China Fund News Taylor
Brothers and sisters, today, the world has risen sharply, including A-shares!
The three major A-share indexes collectively rebounded, and continued to rise in late trading, with the Shanghai Composite Index up 0.76%, the Shenzhen Component Index up 0.74%, and the ChiNext Index up 0.7% as of the close.
A total of 4,194 stocks rose in the market, 1,026 stocks fell, and northbound funds bought a net of 4.6 billion yuan.
The concept of low-altitude economy continues to strengthen.
The TMT technology sector rose sharply, and the Industrial Fortune Union rose more than 8%.
Lithium stocks collectively fell, and Tianqi Lithium fell to the limit, the reason for which was that the performance exploded.
In terms of Hong Kong stocks, they have risen sharply for many consecutive days, and the Hang Seng Index has rebounded by about 1,200 points recently.
Tencent surged more than 3%. On April 23, BofA Securities issued a report pointing out that after a meeting with Tencent's management and U.S. investors, it is expected that Tencent's annual repurchase amount may exceed 130 billion Hong Kong dollars, far exceeding market expectations.
At present, Tencent's daily repurchase quota has been increased to HK$1 billion, and if this progress is maintained, the annual repurchase scale will exceed the previous plan of HK$100 billion.
Combined with the dividend announced last year, Tencent is expected to return more than 5% to shareholders this year.
In addition, Tencent has a portfolio of more than $126 billion and may return to shareholders through its investments.
It is worth noting that the scale of Tencent's buyback has exceeded the scale of its shareholder Prosus's shareholding reduction. If Prosus' reduction in the second to fourth quarters is similar to that in the first quarter, it is expected that Tencent's buyback this year will be twice or more than the size of Prosus' reduction.
On the news side, there is good news, a number of international investment banks have updated their views on Chinese stocks!
Goldman Sachs analyst Kinger Lau pointed out in the report that China's capital market reform may bring huge potential revaluation gains, and if A-shares can narrow the gap with the international average in terms of shareholder returns, corporate governance and institutional investor shareholding, there is 20% upside, and if they can catch up with the global leaders in these aspects, the revaluation room is as high as 40%.
UBS's latest report is bullish on mainland A-shares and Hong Kong stocks, and upgraded its investment rating to overweight in response to improving corporate earnings. Securities insiders said that Tencent, Meituan and other large technology stocks have stable profitability and reasonable valuations, and it is worth entering the market at the current level for medium and long-term deployment, but in the short term, we should pay attention to whether the upcoming quarterly results can meet expectations. UBS said that China's holiday consumption data is strong year-to-date, listed consumer goods companies are performing better than overall consumption in the economy, and any rebound in consumer confidence means that household savings are likely to flow to consumption and the market, making UBS more optimistic about corporate earnings.
Morgan Stanley believes that global money is returning to the Chinese stock market. As the bearish sentiment of some funds in the Chinese market has eased, the withdrawal of global long-term investors from A-shares and Hong Kong stocks has been suspended.
In addition, Asian stock markets followed most of the gains in U.S. stocks overnight, with many stock markets opening higher and closing higher, with the Taiwan Weighted Index closing up 2.7%, the biggest one-day gain since February 15, the Nikkei 225 Index closing up 2.42%, and South Korea's KOSPI Index closing up 2.02%.