Daily focus：Longyuan Power（916）
New energy power generation performed strongly in May, with wind and solar power generation increasing by 8.7% and 74.8% year-on-year, respectively, mainly driven by newly added capacity. However, wind power utilization hours slightly declined, indicating that the growth did not come from improved efficiency. Looking ahead, as China’s largest wind power operator, its growth momentum stems from continued capacity expansion under the national carbon neutrality goal. The company is actively developing grid parity projects that do not require subsidies, which helps improve returns and stabilize cash flow. With the complete divestment of coal-fired assets, the business is now more focused on renewable energy, laying the foundation for its long-term value.
China and the United States held the first meeting of the China-US trade talk in London, UK
Investors are closely monitoring the progress of China-US economic and trade talks in London, anticipating that the negotiations could improve the global economic outlook. On June 9th local London time, China and the United States began holding the first meeting of the China-US Economic and Trade Consultation Mechanism in London, UK. Additionally, investors will be focusing on the latest Consumer Price Index (CPI) data to be released on Wednesday. Regarding yesterday’s released data, the New York Federal Reserve’s Consumer Expectations Survey showed that respondents’ inflation expectations for the next year dropped significantly to 3.2%, declining by 0.4 percentage points from April. Both three-year and five-year inflation expectations also showed improvement.
Southbound Stock Connect recorded a net inflow of HKD 720 million on Friday. Among the stocks, Innovent Biologics (1801) saw the largest net inflow of HKD 1.12 billion, followed by Meituan (3690). On the other hand, Tencent (700) recorded the largest net outflow of HKD 2.14 billion, followed by Xiaomi Group (1810).
China-US negotiations will continue on Tuesday, with the US hinting at relaxing some controls in exchange for rare earths. The Hang Seng Index opened 50 points higher at 24,231 points, and closed down 18 points or 0.08% at 24,163 points; the National Index fell 13 points or 0.1% to 8,767 points; the Hang Seng Technology Index fell 41 points or 0.7% to 5,392 points. The total market turnover for the day was 250.3 billion HKD. Innovative drug stocks performed well, with Akeso (9926) rising 10.4% to HK$96.3 and Innovent Biologics (1801) rising 2.6%.
Source: KGI Investment Products and Solutions Department
The materials contained herein are provided by KGI Asia Limited ("KGI") for information only. While such materials are based on or derived from sources believed to be reliable, KGI makes no representation or warranty (express or implied) as to their accuracy or reliability. Neither the information nor the opinions expressed herein constitute, or are to be construed as, an offer or invitation or solicitation of an offer to buy or sell any securities or investments. KGI and its officers, employees, agents and affiliates may have interests in the securities or investments covered herein and accept no liability whatsoever for any loss or consequence whatsoever (whether direct or indirect) resulting from any use of or reliance by you on such materials.
Trump’s erratic tariff policies have weighed on the U.S. economy, with signs of a labor market slowdown emerging. OECD recently lowered its U.S. GDP growth forecasts for both this year and next to ...