On Tuesday, the Hang Seng Index remained volatile, with large technology stocks falling more or less, Tencent Holdings (00700.HK) down nearly 3%, while the green power sector was active again, with Huaneng International (00902.HK) and China Power (02380.HK) up more than 5%.
Hong Kong stocks continue to adjust today, some analysts said that the Hong Kong stock market is still adjusting, a sharp rebound conditions have not yet been reached, the main reason is that many uncertainties have tightened the market risk appetite, and next week's Fed interest rate meeting is imminent, its March interest rate hike probability is as high as 100%, so that the market rebound space is limited.
By the close, the Hang Seng Index fell 0.43% to close at 24112.78 points; the Hang Seng Technology Index fell 0.45% to close at 5698.54 points; the State-Owned Enterprises Index fell 0.18% to close at 8449 points; and the Red Chip Index rose 0.86% to close at 4099.02 points.
In terms of concept stocks and sectors, the green electricity sector after the previous adjustment for many days was collectively red, followed by the home sector rose sharply, and these sectors rose by 5.07% and 4.21% respectively. In addition, the Internet and related sectors performed weaker than the broader market, with cloud computing concept stocks and cloud computing concept stocks leading the decline, down 2.49% and 2.31% respectively.
On Tuesday, the green power sector performed eye-catchingly, with Huaneng International (00902.HK) and China Power (02380.HK) rising in the front, up 5.23% and 5.1% respectively.
The rise in the green electricity sector is related to the article published by China Economic Daily today. The article mentions that the energy crisis in Europe has brought some warnings to China that it should seek steady progress in the energy transformation strategy, which means that traditional power stocks still have a large transition time in the future.
At the same time, UBS also recently released a report reiterating its positive views on Chinese renewable energy operators and pointing out a number of positive catalysts, including thermal power price increases, China's development of carbon trading markets, and green electricity prices.
The Internet sector performed less well today, with Tencent Holdings (00700.HK and Alibaba (09988.HK) leading the decline, down 2.75% and 1.63% respectively.
The adjustment of the Internet sector today is related to the rise in US Treasury yields. In recent days, the market's expectations that the Federal Reserve will raise interest rates in March have gradually warmed, resulting in a rapid rise in US Treasury yields. As of Tuesday's press release, the 10-year Treasury yield rose to 1.85 percent, its highest level since January 2020.
At the same time, the Hang Seng Technology Index constituent stocks led the decline, triggering one of the factors in the adjustment of the Internet sector, Tencent Holdings fell 2.75%, the main reason is that the company was cut by a number of institutions to reduce revenue and target price, including CICC today released a research report said that Tencent's revenue in the fourth quarter will increase by 5% year-on-year, adjusted net profit fell by 25% year-on-year to 24.8 billion yuan. At the same time, taking into account the company's investment in new business under the pressure of revenue, CICC lowered its adjusted net profit for 2021/22 by 4% and 6% respectively.
Southbound funds
Southbound continued its inflows today, with net purchases of HK$3,082 million.
Hong Kong market stock news and changes
【Man Wah Holdings up 7.18% Q4 head home furnishing companies growth expectations are good】
Man Wah Holdings (019999.HK) rose 7.18% to close at HK$12.54. Gujia Home Furnishing, which was listed on the A-share market last week, took the lead in releasing the 2021 performance forecast, and the overall performance was relatively excellent, so Guojin Securities expects that most of the head home furnishing companies will still achieve more satisfactory growth in the fourth quarter of 2021. At the bottom of the real estate policy, it has been basically proved that the overall home demand is expected to usher in a marginal reversal, and the sustainability of the overall market of the plate is worth looking forward to.
【Hong Kong stock semiconductor sector partially strengthened TSMC adjusted wafer foundry prices】
On Tuesday, the Hong Kong semiconductor sector strengthened, up 2.71 percent as of the close, with SMIC (00981.HK) and Shanghai Fudan (01385.HK) leading the gains, up 3.96 percent and 1.94 percent, respectively. According to relevant reports, TSMC will fully increase the price of wafer foundry in 2022. CITIC Construction Investment believes that although the current demand for semiconductors has a certain structural differentiation, the overall situation is still in a state of high prosperity and tight supply and demand, and it is expected that the overall production capacity will still be tight in 2022, and there will still be structural shortages and price increases.
[Yongda Automobile rose 6.63% brokerage said that the rebound in automobile sales volume has offset the decline in gross profit margin]
Yongda Automobile (03669.HK) rose 6.63% to close at HK$9.97. Daiwa released a research report saying that it reiterated its positive views on the auto dealership industry. Daiwa said that the market is overly worried about the impact of the lack of core problems, the recovery in car sales has offset the decline in gross margin, and dealers' gross profit of 70% to 80% comes from after-sales service rather than new car sales.
【The real estate sector is picking up, the National Development and Reform Commission says that some debt defaults will not affect the overall function of the Chinese foreign bond market】
On Tuesday, the real estate sector closed slightly higher, and by the close, the sector was up 1.71%, of which Country Garden (02007.HK), Vanke Enterprise (022202.HK) and Shimao Group (00813.HK) rose more than 4%. Jin Xiandong, director of the Policy Research Office of the National Development and Reform Commission, said that some high-leverage real estate enterprises have defaulted on foreign debt due to their own business problems, resulting in a temporary panic in the real estate sector of the Chinese foreign bond market, which is a self-regulation of the market and will not affect the overall function of the Chinese foreign bond market. The news triggered a recovery in the real estate sector in the afternoon.