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Ivan, a reporter from China Fund News

On July 24, the three major Hong Kong stock indexes continued their decline yesterday and closed down again today. As of the close, the Hang Seng Index fell 0.91% to 17,311.05 points, and the Hang Seng Technology Index fell 1.52% to 3,491.2 points, both hitting three-month lows; the Hang Seng China Enterprises Index fell 0.85% to 6,142.32 points.

On the market, large technology stocks fell collectively, Meituan fell 5.6% during the day and closed down 4%, Xiaomi, JD.com, Kuaishou, Tencent, and Baidu all fell, but NetEase rose more than 4% against the trend. Semiconductor chip stocks fell, Hua Hong Semiconductor continued to fall 3%, and SMIC fell nearly 2%; in terms of consumption, Nongfu Spring fell more than 7% and led the blue chips, beer stocks fell significantly, and China Resources Beer fell more than 6%; auto stocks fell collectively, new energy vehicles fell the most, "Wei Xiaoli" fell, Xiaopeng Motors fell more than 5%, Weilai and Li Auto fell more than 4%; real estate stocks fell, Vanke fell more than 6%, Longfor Group fell more than 4%, and China Resources Land fell more than 2%.

On the other hand, power stocks rose against the trend, with CGN Power leading the gains with a 5.67% increase; infrastructure stocks were strong, with CRRC Corp. rising 3.46%. In terms of individual stocks, MicroPort Brain Sciences rose more than 7%, with an estimated mid-term net profit growth of about 124% to 158%.

Electricity stocks rose against the trend

On July 24, the Hong Kong stock market fell, but power stocks rose against the trend. As of the close, CGN Power rose 5.67%, Datang Renewables rose 4.90%, China Resources Power rose 4.16%, China Power rose 3.56%, Huaneng International Power Co., Ltd. rose 1.87%, and Power Industry rose 1.36%.

On the news front, according to the "Electricity Mid-Year Update" report released by the International Energy Agency (IEA) recently, global electricity demand is growing at the fastest rate in nearly 20 years. The IEA predicts that global electricity demand will grow by 4% in 2024, the highest level since 2007 (excluding the abnormal rebound after the global financial crisis in 2010 and the collapse of demand caused by the COVID-19 pandemic in 2021). The strong growth in global electricity demand will continue until 2025, when the growth rate will still reach about 4%.

The report pointed out that the reasons for the surge in global electricity demand include warmer weather and strong economic growth, especially in China, India and the U.S. China's electricity demand growth rate this year will also exceed 6% due to strong activities in the service industry and various industrial sectors including clean energy manufacturing.

The 470 billion gaming giant surged nearly 5%

On July 24, gaming giant NetEase-S led the blue chips. As of the close, NetEase-S closed up 4.57% at HK$148.8, with a turnover of HK$1.232 billion and a latest total market value of HK$479.844 billion.

On the news front, NetEase's "Naraka: Bladepoint" mobile game will start public testing tomorrow (July 25), and the number of reservations has exceeded 40 million. HSBC Research expects the total revenue of the mobile game in the third quarter to reach 2.4 billion yuan, and the revenue in the first 12 months to reach about 11 billion yuan.

JPMorgan released a research report saying that NetEase is expected to start its busiest release month this year, and will launch three highly anticipated games in July 2024: "Naraka: Bladepoint Mobile" (July 25), "Yanyun Sixteen Sounds" PC version (July 26), and "Seven Days World" (global release on July 10). The release of these new games should accelerate the growth of game revenue in the second half of 2024 and drive the stock price up from the current level. The bank said that recent research on the PC version of "Fantasy Westward Journey" also showed that in-game monetization has stabilized, which will ease investors' concerns about the revenue trend of old games. ‍ ‍ ‍ ‍

Editor: Captain

Audit: Wooden Fish

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