Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Thematic (Sector/Industry)

<ul><li>The HSI closed at 25,182, up 176 pts or 0.7%, recovering losses from the previous sessions as improved risk sentiment followed a tentative agreement between the US and Iran to extend their ceasefire by 60 days, easing concerns over potential supply disruptions in the Middle East.</li><li>SSEC/SZSE/GEI moved by -0.73%/-1.81%/-2.11%, as investor sentiment was cautiously optimistic over an extended ceasefire agreement between the US and Iran.</li><li>On the market, the consumer sector collectively strengthened, with liquor, beer, and retail sectors leading the gains, and stocks like Jiugui Liquor (000799 CH) hitting the daily limit.</li></ul>

The HSI closed at 25,182, up 176 pts or 0.7%, recovering losses from the previous sessions as improved risk sentiment followed a tentative agreement between the US and Iran to extend their ceasefire by 60 days, easing concerns over potential supply disruptions in the Middle East.SSEC/SZSE/GEI moved by -0.73%/-1.81%/-2.11%, as investor sentiment was cautiously optimistic over an extended ceasefire agreement between the US and Iran.On the market, the consumer sector collectively strengthened, with liquor, beer, and retail sectors leading the gains, and stocks like Jiugui Liquor (000799 CH) hitting the daily limit.

Equity Bottom-Up

Innovent Biologics is a biopharmaceutical company that discovers, develops, manufactures, and commercializes innovative medicines. The company focuses on therapeutic areas including oncology, autoimmune, cardiovascular and metabolic, and ophthalmology diseases, with 18 products currently on the market. Innovent Biologics was founded in 2011 and is headquartered in Suzhou, Jiangsu, China.

<ul><li>Hong Kong market commentary</li><li>A-share market commentary</li><li>Innovent entered into a strategic global licensing and collaboration agreement with Pfizer for up to US$10.5bn</li></ul>

Hong Kong market commentaryA-share market commentaryInnovent entered into a strategic global licensing and collaboration agreement with Pfizer for up to US$10.5bn

Macroeconomics

<ul><li>The HSI closed at 25,328, down 271 pts or 1.06%, with full-day turnover reaching HKD320.8bn, marking the lowest closing level since early April amid weakness in energy, technology services, and property stocks.</li><li>On the data front, China's industrial profits surged 24.7%, the biggest gain since November 2023, after a 15.8% growth in March, despite domestic headwinds and heightened global uncertainty.</li><li>SSEC/SZSE/GEI moved by -1.25%/-0.88%/+0.07%, wiping out gains from the earlier session as profit-taking pressure emerged amid strong economic data.</li></ul>

The HSI closed at 25,328, down 271 pts or 1.06%, with full-day turnover reaching HKD320.8bn, marking the lowest closing level since early April amid weakness in energy, technology services, and property stocks.On the data front, China's industrial profits surged 24.7%, the biggest gain since November 2023, after a 15.8% growth in March, despite domestic headwinds and heightened global uncertainty.SSEC/SZSE/GEI moved by -1.25%/-0.88%/+0.07%, wiping out gains from the earlier session as profit-taking pressure emerged amid strong economic data.

Hua Hong Semiconductor / Equity Bottom-Up

Hua Hong Semiconductor Limited manufactures semiconductors wafer foundry services. The Company produces embedded non-volatile memory, power discrete, analog, power management, and logic RF products. Hua Hong Semiconductor provides products for consumer electronics, communications, computing, industrial, and automotive fields.

<ul><li>The HSI finished at 25,606, up 219 points or 0.86%, with total turnover at HKD281.3bn, recovering from the previous session’s losses and tracking overnight gains on Wall Street and boosted sentiment amid hopes for a potential US-Iran agreement to end the conflict.</li><li>Huawei Technologies said its advanced chips could achieve transistor densities comparable to 1.4-nanometre technology within five years, highlighting Beijing’s push to strengthen its semiconductor capabilities.</li><li>On the market, Huawei released its semiconductor strategy, triggering a surge in the semiconductor and memory chip sectors, with multiple stocks, including Hua Hong Semiconductor (688347 CH), hitting their daily limit.</li></ul>

The HSI finished at 25,606, up 219 points or 0.86%, with total turnover at HKD281.3bn, recovering from the previous session’s losses and tracking overnight gains on Wall Street and boosted sentiment amid hopes for a potential US-Iran agreement to end the conflict.Huawei Technologies said its advanced chips could achieve transistor densities comparable to 1.4-nanometre technology within five years, highlighting Beijing’s push to strengthen its semiconductor capabilities.On the market, Huawei released its semiconductor strategy, triggering a surge in the semiconductor and memory chip sectors, with multiple stocks, including Hua Hong Semiconductor (688347 CH), hitting their daily limit.

<ul><li>The HSI opened up 448 points but pared gains during the session and once turned negative near the close.</li><li>SSEC/SZSE/GEI moved by -1.52%/-2.14%/-2.16%, pulling back from multi-year highs reached in the previous session as investors booked profits and closely watched a high-stakes meeting between Presidents Donald Trump and Xi Jinping.</li><li>On the market, pork-related stocks strengthened, with Tech-Bank Food (002124 CH), Huatong Meat Products (002840 CH), and many others hitting their daily limit; liquor stocks rose during the session, with Huangtai Wine-Marketing Industry (000995 CH) surging over 7%.</li></ul>

The HSI opened up 448 points but pared gains during the session and once turned negative near the close.SSEC/SZSE/GEI moved by -1.52%/-2.14%/-2.16%, pulling back from multi-year highs reached in the previous session as investors booked profits and closely watched a high-stakes meeting between Presidents Donald Trump and Xi Jinping.On the market, pork-related stocks strengthened, with Tech-Bank Food (002124 CH), Huatong Meat Products (002840 CH), and many others hitting their daily limit; liquor stocks rose during the session, with Huangtai Wine-Marketing Industry (000995 CH) surging over 7%.