Zhitong Financial APP learned that Hong Kong stocks rose strongly today, and the Hang Seng Index and the National Index both refreshed new highs this year. Among them, the Hang Seng Index was the strongest, rising more than 5% intraday. At the close, the Hang Seng Index rose 2.12% or 366.61 points to 17,651.15 points, with a full-day turnover of HK$157.242 billion, the Hang Seng China Enterprises Index rose 2.44% to 6,269.76 points, and the Hang Seng Tech Index rose 4.61% to 3,718.27 points. This week, the Hang Seng Index rose 8.8%, the HSCEI rose 9.1%, and the Hang Seng Index rose 13.43%
China Securities Construction Investment pointed out that the core reason for the recent rise in Hong Kong stocks is the improvement of the capital side. In the second half of last year, the biggest suppression of Hong Kong stocks was the systematic outflow of foreign capital to Japan, and the recent focus of foreign investment allocation in the Asia-Pacific region has shifted from Japan to Hong Kong stocks, and the liquidity of Hong Kong stocks has been greatly improved. In terms of domestic investment, driven by favorable policies and high dividends, southbound funds have increased sharply recently, further consolidating the upward trend of Hong Kong stocks. The bank believes that the best long window for Hong Kong stocks this year has arrived.
Blue chip performance
Longfor Group (00960) led the blue-chip gains. As of the close, it rose 12.24% to HK$11, with a turnover of HK$769 million, contributing 4.44 points to the Hang Seng Index. UBS turned bullish on China's real estate market. John LamJ, head analyst of UBS Greater China Real Estate Research, who was bearish on Evergrande three years ago, said in a recent interview: "After three years of bearishness, we have become more optimistic about China's real estate sector for the first time thanks to government assistance. ”
In terms of other blue chips, China Overseas Land & Investment (00688) rose 8.22% to HK$13.96, contributing 6.39 points to the Hang Seng Index, Sunny Optical Technology (02382) rose 7.46% to HK$38.15, contributing 2.97 points to the Hang Seng Index, Sinopharm Group (01099) fell 0.92% to HK$21.55, dragging down the Hang Seng Index by 0.41 points, and China Resources Power (00836) fell 0.91% to HK$19.64, dragging the Hang Seng Index by 0.55 points.
In terms of popular sectors
On the market, large technology stocks rose across the board, Kuaishou rose more than 7%, JD.com rose more than 5%; UBS turned optimistic about China's real estate market, and domestic real estate stocks were strong again; the State Council proposed to concentrate on building a national team in the financial industry, and industry mergers and acquisitions are expected to rise again, and Chinese-funded brokerage stocks broke out across the board, led by Guolian Securities, which rose 25%; photovoltaic stocks, pharmaceutical stocks, non-ferrous metals, and catering stocks have all improved. On the other hand, power stocks, wind power stocks, coal stocks and other stocks bucked the trend, and the performance of the wind power sector was temporarily under pressure, with Longyuan Power falling more than 4%. In addition, Hongji Group Holdings plunged by more than 70% in the afternoon, and its total market value fell below HK$100 million.
1. Domestic property stocks continue to be strong. At the close, CIFI Holdings Group (00884) rose 15.38% to HK$0.3, Sunac China (01918) rose 15.31% to HK$1.13, Longfor Group (00960) rose 12.24% to HK$11, and Sino-Ocean Group (03377) rose 9.62% to HK$0.285.
John LamJ, head analyst of UBS Greater China Real Estate Research, said in a recent interview: "After three years of bearishness, we have become more optimistic about China's real estate sector for the first time thanks to government assistance. He pointed out that in 2025, with the support of factors such as 1) government policy force, 2) China's leverage is lower than the scenario of the United States and Japan, and 3) supply is reduced and supply and demand may reverse next year, the supply and demand of real estate will reach the historical average level in 2025, and the stocks of real estate companies with heavier land reserves in 21 major cities will rise. It is worth noting that the analyst shocked the market by downgrading Evergrande to sell in January 2021.
According to the China Real Estate Industry Association, in the first quarter of this year, the property market has seen a partial recovery, from the perspective of first-tier cities, Beijing, Shanghai, Guangzhou, Shenzhen and Shenzhen, Shenzhen performed the best, after the Spring Festival, whether it is second-hand residential transactions or new housing project visits, decentralization has shown a recovery market. In addition, according to a recent report by the Financial Associated Press, CIFI completed 24 "white list" projects in the first quarter of this year, with a post-equity rollover amount of 5.06 billion yuan, a post-equity financing replacement amount of 508 million yuan, and an annualized interest saving of 120 million yuan after equity.
2. Chinese brokerage stocks broke out across the board. At the close, Guolian Securities (01456) rose 25.08% to HK$3.69, CICC (03908) rose 10.48% to HK$9.8, China Galaxy (06881) rose 9.56% to HK$4.24, and China Securities (06066) rose 7.2% to HK$6.25.
The State Council recently issued a report, proposing to timely and rationally adjust the proportion of state-owned financial capital in banking, insurance, securities and other industries, and concentrate on building a "national team" in the financial industry. In addition, Guolian Securities announced that the company intends to issue shares to acquire 95.48% of the shares of Minsheng Securities held by 45 counterparties. This indicates that the restructuring and integration of the two securities companies has entered the substantive stage.
Guotai Junan Securities previously pointed out that industry integration is expected to accelerate, and it is expected that the introduction of policies will be more conducive to professional and compliant head brokerages. The "New Nine Measures" will strengthen supervision, promote the return of the securities and fund industry to its origins, and support leading institutions to enhance their core competitiveness through mergers and acquisitions, restructuring and organizational innovation. It is expected that industry consolidation is expected to accelerate, which will benefit leading brokerages with professional capabilities and compliance operations.
3. Auto stocks are broadly stronger. At the close, Xpeng Motors-W (09868) rose 8.8% to HK$30.3, Leapmotor (09863) rose 8.48% to HK$24.95, NIO-SW (09866) rose 7.24% to HK$34.8, and BYD (01211) rose 4.42% to HK$212.8.
According to the data of the Passenger Car Association, the terminal retail sales of narrow passenger cars in March were 1.69 million, a year-on-year increase of 6.2% and a month-on-month increase of 52.8%. With the warming of temperatures and the sharp drop in terminal prices, the new energy market accelerated its recovery, with sales of 714,000 units in March, a year-on-year increase of 30.5% and a penetration rate of 42.3%. The passenger association pointed out that with the Beijing Auto Show approaching at the end of the month, manufacturers began to make efforts, since the middle of the month, there have been new brands, new models have come out, consumer attention to the car market has increased significantly, is expected to stimulate the early pent-up demand for car purchases to accelerate the release, the national level car trade-in policy is about to come out, the overall car market is ready to go.
Dongguan Securities pointed out that the auto market continued to wage a price war in April, and the detailed rules for the trade-in of cars around the country were gradually introduced, and downstream demand is expected to maintain growth. Driven by the recovery of demand, the production schedule of the industrial chain is on an upward trend month-on-month, and the overall price of the industrial chain has been stable recently, and the prosperity of the industry is improving. It is expected that the profitability of the industrial chain in Q1 will build a low point for the whole year, and Q2 is expected to be marginally repaired.
4. The non-ferrous sector performed well. At the close, CMOC (03993) rose 6.71% to HK$7.63, Shandong Gold (01787) rose 4.35% to HK$17.76, Jiangxi Copper (00358) rose 3.66% to HK$16.42 and China Hongqiao (01378) rose 2.6% to HK$11.06.
Real GDP growth in the United States in the first quarter fell sharply short of expectations, recording the lowest growth rate since Q1 last year. U.S. stocks fell sharply overnight, U.S. Treasury yields collectively closed higher, and the weakening of the dollar index spurred a slight rise in gold prices. Spot gold closed above $2,330, while COMEX gold futures rose 0.27% to $2,344.60. In addition, driven by the continuous rise in international gold prices, copper prices continued to rise, with the LME (London Metal Exchange) main copper futures contract price once touching 9,900 US dollars / ton, a new high since the end of April 2022, and the main Shanghai copper contract also once broke through the 80,000 yuan/ton mark, refreshing the high point in nearly 18 years. In addition to copper metal, aluminum prices continued to fluctuate and rise, and on April 15, domestic spot aluminum prices once refreshed a new high in 22 months, reaching 20,750 yuan/ton. On April 16, the latest price of spot aluminum was 20,110 yuan/ton, an increase of 7.71% from the low point in February.
Popular abnormal stocks
1. SenseTime-W (00020) shares doubled during the week, up 43.37% to HK$1.19 as of the close.
On April 23, SenseTime held a technical exchange day at Shanghai Lingang AIDC, in which the company launched the 600 billion parameter large model "Ririxin 5.0", which has greatly improved its knowledge, mathematics, reasoning and code capabilities, and comprehensively benchmarked its comprehensive performance against GPT-4Turbo.
2. Tuhu-W (09690) was strong throughout the day, up 16.1% at HK$23.15 as of the close.
On April 26, according to the announcement released on the website of the Shenzhen Stock Exchange, according to the relevant provisions of the "Implementation Measures for Shenzhen-Hong Kong Stock Connect Business of the Shenzhen Stock Exchange", the list of underlying securities of the Hong Kong Stock Connect has been adjusted and will take effect from April 26, 2024, and Tuhu-W has been transferred to the list of underlying securities of the Hong Kong Stock Connect.
3. Yue Yuen Group (00551) released a profit update, up 15.83% to HK$14.34 as of the close.
Yue Yuen Group expects profit attributable to owners of the Company to increase by approximately 95% to 100% year-on-year in the first quarter. Profit for the same period last year was US$50.8 million. Mainly benefited from the gradual recovery of the global footwear fulfillment industry and the normalization of orders, which led to the improvement of capacity utilization rate and production efficiency, coupled with the support of the low base period effect. In addition, a one-time gain of approximately US$12.6 million was generated from the sale of a portion of an associate during the period.
4. Fuyao Glass (03606) rose after the results, up 11.57% to HK$47.25 as of the close.
Fuyao Glass released its report for the first quarter of 2024, with operating income of 8.836 billion yuan (RMB, the same below), a year-on-year increase of 25.29%, and net profit attributable to shareholders of listed companies of 1.388 billion yuan, a year-on-year increase of 51.76%.