21st Century Business Herald reporter He Liuying reported from Shenzhen
Last week (December 11-December 15), affected by the Federal Reserve's continued pause in interest rate hikes, the three major stock indexes of Hong Kong stocks rose across the board, but the Hang Seng Index still hovered below 17,000 points.
For the week, the Hang Seng Index rose 457.82 points, or 2.8%, to 16,792.19, the Hang Seng Tech Index rose 74.76 points, or 2.02%, to 3,780.69, and the China Enterprises Index rose 102.23 points, or 1.83%, to 5,700.39.
On 13 December, the US Federal Open Market Committee (FOMC) announced that it would keep the target range for the federal funds rate unchanged between 5.25% and 5.5%, in line with market expectations. This is the third consecutive pause in interest rate hikes by the Fed since its September interest rate meeting. At the same time, Fed Chairman Jerome Powell said that the timing of interest rate cuts was discussed at this meeting, and the rate cut signal was released.
Yan Zhaojun, a strategic analyst at Zhongtai International, told the 21st Century Business Herald reporter that "the Federal Reserve is full of confidence in the U.S. economy to achieve a soft landing, and the interest rate cut is only to control the excessively high real interest rate and avoid the risk of recession caused by excessive tightening." Whether there will be more than three rate cuts in 2024 depends on the progress of the decline in inflation or the growth situation in the United States. The current interest rate futures market is expecting six rate cuts next year, and it is necessary to be careful whether it evolves into a recession rate cut expectation, when the economic data shows that the risk of recession has risen, the market's interest rate cut expectations and the Fed's interest rate cut attitude will be stronger. However, as long as the risk-free rate does not rise, it will inevitably ease the valuation pressure on Hong Kong stocks. ”
For the whole year, the Hang Seng Index fell from 19,570.43 points at the beginning of the year to below 17,000 points at present, a decline of 15.11%. Yang Delong, managing director and chief economist of Qianhai Open Source Fund, told the 21st Century Business Herald reporter that the weak domestic economic recovery this year and the outflow of funds have stimulated a sharp rebound in U.S. stocks, and Hong Kong stocks are weaker than U.S. stocks.
Yang Delong believes that in 2024, with the further increase in support for economic recovery, coupled with the possibility of the Fed's interest rate hike cycle ending and starting to cut interest rates, Hong Kong stocks are expected to have a valuation repair market, and some high-quality blue chips and leading stocks that have been wrongly killed may have better performance.
Real estate stocks were higher, while restaurant stocks were down
From a sector perspective, gold and precious metals stocks were mixed. Zijin Mining rose 2.72 percent, Datang Tongjin rose 2 percent, Tongguan Gold fell 5.38 percent, Shandong Gold fell 1.23 percent, and China Silver Group fell 7.24 percent.
Real estate developer stocks rose collectively. Sun Hung Kai Properties rose 8.48%, China Resources Land rose 9.14%, China Overseas Land & Investment rose 4.78%, Cheung Kong Group rose 2.8%, Henderson Land rose 11.06%, Longfor Group rose 7.15%, New World Development rose 7.8%, and China Jinmao rose 8.33%. In addition, Kaisa Group fell 3.26%.
Among insurance stocks, AIA rose 6.34%, Xinhua Insurance rose 0.95%, China Taiping rose 0.45%, Chinese Life fell 0.7%, China Taibao fell 1.05%, and Zhongan Online fell 0.31%.
F&B stocks declined. Yum China fell 0.06%, Jiumaojiu fell 1.94%, Xiabu Xiabu fell 1.13%, Nai Xue's tea fell 6.06%, Da Kuaihuo Group fell 2.96%, and Helens fell 4.55%. In addition, Haidilao rose 0.69%.
Among semiconductor stocks, SMIC rose 0.24%, Brain Technology rose 9%, Hua Hong Semiconductor rose 11.03%, Solomon Systech rose 4.92%, Shanghai Fudan fell 3.37%, and CLP Huada Technology fell 0.76%.
Among auto stocks, Li Auto-W rose 2.87%, NIO-SW rose 7.18%, and Great Wall Motor rose 1.57%. In addition, Xpeng Motors-W fell 1.82%, Leapmotor fell 2.2%, GAC Group fell 0.29%, BAIC Motor fell 0.45%, and BYD shares fell 1.04%.
Among the steel stocks, Anshan Iron and Steel fell 0.66%, Daming International fell 9.01%, Chongqing Iron and Steel rose 2.82%, China Oriental Group rose 1.69%, and Asia-Pacific Resources rose 1.08%.
Heavy infrastructure stocks were mostly higher, with Chaowei Holdings up 8.7%, China Communications Construction up 0.29%, China Metallurgical up 1.39% and Yihe Holdings up 1.79%. In addition, Tiancheng Holdings fell 2.6%.
Among the Chinese concept stocks in Hong Kong, Alibaba-SW rose 1.63%, Trip.com Group-S rose 2.22%, JD.com-SW rose 0.86%, and Chi-Med rose 3.34%. NetEase-S fell 0.97%, Baidu Group-SW fell 0.18%, Zhongtong Express-W fell 3.23%, BOSS Zhipin-W fell 0.43%, MINISO fell 8.03%, and Zhihu-W fell 2.6%.
Tang Xiaoou, the founder of SenseTime, passed away
On December 16, the news of the death of Tang Xiaoou, the founder of SenseTime Technology and a famous artificial intelligence scientist, attracted huge attention.
According to the obituary of SenseTime, "Our beloved founder, artificial intelligence scientist, director of Pujiang Laboratory, director of Shanghai Artificial Intelligence Laboratory, and professor of Chinese University of Hong Kong, Tang Xiaoou left us forever at 23:45 on December 15, 2023 due to ineffective treatment." ”
According to the obituary, Professor Tang Xiaoou is an outstanding representative in the field of artificial intelligence in mainland China. He is knowledgeable, rigorous, pragmatic, pioneering and innovative, full of family and country feelings and strategic vision. He is willing to be a ladder for others, reward post-graduates, determined to innovate, brave to shoulder heavy responsibilities, dedicate all his energy to computer science research, actively promote the development of original technology, and make outstanding contributions to the development of science and technology in the field of artificial intelligence in mainland China. He has been cultivating students for more than 20 years. SenseTime will inherit the spirit and philosophy of Professor Tang Xiaoou and move forward bravely on the road of developing artificial intelligence.
Tang Xiaoou, born in Anshan, Liaoning Province in 1968, is a professor in the Department of Information Engineering and a distinguished scholar in the School of Engineering at the Chinese University of Hong Kong. In 2014, SenseTime was founded in the Multimedia Laboratory of the University of Chinese Hong Kong.
Tang Xiaoou has been deeply engaged in the field of computer vision technology and deep learning Xi algorithms for many years, and is known as the "pioneer" and "pathfinder" of global face recognition technology. The companies he founded, such as SenseTime Technology, Megvii Technology, Yuncong Technology, and YITU Technology, are known as the "AI Four Tigers" in the industry.
Last week, SenseTime-W fell 2.33% to HK$1.26 per share as of the last trading day of last week (December 15), with a total market capitalization of HK$42.171 billion. SenseTime-WR fell 2.54% to HK$1.15 per share.
Oriental Selection fell 21.99% for the week
Last week, the Dongfang selection anchor Dong Yuhui's small essay incident caused public opinion fermentation and the company's stock price fell.
On the evening of December 17, Oriental Selection announced on the Hong Kong Stock Exchange that the board of directors had resolved on December 16 to remove Sun Dongxu as chief executive officer and remove him as executive director of the company, effective immediately. However, Sun Dongxu still retains his position as a non-executive director of Oriental Selection.
According to the announcement, in view of the recent public opinion turmoil, Sun Dongxu's position change reflects his recent mismanagement of the company's brand and reputation, and the board believes that Sun Dongxu's resignation from these positions will better protect the interests of the company's shareholders, so that more experienced directors can take over the day-to-day management of the company.
According to the announcement, the Board of Directors has appointed Yu Minhong as the new Chief Executive Officer of the Company, effective immediately. Yu Minhong will continue to serve as the Chairman of the Board and will be re-designated as an Executive Director of the Company.
On the evening of December 16, Dong Yuhui and Yu Minhong appeared in the live broadcast room together and responded to many controversies.
Yu Minhong said that the removal of Sun Dongxu as CEO had nothing to do with Dong Yuhui. First of all, the editor can bypass the management to express himself, Sun Dongxu can't stand the (negative) remarks on any platform, so he will express it with an inappropriate attitude and language on the live broadcast, which is a serious violation of the rules, he could have handled this matter well, instead of adding fuel to the fire.
Yu Minhong said, "This incident is a big loophole caused by the accumulation of typical management, and on the whole, because as the chairman, I did not use my position to carry out more stringent requirements when some things appeared in the whole company." ”
Dong Yuhui said that he didn't want to become a seller anchor, and he didn't like that look. He also said, "Teacher Yu and I have at least five or six phone calls a day, and we will focus more on the promotion of cultural tourism in the future." I choose what I like and love. Too many people come to me, I instinctively refuse, and I fear misleading either point of view. ”
On the same day, Yu Minhong issued a letter of apology through the Dongfang Selection Douyin account. The apology letter shows, "Dongfang Selection's live broadcast room used an inappropriate way to block some netizens and friends who put forward opinions and suggestions, which is extremely inappropriate." I have made severe criticisms of this mistake and apologize to the majority of netizens for this matter!"
From December 11th to December 15th, Oriental Selection fell 21.99% to HK$26.25 per share, and New Oriental-S fell 1.91% to HK$61.65 per share.
Among other education stocks, Scholar Education rose 65.79%, Excellence Education Group rose 81.58%, China Education Holdings rose 2.35%, China Oriental Education rose 4.15%, Zhonghui Group rose 3.78%, and Chalk fell 1.76%.
Guosen Securities believes that the logic behind this round of squatting and jumping in the education sector can be summarized as "the improvement of the business environment + the effect of model transformation is highlighted". The regulatory attitude of the education industry is gradually becoming clearer, and the business model of education companies is being carried out in a more compliant form, and the results of stage transformation are prominent, and education companies are expected to show a strong recovery this year.
This week's preview
Economic data
Monday, December 18: US NAHB Housing Market Index for December
Tuesday, December 19: Bank of Japan Governor Kazuo Ueda holds monetary policy press conference, Eurozone November CPI
Wednesday, December 20: US 2024 FOMC member and Atlanta Fed President Bostic speaks on US economic and business outlook, China's one-year and five-year loan prime rates for December, UK CPI for November
Thursday, December 21: China's share of global payments in Swift in November
Friday, December 22: Japan's November CPI, UK's Q3 GDP
Earnings announcement
This week, Children's Garden International, Emperor Capital, CEC International, Quality International, Gaofeng Group Holdings, etc. will announce their latest financial reports.
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