Cai Lian News Agency, June 5 (Editor Hu Jiarong) Today, the three major indexes of Hong Kong stocks closed up collectively, of which the Hang Seng Index rose 0.84% to 19108.5 points; the Technology Index rose 0.43% to 3840.77 points; and the State-owned Enterprises Index rose 0.55% to 6463.9 points.
Note: Hang Seng Index performance
The short-term market bottom has been made
Note: The trend of the Hang Seng Index since last Monday
Compared with Friday's Hang Seng Index, the trend of the index today is still volatile and strong. However, in the process of bottoming out last week, there was effective support near the 18,000 mark.
As CICC noted on Sunday, the market rebounded, driven by positive developments on the U.S. debt ceiling issue and expectations of more aggressive domestic policies. After the market has clearly entered oversold territory and risk premiums have been at a high level, short cover trading may also be the main driver of the rapid market rally on Friday.
As for whether the follow-up of this round of rebound is sustainable, CICC believes that the market has better downside protection at this position. Policy is expected to continue its past practice of guarding against downside risks, and the Fed's monetary policy is likely not to accelerate further tightening, these two factors are still enough to provide downside protection for the market.
In addition, the Hong Kong stock market currently accounts for more pessimistic expectations, so the risk-return value ratio of the current level market is indeed attractive.
Guosen Securities pointed out that in view of the current overseas or still has the probability of interest rate hikes, the information on interest rate cuts is still relatively vague, so the high interest rate environment will be maintained. For the investment strategy of Hong Kong stocks in June, in terms of sector allocation, Guoxin recommends: China Special Valuation, Internet, Consumption, Pharmaceutical, New Energy and Electronics sectors.
Today's Market
From a market perspective, semiconductors, telecom operators and power stocks led the market, while gold and real estate sectors pulled back.
Semiconductor stocks strengthen again, SMIC rises more than 6%
Among semiconductor stocks, Hongguang Semiconductor (06908.HK), SMIC (00981.HK), and Xinzhi Holdings (02166.HK) rose 6.71%, 6.32% and 2.22% respectively.
Note: Semiconductor stock performance
Recently, securities firms, including CITIC Securities, said in research reports that the prosperity of the semiconductor industry is expected to be repaired ahead of schedule. CITIC Securities believes that under the catalyst of ChatGPT and AI concepts in the first quarter, the demand for semiconductors driven by current affairs will provide a boost to the recovery of the industry. The sequential recovery is expected to continue, with the recovery of consumer electronics demand in the second half of the year and the long-term AI pull on computing power and storage demand as key drivers.
In addition, the Guangdong Provincial Party Committee and the Guangdong Provincial People's Government issued opinions on high-quality construction and manufacturing of strong provinces last week. The opinion proposed to continue to promote the "Guangdong Strong Core" project, grasp the establishment of the second phase of the provincial semiconductor and integrated circuit industry investment fund, and comprehensively build the third pole of China's integrated circuits.
Telecom stocks mostly rose, China Mobile rose nearly 2%
Among telecom stocks, CITIC Telecom International (01883.HK), China Mobile (00941.HK) and China Telecom (00728.HK) rose 2.71%, 1.63% and 1.02% respectively.
Note: Telecom stock performance
In terms of news, the Ministry of Industry and Information Technology announced over the weekend that it will accelerate the construction of 5G virtual private networks, deeply implement 5G application sailing actions, and forward-looking layout of cutting-edge fields such as the next-generation Internet to comprehensively promote 6G technology research and development. In addition, China Mobile, China Unicom and China Telecom, the three major domestic telecom operators, will also benefit.
Power stocks mostly strengthened, Weineng Group rose nearly 4%
Among power stocks, Weineng Group (01608.HK), Cheung Kong Infrastructure Group (01038.HK) and Huadian International Power Holdings (00902.HK) rose 3.85%, 3.08% and 1.57% respectively.
Note: Power stock performance
Recently, there has been high temperature weather in many places in the south, and some areas such as Sichuan and Guangdong have sounded the first high temperature red warning this year. At the same time, with rising temperatures and the recovery of the domestic economy, social electricity consumption has expanded dramatically. The latest statistics show that the electricity consumption of the whole society in the country reached 690.1 billion kWh in April, an increase of 8.3% year-on-year. Compared to the same period last year, electricity consumption has increased every month this year.
Li Chunchi, co-chief analyst of the power utility team of Cinda Securities Research and Development Center, said in an interview with CaiLian News that this year's electricity load may hit a record high. Since May, the electricity load in many places is growing rapidly, so there is a high probability of a power shortage this summer.
Gold stocks continue to pullback, Zhaojin Mining fell more than 11%
Among gold stocks, Zhaojin Mining (01818.HK), Lingbao Gold (03330.HK) and China Gold International (02099.HK) fell by 11.34%, 10.43% and 6.53% respectively.
Note: Gold stock performance
In terms of news, the US non-farm payrolls data for May on Friday unexpectedly increased, and the number of new jobs reached the highest level this year, while US President Biden signed a bill on the federal government's debt ceiling and budget on June 3 local time, temporarily avoiding the US government from falling into debt default.
Affected by the above news, the market's risk aversion cooled, which in turn caused the international gold price to continue to decline. Take COMEX gold, for example, which is trading lower again today after closing down 1.56% on June 2.
At press time, COMEX gold was down 0.71% at $1955.6.
Note: COMEX gold trend
Real estate stocks pulled back, Longguang Group fell more than 6%
Among real estate stocks, Longguang Group (03380.HK), KWG Pacific Group (01813.HK) and Powerlong Real Estate (01328.HK) fell by 6.02%, 5.41% and 4.12% respectively.
Note: Real estate stock performance
In terms of news, the research report of Shengang Securities pointed out that the cumulative sales of equity of the top 100 housing enterprises in May fell year-on-year, and turned negative year-on-year in a single month. The agency believes that this shows that the sales performance of housing enterprises weakened significantly in May, and the backlog of demand has been released in February and April, resulting in insufficient follow-up momentum for commercial housing sales.
In addition, Li Bei of Banxia Investment said in the latest monthly report that she had reduced her position and stopped several state-owned real estate stocks, and said that the demand side of the real estate industry was worse than she expected, and the bottom of the industry was expected to extend to the first half of next year. Previously, the investor, known as the "private equity devil", has been bullish on the real estate industry.
Southbound funding
Southbound inflows today amounted to HK$10.9 billion, bringing the cumulative inflow of HK$4.811 billion since June.
Individual stock news and changes
[Leap Auto rose nearly 10%, sales exceeded 10,000 in May, significantly ahead of Xpeng NIO]
Leapmotor (09863.HK) rose 9.94% to HK$38.15. On the news, recently, Leap Auto's new car delivery volume in May was announced. According to the disclosure, Leapmotor delivered 12,058 units in May, an increase of more than 38% month-on-month. Among them, the C series delivered more than 10,000 units, an increase of more than 38% month-on-month. In addition, Leap Auto's May sales ranked second only to Li Li and Nezha among the new brands, significantly ahead of Xpeng's 7,506 units and NIO's 6,155 units.
[Ctrip Group rises more than 4% and was included in the Hang Seng Index a few days ago]
Ctrip Group-S (09961.HK) rose 4.44% to close at HK$268.2. According to the results of the first quarter review of the Hang Seng Index, China Resources Power, Zijin Mining, JD Health and Ctrip Group-S will be included in the Hang Seng Index, and this adjustment will take effect after market hours today.
This article is from Cai Lian News Agency Hu Jiarong