Zhitong Financial App learned that Hong Kong's Hang Seng Index opened up 0.18%, quickly fell to green after opening high in early trading, and then fluctuated higher, rising more than 150 points in the afternoon, and narrowing the gains at the end of the day. By the close, the Hang Seng Index was up 0.47% or 90.77 points at 19,389.95 points, up 2.32% for the week, with a full-day turnover of HK$86.61 billion, the Hang Seng State-owned Enterprises Index was up 0.75% at 6,589.32 points, and the Hang Seng Technology Index was up 1.03% at 3,934.22 points.
Zhongtai International said that the current rally of Hong Kong stocks is still a repair of excessive pessimism in the early stage, and policy expectations and the upcoming visit of the US Secretary of State to China have given Hong Kong stocks a window to rebound. However, the upside of Hong Kong stocks is still hindered by weak fundamentals, and the opening of upside space must be accompanied by endogenous momentum or improved earnings expectations, otherwise it is difficult to bring sustained momentum to the stock market by relying on emotional repair.
Blue chip performance
Chow Tai Fook (01929) led the blue-chip gains. As of the close, it rose 3.62% to HK$14.3, with a turnover of HK$241 million, contributing 1.61 points to the Hang Seng Index. According to the Tai Fook Research Report, it is predicted that Chow Tai Fook's share price will outperform the industry performance in the next 45 days, and the company announced its results for the full year ended March with a good dividend for the whole year, and a special dividend announcement, and it is surprising that the return on equity target for FY2024 has improved to between 25% and 30%.
In other blue-chip areas, WuXi Biologics (02269) rose 2.99% to HK$44.85, contributing 7.95 points to the Hang Seng Index; China Resources Beer (00291) rose 2.91% to HK$53, contributing 3.88 points to the Hang Seng Index; Country Garden Services (06098) fell 1.57% to HK$10.02, dragging down the Hang Seng Index by 0.58 points; Hengan International (01044) fell 1.43% to HK$34.55, dragging down the Hang Seng Index by 0.55 points.
Hot sector aspects
On the market, CRO concept, power stocks, oil stocks, gold stocks, biomedicine, etc. rose first, and most of the large technology stocks rose; In addition, the inner house and property management pulled back today, and pork concepts, agricultural stocks, and home appliance stocks fell first.
1. Gold stocks bucked the market. As of the close, Zhaojin Mining (01818) rose 4.02% to HK$11.38, Shandong Gold (01787) rose 2.6% to HK$15.76, Lingbao Gold (03330) rose 2.07% to HK$1.48, and Zijin Mining (02899) rose 1.04% to HK$11.62.
The Labor Department reported Thursday that initial jobless claims rose by 28,000 to 261,000 in the week ended June 3. The ICE dollar index fell 076% to 103.35 after the data, boosting the attractiveness of dollar-denominated gold. On Thursday, COMEX gold futures for August ended up 1.03% at $1978.60 an ounce. COMEX gold futures for October ended up 1.02% at $1998.10 an ounce.
2. The CRO concept is the top gainer. As of the close, Viva Biologics (01873) rose 9.83% to HK$1.9, WuXi AppTec (02359) rose 5.35% to HK$66.9, Zhaoyan New Drug (06127) rose 4.87% to HK$30.15, and WuXi Biologics (02269) rose 2.99% to HK$44.85.
Haitong International Research Report pointed out that in 2023, the fundamental logic of CXO is expected to improve, mainly due to: based on the change in the single-quarter performance base in 2022, the year-on-year growth rate of each company's performance in 2023 is expected to increase quarter by quarter; New crown-related revenue will gradually be cleared, and the continuous birth of large varieties of drugs will bring stability to the performance growth of head CDMOs; Biomedical investment and financing is expected to recover after the Fed ends its interest rate hike; The outsourcing rate of global CXOs is still increasing, and the global market share of CXOs in China is increasing.
3. The Tesla concept goes higher en masse. As of the close, LK Technology (00558) rose 8.92% to HK$7.57; Yihe Holdings (00838) rose 5.13% to HK$0.82; Yadi Holdings (01585) rose 3.95% to HK$17.38; Minth Group (00425) rose 2.36% to HK$21.7.
According to reports, a number of people familiar with the matter said today that Tesla is in talks with the city government of Valencia, Spain, to build an electric vehicle factory. Tesla's total investment in the factory could exceed 4.5 billion euros ($4.83 billion), or much higher. In addition, following Ford Motors, GM will also adopt Tesla's charging standards on the next generation of electric vehicles. Like Ford, GM's electric vehicles will have access to Tesla's roughly 12,000 Supercharger stations in North America by 2024.
4. Auto stocks and auto parts stocks strengthened. As of the close, Zhejiang Shibao (01057) rose 11.03% to HK$1.61; Wanma Holdings (06928) rose 6.29% to HK$1.52; Xpeng-W (09868) rose 5.34% to HK$34.55; Wuling Motors (00305) rose 2.74% to HK$0.75.
According to data released by the China Association of Automobile Manufacturers (CAAM) on June 9, the production and sales of new energy vehicles reached 713,000 units and 717,000 units in May, up 53% and 60.2% y/y, respectively, and their market share reached 30.1%. On June 8, the General Office of the Ministry of Commerce issued a notice on organizing and carrying out automobile consumption promotion activities. The notice focuses on two activity arrangements, namely the "100 Cities Linkage" Car Festival and the "Thousands of Counties and Towns" New Energy Vehicle Consumption Season. Huaan Securities pointed out that the warm wind of automobile consumption policy hit, and the industry prosperity accelerated recovery. The subsequent implementation of the new energy vehicle purchase tax reduction rules will effectively drive the sales of new energy vehicles and usher in the upward cycle of the industry.
5. Inner room, property management callback. As of the close, Times China (01233) fell 6.33% to HK$0.74, Sunac Services (01516) fell 4.64% to HK$2.26, and Metro Development (01030) fell 2.94% to HK$1.65. Metro Yue Service (01755) fell 2.03% to HK$4.35.
According to CRERUI data monitoring, in May 2023, the full-caliber sales amount of the top 100 housing enterprises was 549.2 billion yuan, an increase of 5.3% year-on-year, down 14.5% month-on-month, and the full-caliber area was 29.52 million square meters, down 23% year-on-year and 9.4% month-on-month. Goldman Sachs released a research report pointing out that without relevant easing policies, the short-term outlook for domestic housing is challenging, and contract sales are expected to fall by 20% to 35% year-on-year in June, while onshore and offshore debt service pressure from June to December remains high, and private companies that have not defaulted account for about half of the total outstanding debt.
Hot change stocks
1. Remegen-B (09995) was approved to extract "B". As of the close, it rose 7.85% to HK$32.3, with a full-day turnover of HK$85.015 million.
On June 7, Remegen announced that it has received approval from the Hong Kong Stock Exchange to officially remove the "B" mark from the stock symbol in the near future. The "B" award means that Remegen has reached a higher standard in terms of market value and revenue, which is another milestone in the company's development history.
2. Guoke Holdings (08275) increased its volume. As of the close, it rose 24.53% to HK$1.32, with a full-day turnover of HK$12.6026 million.
GUOKE HOLDINGS ANNOUNCED YESTERDAY THAT THE ENGLISH ABBREVIATION OF THE COMPANY'S SHARES TRADED ON THE STOCK EXCHANGE GEM WILL BE CHANGED FROM "STATE INNOVAT" TO "CHINA NEW CONS", AND THE ABBREVIATION OF Chinese SHARES WILL BE CHANGED FROM "GUOKE HOLDINGS" TO "CHINA NEW CONSUMPTION GROUP", EFFECTIVE FROM 9 A.M. ON JUNE 14, 2023.
3. Luye Pharmaceutical (02186) rose significantly. As of the close, it rose 4.69% to HK$3.57, with a full-day turnover of HK$103 million.
Luye Pharmaceutical announced that the Group's product Hemolipidkang Capsules (Blood Lipid Kang) has been approved for marketing in Uzbekistan for hyperlipidemia and adjuvant treatment of cardiovascular and cerebrovascular diseases caused by hyperlipidemia and atherosclerosis. At present, the product is also sold in Hong Kong, Southeast Asia and other markets, and the market of Lipid Health in Latin America is also actively developing.