The Hang Seng Index closed down 0.72%, and the new "National Nine Articles" boosted the top stocks in China and gold stocks collectively pulled back

Zhitong Financial APP learned that the three major indexes of Hong Kong stocks fell rapidly after opening collectively low in early trading, with the Hang Seng Index and the Hang Seng Index both falling more than 1% intraday, and the Hang Seng Index once falling more than 2%; At the close, the Hang Seng Index fell 0.72% or 121.23 points to 16,600.46 points, with a full-day turnover of HK$95.155 billion, the Hang Seng China Enterprises Index fell 0.39% to 5,856.44 points, and the Hang Seng Tech Index fell 0.92% to 3,442.49 points.

Guotai Junan pointed out that in the case that overseas risk events have not been fully cleared and may disrupt the Hong Kong stock market, the high-dividend style with low-risk characteristics still has allocation value. In addition, the new "National Nine Measures" in China's capital market will help investors focus on assets with lower valuations, more stable growth and higher dividends. In the past few years, the policy adjustment and valuation adjustment of Hong Kong Internet stocks have been sufficient, and the stock price is entering the hitting zone, so we can look at the opportunities of Chinese Internet companies from a longer-term perspective.

Blue chip performance

Chow Tai Fook (01929) led the blue-chip decline. As of the close, it fell 7.92% to HK$10.46, with a turnover of HK$216 million, dragging the Hang Seng Index by 2.78 points. The company closed a net of 94 stores in the fourth quarter of fiscal 2024 (81 new stores and 175 closed), which was lower than the expectations of Da Mo and the market, which could put pressure on stock valuations in the short term. Given the macro weakness and changes in the company's strategy, Da Mo is concerned that Chow Tai Fook's online expansion may remain slow in FY2025.

In terms of other blue chips, Lenovo Group (00992) rose 2.64% to HK$8.56, contributing 2.73 points to the Hang Seng Index, SMIC (00981) rose 2.4% to HK$14.52, contributing 2.24 points to the Hang Seng Index, Sands China (01928) fell 4.56% to HK$20.95, dragging the Hang Seng Index by 4.42 points, and Zhongsheng Holdings (00881) fell 3.94% to HK$13.16, dragging the Hang Seng Index by 0.72 points.

In terms of popular sectors

On the market, large technology stocks were generally under pressure, with Alibaba and Tencent both falling nearly 2%. Gold prices rose and fell, and gold stocks collectively adjusted; the price war in the auto market continued to escalate, and auto stocks continued to fall; gaming stocks, Apple concept stocks, car dealers, and sporting goods stocks fell one after another. On the other hand, the new "National Nine Articles" helped to improve market value management and dividends, and the top Chinese stocks rose, led by large infrastructure, and oil stocks, semiconductor stocks, coal stocks, and telecommunications stocks rose.

1. The top stocks of Chinese characters rose vigorously, led by large infrastructure construction. At the close, CRRC (01766) rose 10.59% to HK$4.49, China Communications Construction (01800) rose 5.32% to HK$4.16, China Railway (00390) rose 4.83% to HK$4.12, and China Railway Construction (01186) rose 3.53% to HK$4.98.

SDIC Securities pointed out that the State Council issued a new "National Nine Articles", and then proposed to formulate market value management guidelines and dividend requirements for listed companies, combined with the previous comprehensive promotion policy of central enterprise market value management, it is expected that the follow-up assessment plan of central enterprises is expected to be gradually implemented, and the supervision and management of cash dividends will be increased, and the intrinsic value of construction central enterprises and market return performance will be optimistic about the future, and low-valuation construction central enterprises are expected to fully benefit.

In addition, CRRC announced that it expects to achieve a net profit attributable to shareholders of listed companies of 923 million yuan to 1.046 billion yuan in the first quarter of 2024, a year-on-year increase of 50%-70%, and a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 583 million yuan to 706 million yuan in the first quarter of 2024, a year-on-year increase of 186%-246%.

2. The "three barrels of oil" collectively rose. At the close, PetroChina (00857) rose 2.19% to HK$7.48, Sinopec (00386) rose 1.75% to HK$4.65 and CNOOC (00883) rose 1.47% to HK$19.38.

Oil prices rose sharply on Friday, with Brent oil rising as much as 2.7 percent to above $92 a barrel, having surged 19 percent so far this year. Iran fired missiles and drones at Israeli targets on Saturday, and Israel said it was ready to defend and attack. Oil prices are expected to rise on Monday after Iran attacked Israel over the weekend, but the magnitude of further gains could depend on how Israel chooses to retaliate, analysts said. Baocheng Futures pointed out that in the second quarter of this year, the increase in crude oil premium caused by the continuous spread of geopolitical derivative risks is still the main logic driving the center of gravity of oil prices.

3. Collective pullback in gold stocks. At the close, Lingbao Gold (03330) fell 8.66% to HK$3.69, Shandong Gold (01787) fell 4.88% to HK$18.7, China Gold International (02099) fell 3.04% to HK$49.45 and Zijin Mining (02899) fell 0.56% to HK$17.74.

Gold hit a new high on Friday, rising as high as $2,431.8, but then suddenly dived, falling more than $90. CITIC Futures believes that the reason for the recent rapid rise in precious metals is that the logic of long-term debt and central bank purchases is not enough to support, and the real driving force in March still comes from the expectation of interest rate cuts and the fermentation of geopolitical risks. Despite Iran's attacks on the Israeli mainland over the weekend, both sides showed signs of "silence," while the U.S. said it had "successfully protected Israel and intercepted most of the missile attacks," the bank said. This has led to a pullback in precious metals premiums, coupled with profit-taking on the sentiment side, as well as the uncertainty of short-term interest rate cuts, and precious metals are expected to pull back in April.

4. Auto stocks are broadly weaker. At the close, Xpeng Motors-W (09868) fell 4.72% to HK$29.3, while Li Auto-W (02015) fell 1.53% to HK$116.2.

According to incomplete statistics, as soon as April began, more than 10 brands launched preferential activities one after another. Cui Dongshu, Secretary-General of the Passenger Association, recently issued a document pointing out that the scale of price reductions in the first quarter of 2024 has exceeded 6% of the whole year of 2023, which is equivalent to the total scale of price reductions in 2022. The main impact on price reductions is new energy vehicles such as pure electric vehicles and plug-in hybrids. He said that the price war on the short-term sales promotion effect is not obvious, especially in the case of price instability, the consumer wait-and-see sentiment is particularly strong, which brings certain pressure to the sales of the auto market in the short term.

Popular abnormal stocks

1. Laekna Pharmaceutical-B (02105) soared in the afternoon, up 65.28% to HK$7.95 as of the close.

Laekna Therapeutics' self-developed LAE102 (ActRIIA monoclonal antibody) has been approved by the U.S. FDA for the treatment of obese patients. Hua Chuang Securities previously pointed out that the world's first ActRIIA monoclonal antibody LAE102 can increase muscle and reduce fat, and has the potential to be used in combination with GLP-1RA, with huge market potential and international value.

2. Yidianyun (02416) rose after the results, up 6.9% to HK$3.1 as of the close.

For the three months ended March 31, 2024, the Group's revenue was RMB323 million, up 3% year-on-year, net profit was RMB21.47 million, and adjusted net profit was RMB21.47 million, up 51.1% year-on-year.

3. Sa Sa International (00178) fell throughout the day, falling 9.09% to HK$0.7 as of the close.

Sa Sa International announced that in the fourth quarter (period) from January 1 to March 31, 2024, the Group's turnover decreased by 4.1% year-on-year to HK$1,041 million. Among them, the Group's offline sales decreased by 8.7% to HK$864.7 million, while the Group's online sales increased by 27.1% to HK$176.2 million, accounting for 16.9% of the total turnover.