Interest Rate Update:
Hong Kong’s 1-Month HIBOR climbed to 1.17482%, a 1-month high, while Overnight HIBOR dipped to 0.12095%, according to HKAB.
China’s Economic Outlook:
US:GS:Goldman Sachs
Goldman Sachs raised China’s 2025 and 2026 GDP forecasts following a strong Q2 GDP and export momentum, projecting 2H25 growth to moderate to 4.3%.
US:MS:Morgan Stanley
Morgan Stanley increased its 2025 China GDP forecast to 4.8% from 4.5%, driven by export resilience and early fiscal stimulus.
E-commerce Rivalry:
HK:3690.HK:MEITUAN-W, US:BABA:BABA-W
MEITUAN-W is reportedly stepping up efforts to counter BABA-W’s Taobao Instant Commerce business.
US Treasury Developments:
U.S. Treasury Secretary confirmed a positive outlook for U.S.-China trade talks and plans to meet with China’s He Lifeng in August, possibly in a third country.
Regulatory Update in E-commerce:
China’s State Administration for Market Regulation (SAMR) pledged to crack down on livestream e-commerce violations, tightening oversight of online retail platforms.
U.S. Treasury Secretary Scott Bessent stated the process for selecting the next Fed Chair has begun, confirming Jerome Powell will step down after May 2026.
Trump also indicated tariffs on drugs may be introduced as early as end-July, stoking market concerns.
Donald Trump named Scott Bessent as a potential Federal Reserve Chair candidate and called for an aggressive 3% interest rate cut.
HK:01211.HK:BYD COMPANY, HK:00175.HK:GEELY AUTO, HK:09863.HK:LEAPMOTOR
CLSA reported a pullback in orders for China’s top three mass-market automakers but expects sustained strong sales cycles.
HK:00175.HK:GEELY AUTO, US:ZK:Zeekr
BofA Securities views GEELY AUTO’s full acquisition of Zeekr positively, maintaining a “Buy” rating and HKD 21.6 target price.
US:NVDA:Nvidia, US:BABA:BABA-W, HK:0700.HK:TENCENT, HK:9888.HK:BIDU-SW
Morgan Stanley called the expected resumption of Nvidia H20 chip sales to China a key positive for BABA-W, TENCENT, and BIDU-SW.
US:GDS:GDS Holdings
Citi and JPM both expect GDS to benefit from the resumed H20 chip supply, citing stronger revenue and EBITDA prospects.
HK:9992.HK:POP MART
Morgan Stanley, JPMorgan, BofA Securities, and Citi all raised their target prices on POP MART, now ranging from HKD 330 to 384.5, citing strong interim results and continued momentum.
US:JD:JD HEALTH
Morgan Stanley increased revenue and profit estimates for JD HEALTH, with a revised target price of USD 46.
HK:9618.HK:JD.com
JD’s food delivery arm plans to inject RMB 2B to enhance rider benefits.
HK:9888.HK:BIDU-SW, US:UBER:Uber
BIDU-SW jumped 4.5% after partnering with Uber to globally deploy driverless cars. Morgan Stanley highlighted their alignment with an asset-light strategy. Uber also responded positively to Hong Kong’s proposed ride-hailing regulations, despite concerns on vehicle caps.
HK:1177.HK:SINO BIOPHARM
Shares rose over 5% after clarifying that its collaboration between LaNova Medicines and Merck & Co. is progressing smoothly.
HK:6680.HK:JF SMARTINVEST
JF SMARTINVEST gained 3.6% following a top-up share placement priced at a 6% discount.
HK:GUOQUAN
GUOQUAN surged nearly 15% on optimistic interim net profit expectations.
MiniMax, SmartMore
AI startup MiniMax has filed for a Hong Kong IPO, while SmartMore, reaching mid-sized firm headcount, also prefers HK for listing.
US:AAPL:Apple
UBS expects Apple to release a foldable iPhone next year, priced around USD 1,800.
HK:0883.HK:CNOOC
CNOOC announced a major exploration breakthrough in deepwater plays of the South China Sea, marking a significant energy development milestone.
HK:2404.HK:DMALL
Trading in shares of DMALL was suspended this morning. No specific reason has yet been disclosed.
HK:0005.HK:HSBC HOLDINGS
HSBC repurchased over 4 million shares yesterday, totaling approximately HKD 390 million in buyback value.
US:BABA:Alibaba
Ele.me and Alipay, both under Alibaba, launched a RMB 10 billion merchant support initiative, signaling stronger platform backing for SMEs.
US:BABA:Alibaba, US:GDS:GDS Holdings, US:KC:Kingsoft Cloud
ADRs of Alibaba and GDS Holdings surged 8%, while Kingsoft Cloud’s ADRs soared 19%, reflecting investor confidence in Chinese tech abroad.
Oil:US:UCO
China announced cuts in refined oil prices from this morning, expected to impact energy markets and transportation sectors.
Thank you
