting a nearly four-year high. $TENCENT(00700.HK) opened at HKD 600, continuing to set a four-year high, with multiple institutions including Goldman Sachs and Morgan Stanley raising their target prices. Goldman Sachs noted that Tencent recorded its fastest revenue growth in four years and its highest gross margin ever in Q2, confirming its advantage as a core leader in China's internet sector.

$TENCENT(00700.HK)

$Tencent(TCEHY.US)

$Interactive Media and Services(20232.HK) View related industry stocks

Recently, Morgan Stanley stated that in July this year, foreign capital accelerated its inflow into the Chinese stock market, and the trend may further pick up after summer due to regulatory efforts to improve shareholder returns, attractive valuations of Chinese stocks, and rising expectations of U.S. interest rate cuts, attracting more investors. The report noted that long funds injected $2.7 billion into the Chinese stock market in July, further accelerating from the $1.2 billion net inflow in June. Investing in the Hong Kong stock market via ETFs:

$CSOP HS TECH(03033.HK)

$XL2CSOPHSTECH(07226.HK)

$FL2 CSOP HSI(07200.HK)

$FI2 CSOP HSI(07500.HK)

$XI2CSOPHSTECH(07552.HK)

Accelerated Localization of Chips

Chip stocks led gains in early trading. The Cyberspace Administration of China's talks with companies over Nvidia's chip security vulnerabilities continue to unfold, with concerns over the 'backdoor' risks of U.S. chips. Founder Securities emphasized strong confidence in the two major directions of semiconductor self-sufficiency and edge AI. Although domestic AI chips are still catching up, with continuous product iterations and gradual improvement in supply chain capabilities, market share is expected to rise.

$SMIC(00981.HK)

$HORIZONROBOT-W(09660.HK)

$HUA HONG SEMI(01347.HK)

$Semiconductors(20245.HK) View related industry stocks

Catalyst for Insurance Sector

$PING AN(02318.HK) increased its stake in $CPIC(02601.HK) H-shares by approximately 1.74 million shares, raising its holding to 5.04% and triggering a disclosure requirement. This marks the first instance of insurers cross-holding stakes in six years, signaling confidence boost for the industry. Huatai Securities pointed out that listed insurers' total dividends for 2024 have increased year-on-year, highlighting their high-dividend attributes.

$CPIC(02601.HK)

$CHINA TAIPING(00966.HK)

$ZA ONLINE(06060.HK)

$SUNSHINE INS(06963.HK)

$NCI(01336.HK)

$Life and Health Insurance(20230.HK) View related industry stocks

Cryptocurrency Concept Stocks Surge

Bitcoin broke through $124,000, setting a new all-time high, while Ethereum approached its peak. Policy tailwinds continue: Bitcoin has been steadily rising thanks to the friendly legislative environment in Washington under U.S. President Trump. Last week, the Trump administration proposed allowing 401(k) pension plans to allocate to cryptocurrencies, driving potential demand expansion and boosting related Hong Kong-listed stocks. Hong Kong-listed cryptocurrency concept stocks and ETFs continued to rise, with $SINOHOPE TECH(01611.HK) surging over 25% at one point, and $OKG TECH(01499.HK) up 5.18%.

$OKG TECH(01499.HK)

$GUOTAI JUNAN I(01788.HK)

$SINOHOPE TECH(01611.HK)

$LINEKONG(08267.HK)

$GRANDSHORES(01647.HK)

Pharma Stocks Break Through in Profits

Hong Kong-listed pharmaceutical stocks continued to strengthen, with $XTALPI(02228.HK) rising over 11% again, as it expects H1 revenue to surge 387% YoY to RMB 500 million, marking its first half-year profit of RMB 50 million. Jingtai Holdings announced in June a strategic cooperation agreement with U.S. biopharma company DoveTree to use its AI + robotics drug discovery platform to develop candidate drugs in oncology and immunoinflammation.

$XTALPI(02228.HK)

$REMEGEN(09995.HK)

$AKESO(09926.HK)

$INNOCARE(09969.HK)

$BEONE MEDICINES(06160.HK)

$INNOVENT BIO(01801.HK)

$WUXI BIO(02269.HK)

$Life Sciences Tools and Services(20268.HK) View related industry stocks

On individual stocks, $EAST BUY(01797.HK) surged over 12% in early trading again. Guosen Securities noted that in the current consumer market competition, companies with high-cost-performance products and mature membership systems stand out, and the recent adjustments to its live-streaming e-commerce strategy have gained market recognition.