Signs of hope for an end to the Middle East conflict emerge as the Hang Seng Index sees a strong rebound on the first trading day of April, rising 505 points. Precious metals and biotech stocks lead the market rally. For those optimistic about future prospects, consider monitoring the E Fund Biomedical ETF.

Iranian President Masoud Pezeshkian has clearly expressed Iran's willingness to end the war, stating that Iran is prepared to end hostilities under the condition it is not attacked. This indicates a significant ray of hope for the Middle East conflict. Global stock markets surged collectively today, with South Korea’s KOSPI skyrocketing over 8%, Japan’s Nikkei climbing more than 4%, and Taiwan’s stock market rising over 4%. On the first trading day of April, Hong Kong stocks opened with a gap up of 569 points. The gains once narrowed to 415 points but found support at the lows. The lowest point for the day was 25,203 points. In the afternoon, the market moved upward again, rising over 600 points at its peak to reach 25,429 points. Ultimately, the market closed at 25,294 points, up 505 points or 2.04%, reclaiming the 25,000 level with the largest single-day gain in over a week. Trading volume reached HKD 291.4 billion. The Hang Seng Tech Index closed at 4,756 points, up 106 points or 2.29%. The China Enterprises Index settled at 8,504 points, increasing by 130 points or 1.56%. Among blue chips, 83 rose while only seven fell. Southbound capital swiftly cashed out amid improving market conditions, resulting in net outflows of nearly RMB 12.7 billion for the day.

Expectations of a ceasefire in Iran have reignited hopes of interest rate cuts, with the precious metals sector taking center stage and leading the rally. Luoyang Molybdenum ( $CMOC (03993.HK)$ ) rose by HKD 1.35 or 8.39% to close at HKD 17.45, making it the best-performing blue chip of the day. Laopu Gold ( $LINGBAO GOLD (03330.HK)$ ) climbed HKD 2.7 or 10.47% to close at HKD 28.5. Zijin Mining ( $ZIJIN MINING (02899.HK)$ ) rose by 2.04 yuan or 5.94%, closing at 36.4 yuan; Laopu Gold ( $LAOPU GOLD (06181.HK)$ ) increased by 25 yuan or 4%, closing at 650.5 yuan; China Silver ( $CHI SILVER GP (00815.HK)$ ) rose by 0.025 yuan or 5.3%, closing at 0.495 yuan.

Biotech and pharmaceutical stocks surged comprehensively after half a year. Reports indicate that the American Association for Cancer Research (AACR) annual meeting will be held from April 17 to 22, with the market expecting significant results to be unveiled. China Biologic Products ( $SBP GROUP (01177.HK)$ ) surged by 0.47 yuan or 7.98%, closing at 6.36 yuan; BeiGene ( $BEONE MEDICINES (06160.HK)$ ) rose by 13.4 yuan or 7.81%, closing at 185 yuan; Innovent Bio ( $INNOVENT BIO (01801.HK)$ ) increased by 6 yuan or 7.07%, closing at 90.9 yuan; CSPC Pharma ( $CSPC PHARMA (01093.HK)$ ) rose by 0.52 yuan or 5.71%, closing at 9.62 yuan; Wuxi Bio ( $WUXI BIO (02269.HK)$ ) increased by 1.84 yuan or 5.57%, closing at 34.86 yuan; Hansoh Pharma ( $HANSOH PHARMA (03692.HK)$ ) rose by 1.94 yuan or 5.47%, closing at 37.42 yuan; Wuxi Apptec ( $WUXI APPTEC (02359.HK)$ ) rose by 6.4 yuan or 5.45%, closing at 123.9 yuan; Ascentage Pharma ( $ASCENTAGE-B (06855.HK)$ ) rose by 6 yuan or 13.04%, closing at 52 yuan; 3SBio ( $3SBIO (01530.HK)$ ) rose by 2.68 yuan or 11.84%, closing at 25.32 yuan; RemeGen (9995) rose by 14.6 yuan or 15.24%, closing at 110.4 yuan.

Auto and battery stocks strengthened in the afternoon after China’s Ministry of Industry and Information Technology (MIIT) announced plans to organize the formulation of a new battery development plan for the '15th Five-Year Plan,' reaffirming efforts to address industry homogenization and internal competition issues. Nio ( $NIO-SW (09866.HK)$ ) surged by 4.52 yuan or 10.3%, closing at 48.38 yuan; Li Auto ( $LI AUTO-W (02015.HK)$ ) rose by 3.5 yuan or 5.17%, closing at 71.2 yuan; XPeng Motors ( $XPENG-W (09868.HK)$ ) rose by 2.8 yuan or 4.28%, closing at 68.25 yuan; Geely ( $GEELY AUTO (00175.HK)$ ) rose by 1.06 yuan or 5.07%, closing at 21.98 yuan, hitting a new all-time high; CATL ( $CATL (03750.HK)$ ) rose by 19 yuan or 3.1%, closing at 632.5 yuan.

Tech stocks generally rebounded, with the 'large model duo' once again attracting capital interest. Zhipu ( $KNOWLEDGE ATLAS (02513.HK)$ ) Post-results, the stock was upgraded by major firms with a raised target price; its share price surged by HKD 221.5 or 31.9%, closing at HKD 915; MINIMAX ( $MINIMAX-W (00100.HK)$ ) rose by HKD 130.5 or 14%, closing at HKD 1,060. Chip stocks collectively surged higher, with TianShu Zhipin ( $ILUVATAR COREX (09903.HK)$ ) rising by HKD 20.4 or 9.7%, closing at HKD 231.6; Biren Technology ( $BIREN TECH (06082.HK)$ ) gaining HKD 2.78 or 9.6%, closing at HKD 31.6; Huahong Semiconductor ( $HUA HONG SEMI (01347.HK)$ ) climbing by HKD 6 or 7.7%, closing at HKD 83.65; SMIC ( $SMIC (00981.HK)$ ) increasing by HKD 2.15 or 4.24%, closing at HKD 52.85.

In other tech stocks, Baidu ( $BIDU-SW (09888.HK)$ ) gained HKD 3.9 or 3.69%, closing at HKD 109.6; Alibaba ( $BABA-W (09988.HK)$ ) added HKD 3.7 or 3.11%, closing at HKD 122.7; Tencent ( $TENCENT (00700.HK)$ ) rose by HKD 12.6 or 2.6%, closing at HKD 496.6; Kuaishou (1024) advanced by 2.39%, closing at HKD 46.2; Xiaomi ( $XIAOMI-W (01810.HK)$ ) rose by 0.26 yuan or 0.82%, closing at 32.02 yuan; Meituan ( $MEITUAN-W (03690.HK)$ ) fell against the trend by 1 yuan or 1.21%, closing at 81.95 yuan; JD.com ( $JD-SW (09618.HK)$ ) dropped 0.27%, closing at 112.9 yuan. Apple's AI has made new progress in China, and Apple-related stocks were also favored. Sunny Optical ( $SUNNY OPTICAL (02382.HK)$ ) surged by 3.5 yuan or 6.55%, closing at 56.95 yuan; AAC Technologies ( $AAC TECH (02018.HK)$ ) rose by 1.4 yuan or 4.23%, closing at 34.5 yuan.

Robot concept stocks gained momentum. Amazon ( $Amazon (AMZN.US)$ ) confirmed the acquisition of Fauna Robotics, a New York-based startup. This acquisition is Amazon's second in the robotics field within a week, marking its official entry into the humanoid robot market. In addition, Tesla ( $Tesla (TSLA.US)$ ) Optimus team initiated a large-scale talent recruitment, starting the construction of a factory capable of mass-producing millions of robots. Ubtech Robotics $UBTECH ROBOTICS (09880.HK)$ surged 17% after earnings, closing at 100 yuan. The company achieved revenue of 2.001 billion yuan, a year-on-year increase of 53.3%. Full-size embodied AI humanoid robots (non-remote control, non-toys, height above 160cm) became the company’s largest source of income, generating revenue of 820 million yuan, a year-on-year increase of 2203.7%; sales reached 1,079 units, a year-on-year increase of 35,866.7%; Woan Robotics $ONEROBOTICS (06600.HK)$ 107.600 increased by 15.6 yuan or 17%; Hong Kong Robot $HK ROBOTICS (00370.HK)$ Rose by 0.08 yuan or 12.5%, closing at 0.720 yuan; Hesai-W $HESAI-W (02525.HK)$ Rose by 17.4 yuan or 12.31%, closing at 158.700; MicroPort Surgical Robotics-B $MEDBOT-B (02252.HK)$ Rose by 2.22 yuan or 8.8%, closing at 27.46 yuan.

Expectations of easing tensions in the Middle East drove oil prices down more than 4%. Brent crude fell below $100 per barrel, and energy stocks generally declined against the market trend. CNOOC $CNOOC (00883.HK)$ Dropped by 1.04 yuan or 3.71%, closing at 26.96 yuan, making it the worst-performing blue-chip stock of the day; PetroChina $PETROCHINA (00857.HK)$ Dropped by 0.2 yuan or 1.86%, closing at 10.55 yuan; Yanchang Petroleum $YANCHANG PETRO (00346.HK)$ Dropped by 0.015 yuan or 3.4%, closing at 0.425 yuan; Shandong Molong $SHANDONG MOLONG (00568.HK)$ Dropped by 0.76 yuan or 8.7%, closing at 7.94 yuan. Additionally, anticipation of the reopening of the Strait of Hormuz benefited shipping stocks, with COSCO Shipping Energy ( $COSCO SHIP ENGY (01138.HK)$ ) rising 7.1%, closing at 19.2 yuan. Pop Mart ( $POP MART (09992.HK)$ ) repurchased shares for the fourth consecutive day, and its stock price finally stabilized, rising 1.18% to close at 145.3 yuan.

Today, biotech stocks led the market gains, significantly improving sentiment in related sectors. Additionally, April will see the annual meeting of the American Association for Cancer Research (AACR) and several major FDA drug approval decisions covering areas such as neurology, immunology, and rare diseases. The regulatory catalysts are concentrated, and if most receive positive outcomes, it will further strengthen confidence in the recovery of the biotech sector. Investors optimistic about the dual-core development of biopharmaceuticals in China and the US should keep an eye on the E Fund Biopharmaceuticals ETF ( $EFund Biophar ETF (03186.HK)$ ), which closed today at 16.4 yuan, up 1.04 yuan or 6.77%. This ETF is the world's first cross-market biopharmaceutical ETF spanning Hong Kong and the US, selecting 100 leading companies from both markets, including Hengrui Pharma ( $HENGRUI PHARMA (01276.HK)$ ), Beigene ( $BEONE MEDICINES (06160.HK)$ ), Eli Lilly and Co ( $Eli Lilly and Co (LLY.US)$ ), and Johnson & Johnson ( $Johnson & Johnson (JNJ.US)$ Top pharmaceutical companies in both China and the US, such as Hengrui Pharma and Eli Lilly and Co. The ETF tracks an equally weighted index, effectively avoiding over-concentration in individual giants while increasing allocation to small and medium-sized innovative firms, offering the potential for excess returns from significant new drug approvals. Since its base date, the index has risen by 140.31% cumulatively. Investors should note that this ETF is concentrated in the biopharmaceutical sector, with higher volatility in net asset value, making it suitable for investors optimistic about the long-term development of the global biopharmaceutical industry.

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