Genuine Biotech Submits Hong Kong IPO Application Amid Push to Commercialize Azvudine

Overnight Foreign Market Review

U.S. Stocks Close Mixed on Thursday. The Market Continues to Focus on Fed Officials' Statements and the Possibility of the Fed Changing Its Aggressive Interest Rate Hike Policy Stance, While Awaiting Important Non-Farm Payroll Data Due on Friday. At Close, the Dow Jones Index Fell by 0.26%, the Nasdaq Composite Index Rose by 0.41%, and the S&P 500 Index Dropped by 0.08%.

Popular Chinese stocks generally rose, with Alibaba up 1.79%, JD.com up 3.63%, Pinduoduo up 3.24%, Bilibili up 2.42%, Baidu up 2.52%, and Missfresh up 51.69%. The "epic meme stock" AMTD Digital continued its sharp decline, closing down 27.27% on Thursday at $800 per share.

New York gold futures closed 1.7% higher on Thursday, reclaiming the $1,800 mark; U.S. WTI crude oil closed 2.3% lower on Thursday, falling below the $90 mark.

HSI Futures Night Session Closes at 20,201 Points, Up 0.30%.

Nikkei 225 Index Opens Down 17.14 Points, or 0.06%, at 27,915.06

Detailed market data is as follows:

HKEX Pre-Market Important News Summary

1. Real Bio Submits Application for Listing in Hong Kong

According to HKEX documents, Genuine Biotech Co., Ltd. has submitted an application for listing to the Hong Kong Stock Exchange, with CICC as the sponsor. The prospectus mentions that the company has its own production capabilities, with an annual capacity of approximately one billion Azvudine tablets. The company believes that the combination of its own and contracted production capacities will enable it to produce a sufficient quantity of Azvudine to meet market demand.

2. Alibaba's Q1 Results Exceed Expectations

Alibaba-SW (09988) announced its financial results for the quarter ended June 30, 2022, with revenue of RMB 205.55 billion, remaining stable year-over-year. Operating profit was RMB 24.943 billion, a year-over-year decrease of 19%. Net profit attributable to ordinary shareholders was RMB 22.739 billion, a reduction of approximately 50% year-over-year. Diluted earnings per share were RMB 1.06.

Alibaba said that in the quarter ended June 30, 2022, it repurchased approximately 38.6 million American Depositary Shares for about US$3.5 billion under the company's share repurchase program. The US$25 billion share repurchase program will become effective in March 2024.

3. China Evergrande: Returning the Land Use Rights of Guangzhou Evergrande Football Field Plot, to Receive a Refund of RMB 5.52 Billion in Land Transfer Fees

China Evergrande: On August 3, 2022, our Group signed a termination agreement with the assignee, according to which the original contract was terminated and our Group returned the land use rights of the Guangzhou Evergrande Football Field plot, while the assignee will pay a total of RMB 5.52 billion as refund of the land transfer fee.

4. GAC Group's July auto sales reach 220,100 units; Aion NEV sales increase by 138.27% year-on-year

GAC Group (02238.HK) Announces Production and Sales Express for July 2022: The company's automobile production in July 2022 was 233,621 units, a year-on-year increase of 42.69%, with cumulative production of 1,385,276 units for the year, a year-on-year increase of 18.89%; Automobile sales in July were 220,104 units, a year-on-year increase of 21.93%, with cumulative sales of 1,370,030 units for the year, a year-on-year increase of 13.50%.

In July, new energy vehicle sales reached 27,064 units, a year-on-year increase of 127.26%. From January to July, cumulative sales reached 140,399 units, a year-on-year increase of 121.25%. In July, GAC Aion's sales reached 25,033 units, a year-on-year increase of 138.27%. From January to July, cumulative sales reached 125,284 units, a year-on-year increase of 134.74%.

Focus on Today's Trading

New Share Activity:

Malaysia's Food and Beverage Distributor Shuang Cai Zhu Updates Post-Hearing Data Set

MultiThink Cloud Re-Files for HKEX Main Board Listing, Ranks Third in China's Content Marketing Services Market

CULines Submits Listing Application to HKEX Again; Company is a Leading Container Shipping Enterprise in China

Hong Kong Wisdom Acquisition Corporation Passes HKEX Listing Hearing; Sponsors Include Former President of Hong Kong Monetary Authority

Economic Calendar:

1. 9:30 RBA Monetary Policy Statement

2, 12:30 India Central Bank Interest Rate Decision

3, 20:30 U.S. July Seasonally Adjusted Nonfarm Employment Population

4, 20:30 US July Unemployment Rate

Earnings Announcement:

R&F Properties, Junyi Global Financial Group, Yangyu Technology, Junbaiyan Group, Rongfeng Group Asia, etc.

Company Announcement

Positive Announcement

InnoCare Pharma-B (09969) Expects Mid-Term Consolidated Revenue Growth of No Less Than 132.2%

BeiGene (06160) Q2 Revenue Reaches $341.6 Million, Up 127.7% Year-over-Year

Innovent Bio (01801) Reaches Multi-Project Strategic Cooperation and Licensing Agreement with Sanofi Group, to Receive 600 Million Euros in Premium Equity Investment

CK Hutchison (00001) Announces Interim Results, Profit of HKD 19.088 Billion, Up 4.31% Year-on-Year, Proposes Interim Dividend of HKD 0.84 Per Share

Cheung Kong Real Estate Group (01113) Announces Interim Results: Shareholders' Profit Attributable Amounts to HKD 12.936 Billion, Up 54.83% Year-on-Year; Dividend of 43 HK Cents Per Share

LV Xin Hydrocolloid (01084) Announces Profit Alert, Expects Mid-term Net Profit to Increase Significantly by 350% to 400%

DLP Holdings (01921): Breakthrough Progress in the Application of DLP-T4 Seamless Casing Products for Shale Gas Exploration and Development

China Silver Leasing (01606) Purchases Wastewater Treatment Equipment for 550 Million Yuan and Leases It Back, Earning Interest of Approximately 66.6738 Million Yuan

CSPC Pharmaceutical Group (01093): Phase III Clinical Study of Membrane Recovery® (rhTNK-tPA) for the Treatment of Acute Ischemic Stroke Meets Primary Endpoint

Far East Consortium (00035) Spends HKD 1.24 Billion to Acquire Land Development Rights in Western District, Hong Kong

Qilu Expressway (01576) Proposes to Invest 285 Million Yuan in Establishing a Partnership Enterprise for PPP Project Investments

China United Resources (00254) Announces Profit Alert, Expects Mid-Term Turnaround from Loss to Profit Year-on-Year

Shanghai Pharmaceuticals (02607): Changzhou Pharmaceutical Factory's Folic Acid Tablets First in China to Pass Generic Drug Quality and Efficacy Consistency Evaluation

Ferretti (09638) Releases Interim Results: Shareholder Profit Attributable to 29.608 Million Euros, Up Approximately 26.43% Year-on-Year

Chuang Hui Jewellery (08537) Announces Profit Alert, Expects to Turn Loss into Profit in Q1 to Approximately HKD 1.5 Million

One Lighting (08222) Announces Profit Alert, Expects Q1 Net Profit of No Less Than HKD 200 Million

Lihuá Holdings Group (01346) Announces Profit Alert, Expects Net Profit of Approximately US$4.7 Million to US$5.3 Million for the First Half of the Year

Negative Announcement

Iron Ore (01029) Issues Profit Warning, Expects Shareholders' Profit Attributable for the First Half of the Year (Excluding Asset Impairment) to Be US$30 Million to US$40 Million

MGM China (02282) Announces Interim Results: Shareholders' Loss Attributable to 2.404 Billion HKD, Up 38.7% Year-on-Year

WAI KEE HOLD(00610) Issues Profit Warning, Expects Mid-Term Net Profit of Approximately HKD 4 Million, Decreasing by 97% Year-on-Year

Shenwan Hongyuan Hong Kong (00218) Issues Profit Warning, Expects Consolidated After-Tax Loss of HKD 120 Million to HKD 125 Million for the First Half, Turning from Profit to Loss Year-on-Year

North Asia Strategy (08080) Releases First Quarter Results, Shareholder Loss of HK$24.591 Million, Turning from Profit to Loss Year-over-Year

FUTURE DATA(08229) Announces Interim Results: Shareholders' Loss of HKD 8.57 Million, Turning from Profit to Loss Year-on-Year

Singularity International (01280) Releases Mid-term Results, Shareholder Loss of 31.775 Million Yuan, Up 21.6% Year-on-Year

COFCO Joycome (01610) Issues Profit Warning, Expects Owner's Share of Loss After Mid-term Fair Value Adjustment of Biological Assets to be Approximately RMB 460 Million

Cornerstone Financial (08112) Issues Profit Warning, Expects Mid-Term Shareholder Loss of Approximately HKD 17 Million

1957 & CO.(08495) Releases Mid-term Results, Shareholder Loss of HKD 8.233 Million, Turning from Profit to Loss Year-over-Year

Capital Financial Holdings (08239) Issues Profit Warning, Expects Shareholders' Loss for the First Half to Increase by Approximately 194% Year-on-Year

China Nonferrous Metals Mining (01258) Issues Profit Warning, Expects Approximately US$195 Million in Shareholder Profit for H1, Down 18% Year-on-Year

Victory Securities (08540) Announces Interim Results, Shareholders' Loss Attributable to HKD 4.7395 Million

Dacheng Food (03999) Releases Mid-Term Results: Shareholders' Profit Attributable Decreased by 52.6% to 33.802 Million Yuan

Victory Harbour Environmental Technology (01845) Issues Profit Warning, Expects Mid-Term Net Loss of Approximately RMB 25.7-29.7 Million

ANE Logistics (09956) Issues Profit Warning, Expects Loss in First Half Performance

Tianbao Energy (01671) Issues Profit Warning, Expects Shareholders' Loss of Approximately RMB 9.2 Million for the First Half, Turning from Profit to Loss Year-over-Year

Eternity Medical (01612) Issues Profit Warning, Expects Mid-Term Net Loss of HKD 40-45 Million

Other Announcements

TSL Jewellery (00417) Invests HKD 84.95 Million in Construction Contract for Panyu District Land Development Project

Standard Chartered Group (02888) Proposes to Issue US$1.25 Billion Fixed-Rate Reset Perpetual Subordinated Contingent Convertible Securities

Xinyi Storage (08328) Proposes Rights Issue on "10-for-1" Basis, Raising up to Approximately HKD 393 Million Net

China Merchants Group (01719) Controlling Shareholder Hubei Port Plans to List the Transfer of Up to 22% of the Company's Equity

Daling Group (00211) Resumes Trading on August 5 After Potential Offeror Zhang Zhicheng Acquires 30,623,200 Shares

Minfu International (08511) Major Shareholder Yuan Ying Capital Plans to Sell Up to 13.1% of Company Shares

Huzhou Gas (06661) Partial Exercise of Over-Allotment Option, Stabilization Price Action and End of Stabilization Period

Chuanglian Holdings (02371) Subsidiary Proposes to Sell Entire Issued Share Capital and Loans of Shengfu Global for HKD 43 Million

Fuying Global Group (01620) Proposes to Sell 50% Stake in Joint Venture Company Triplabs (BVI) Limited

China Overseas Development (00688) Accumulated Contract Property Sales of Approximately 155.97 Billion Yuan in the First 7 Months, Down 32.2% Year-on-Year

WeCash (02003) Expects Adjusted Consolidated Net Profit for the First Half of the Year to Be No Less Than RMB 325 Million

Bay Area Development (00737) Releases Mid-term Results: Net Profit Drops 38% Year-on-Year to 177 Million Yuan, Dividend of 5.75 Cents per Share

Yuexiu Property Trust Fund (00405) Releases Mid-term Results, Distributable Mid-term Amount of 343 Million Yuan, a Year-on-Year Increase of 0.8%

Analysis of Hong Kong Stock Market Trends

CISI believes that liquidity remains a constraint, with only about 90 billion yuan in trading volume yesterday. It is expected that before the end of the US dollar interest rate hike, the weak Hong Kong dollar exchange rate and interest rate arbitrage capital outflow caused by interest rate differentials will continue to limit the overall market trend. However, the market is also gradually adapting to the medium- and short-term situation of reduced trading volume.

In addition to interest rates, the significantly compressed valuation of Hong Kong stocks can also offset some of the negative impacts from the interest rate differential. Moreover, under the risk of a U.S. economic recession, the internal pressure for an aggressive dollar rate hike is actually considerable. Last year, the Federal Reserve mistakenly judged inflation as temporary; let's see how the theory of prolonged inflation plays out this year.

The market is still in the process of recovery in the short term. The chips collected at a low position can be held for a while, and profits can be locked in after accumulating a certain increase. The resistance level for the Hang Seng Index is between 20,600 and 21,000 points.

HKEX Major Rating

BofA: Swire Properties' Hong Kong mall business is recovering, rated "Buy"

Daiwa: Expects Autohome to Resume Profit in the Second Half, Reiterates Target Price at HK$90

Citi: Macau September Gambling Revenue Expected to Rise to MOP 40 Billion, Maintains Bullish Stance on Gaming Stocks

CITIC Securities: Reiterates "Buy" Rating for Xinyi Glass (00868.HK) with Target Price of HKD 20

Citi: Reiterates "Buy" Rating for BYD Company (01211.HK) with Target Price of HKD 640

Review of Hong Kong Stock Market Performance Yesterday

Yesterday, the Hong Kong stock market fluctuated and strengthened. On the market, technology and internet stocks generally rose, with Bilibili up nearly 6%, JD.com and Alibaba up over 5%, Xiaomi Corporation and Baidu up over 4%; the chip semiconductor sector remained strong, Apple concept stocks surged, medical device stocks were active, SaaS concept stocks generally rose, and some shipping stocks fell.

In terms of focus stocks, Ascletis Pharma significantly surged, with an initial increase of over 11%, and finally closed up by 3.31%. In terms of news, the IND application for the company's COVID-19 oral candidate drug, the polymerase (RdRp) inhibitor ASC10, has been accepted by the National Medical Products Administration. Additionally, the drug has received FDA approval to conduct Phase Ib clinical trials in patients with mild to moderate COVID-19.

BYD Electronics rose 9.5%. Recently, BYD Precision Manufacturing Co., Ltd., a wholly-owned subsidiary of BYD Electronics, obtained the "Production Enterprise License for Tobacco Monopoly (Electronic Cigarette Contract Manufacturing Enterprise)" issued by the State Tobacco Monopoly Administration.

Geely Auto Continues to Rise by 3.64%. Insiders Claim That Based on Previous Monthly Data Disclosure Times, Geely Auto Will Likely Announce July Sales Data on August 7. Judging from Zeekr's Sales, Geely Auto’s July Sales Figures Will Be Impressive.

WuXi Biologics rose 4.32%. In terms of news, WuXi Biologics announced today that it has reached a strategic cooperation with AstraZeneca (AZN.US) for the localized production of the COVID-19 preventive neutralizing antibody combination drug Evusheld (Tixagevimab and Cilgavimab).

Aobo Holdings Plummets 12.1%; Company Announced Last Night a Proposed Rights Issue of 1.42 Billion to 1.457 Billion Shares at a Ratio of 1 New Share for Every 4 Existing Shares, Representing Approximately 20% of the Enlarged Issued Share Capital. The Subscription Price per Share is HK$2.08, a 33.8% Discount to the Last Trading Day.

Yesterday's Southbound Fund Dynamics

Southbound funds net inflow was HKD 9.67 billion yesterday. Regarding Shanghai-Hong Kong Stock Connect, Tencent Holdings was net bought for HKD 2.21 billion, and China Mobile was net bought for HKD 1.66 billion. Regarding Shenzhen-Hong Kong Stock Connect, China Mobile was net bought for HKD 4.54 billion, and Tencent Holdings was net bought for HKD 3.85 billion.

Note:

"South" refers to geographical location; Hong Kong is south of Shenzhen and Shanghai. Southbound funds refer to the capital used by mainland Chinese investors to buy and sell Hong Kong market stocks through Stock Connect.