Zhitong Financial APP learned that the three major indexes of Hong Kong stocks rose sharply in early trading and then fell, the Hang Seng Index turned down at the end of the session, and the Hang Seng Index once rose more than 2%, rebounding 20% since the low in January, entering a technical bull market. It was as high as 18,031 points in the intraday, hitting the 10,000 mark. At the close, the Hang Seng Index rose 0.54% or 95.76 points to 17,746.91 points, with a full-day turnover of HK$163.417 billion, the Hang Seng China Enterprises Index rose 0.21% to 6,282.86 points, and the Hang Seng Tech Index fell 0.13% to 3,713.32 points.
Ping An Securities pointed out that on the whole, the capital of Hong Kong stocks has improved, policies have been actively introduced, and Hong Kong stocks are still at the bottom of the valuation. In terms of sectors, it is recommended to pay attention to three main lines, one is the Hong Kong stock dividend sector preferred by southbound funds, the second is the overseas sector of advantageous industries, and the third is the Internet sector.
Blue chip performance
Country Garden Services (06098) led the blue-chip gains. As of the close, it rose 11% to HK$5.45, with a turnover of HK$372 million, contributing 1.75 points to the Hang Seng Index. Citi previously pointed out that in the process of corporate transformation, Bifu aims to achieve a low-single-digit increase in profits this year, while the profit margin remains stable. Xu Binhuai was appointed as the President of Country Garden Services in October last year, and under the leadership of the new management team, the company has set a development direction of "seeking progress while maintaining stability", with the goal of focusing on improving service levels, healthy cash flow, strengthening ESG development, and rewarding shareholders through dividends and buybacks.
In terms of other blue-chip stocks, Longfor Group (00960) rose 7.09% to HK$11.78, contributing 2.88 points to the Hang Seng Index, AIA (01299) rose 6.11% to HK$57.3, contributing 59 points to the Hang Seng Index, Sinopharm Group (01099) fell 6.26% to HK$20.2, dragging the Hang Seng Index by 2.87 points, and China Unicom (00762) fell 3.27% to HK$5.92, dragging the Hang Seng Index by 1.9 points.
In terms of popular sectors
On the disk, large technology stocks were mixed, Baidu closed up more than 2%, there is news that Tesla will cooperate with Baidu in China on map and navigation functions; Alibaba, Tencent, etc. fell slightly; Chengdu fully relaxed purchase restrictions, domestic real estate stocks broke out across the board today, property management stocks followed higher, Shimao Group soared more than 70% in the afternoon; benefited from market sentiment catalyze, large financial stocks rose across the board, and domestic insurance stocks led the rise; paper stocks, CRO concept stocks, automobile stocks, photovoltaic stocks, gaming stocks and other outstanding performance. On the other hand, safe-haven sectors such as non-ferrous metals and oil stocks fell significantly.
1. Domestic real estate stocks broke out across the board. At the close, Shimao Group (00813) rose 60.56% to HK$0.57, Sunac China (01918) rose 28.32% to HK$1.45, Sino-Ocean Group (03377) rose 22.81% to HK$0.35, and Agile Group (03383) rose 21.21% to HK$0.6.
On April 28, Chengdu City, Sichuan Province, issued a notice that housing transactions in the city will no longer review the qualifications for house purchases, and Chengdu has become another city that has fully liberalized housing purchase restrictions after Wuhan, Hefei, Nanjing, Changsha and other hot provincial capitals. Up to now, in addition to Hainan Province, among the core cities, only the four first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen, as well as core areas such as Hangzhou (new housing), Tianjin, and Xi'an, still maintain the purchase restriction policy.
According to the China Securities Construction Investment Research Report, Chengdu issued a new policy for the property market, and the city's housing transactions will no longer review the qualifications for house purchases, that is, the purchase restrictions will be completely cancelled. It is expected that after the introduction of the new policy, the decline of the Chengdu market is expected to be reversed. Since 2024, a number of key cities, including the four first-tier cities, have successively relaxed the purchase restriction policy, and the market response has been positive after the policy was introduced. The relaxation of the purchase restriction policy is of great significance to release the demand for housing and promote the recovery of the property market, and the cities that still retain the purchase restriction policy are expected to continue to relax in the future.
2. Auto stocks rose en masse. At the close, Leapmotor (09863) rose 8.22% to HK$27, NIO-SW (09866) rose 2.59% to HK$35.7, Li Auto-W (02015) rose 2.43% to HK$101.3, and Xpeng Motors-W (09868) rose 1.49% to HK$30.75.
Recently, the Ministry of Commerce and other 7 departments have clarified the subsidy policy for car trade-in funds, from the date of issuance of the detailed rules to December 31, 2024, for individual consumers scrapping China III and below emission passenger cars or new energy passenger vehicles registered before April 30, 2018, and purchasing new energy passenger vehicles/2.0L and below fuel vehicles will be given a one-time fixed subsidy, including a subsidy of 10,000 yuan for the purchase of new energy passenger vehicles and a subsidy of 7,000 yuan for the purchase of fuel vehicles.
CMB International pointed out that it is expected that the "trade-in" policy is expected to drive about 1 million new car retail increments, which will catalyze the market's investment sentiment in the automobile industry chain in the short term and benefit independent brands, but the positive stimulus to stock prices may be relatively short-lived, and car companies with competitive advantages are still needed in the medium and long term.
3. Large financial stocks performed well, led by domestic insurance stocks. At the close, AIA (01299) rose 6.11% to HK$57.3; China Pacific Insurance (02601) rose 4.43% to HK$17.9; Xinhua Insurance (01336) rose 3.25% to HK$15.24; Chinese Life (02628) rose 2.33% to HK$10.54.
Judging from the quarterly reports of listed insurance companies disclosed so far, the year-on-year growth rate of NBV of comparable insurance companies exceeded expectations as a whole, of which Ping An of China increased by 20.7% year-on-year; China Taibao increased by 30.7% year-on-year; and Chinese Life increased by 26.3% year-on-year. Soochow Securities pointed out that judging from the bottom of the current fundamentals of insurance stocks: valuation is greater than the impact of performance, and long-term interest rates are the core of the winner and loser. The short-term central bank's statement that the long-end interest rate is too low, the 1Q24 quarterly report exceeds expectations, and the new "national ten" for insurance in 2H24 will catalyze the valuation of the current insurance sector, especially life insurance stocks.
Guojin Securities said that in the short term, the upward rebound of the stock market is superimposed on the performance of the first quarter report (NBV is growing rapidly, and the profit performance of some companies is slightly higher than expected), and the periodic valuation rebound of insurance stocks will continue. In the medium term, we will wait for the opportunity of a phased increase in long-term interest rates under the improvement of economic expectations, as well as the progress of product transformation on the debt side, that is, the decline in rigid debt costs and the stabilization of sales after the decline.
4. Gaming stocks surged higher in early trading. As of press time, Melco International Development (00200) rose 11.97% to HK$6.08, SJM Holdings (00880) rose 3.5% to HK$2.96, Sands China (01928) rose 2.24% to HK$19.14, and Galaxy Entertainment (00027) rose 1.12% to HK$36.
The National Immigration Administration has decided to introduce six policies and measures for the entry and exit management of the convenience of the people and enterprises from May 6. 1. In 20 cities including Beijing, pilot the implementation of the "full online application" for the renewal and reissuance of entry documents. 2. The business endorsement to Hong Kong and Macao implements "smart speedy application" and "nationwide general application". 3. Six categories of talents in Beijing and Shanghai can apply for the talent endorsement for Hong Kong and Macao. 4. Extend the period of stay in Hong Kong and Macao for holders of business endorsements to Hong Kong and Macao. 5. Issuance of multiple "other" endorsements for 1 year to Macao. 6. Persons participating in the "Hengqin and Macao Tour Groups" are allowed to travel to and from Hengqin and Macao multiple times.
In addition, on 19 April, MGTO expects that the number of visitors will reach an average of 130,000 visitors per day during the upcoming May Day Golden Week, a significant increase compared to the number of visitors during the Qingming and Easter holidays. At the same time, Macau's hotel industry also has optimistic expectations for the occupancy rate during the Golden Week, expecting to reach 90% full.
Popular abnormal stocks
1. UBTECH (09880) rose significantly, up 7.27% to HK$188.9 as of the close.
The Beijing Humanoid Robot Innovation Center recently released the world's first full-size humanoid robot "Tiangong" with pure electric drive for anthropomorphic running, which can run stably at a speed of 6 kilometers per hour. The innovation center was jointly established by UBTECH as the leading unit and general manager unit, together with industry leaders such as Xiaomi Robotics and Jingcheng Electromechanical.
2. AIA (01299) rose throughout the day, up 6.11% to HK$57.3 as of the close.
AIA reported a record quarterly record new business value of US$1,327 million in the first quarter, up 31% year-on-year at constant exchange rates and 27% in real terms, with double-digit growth across all reporting segments. In addition, the Group announced details of its enhanced capital management policy, including the addition of US$2 billion to the existing US$10 billion share repurchase program, bringing the total to US$12 billion.
3. Hong Kong Broadband (01310) fell after the results, and as of the close, it fell 16.56% to HK$2.52.
Xiao Mo pointed out that Hong Kong Broadband announced disappointing results for the first half of fiscal year 2024, with dividends per share falling 25% to HK$0.15 per share, mainly due to a decrease in broadband subscribers, shrinking corporate revenues, and a sharp increase in interest expenses of 51%. The bank believes that structural problems such as poor execution and heavy debt burden in Hong Kong will not improve in the short term, so it maintains an "underweight" rating.
4. Air China (00753) shares were under pressure, falling 4.11% to HK$3.97 as of the close.
UBS pointed out that Air China's revenue in the first quarter according to Chinese accounting standards was 40.1 billion yuan, a year-on-year increase of 60%, but recorded a net loss of 1.67 billion yuan, a year-on-year narrow, significantly worse than the bank and market expectations. The Company has not provided an updated outlook. In addition, Air China announced the purchase of 100 C919 aircraft from COMAC for a total listing price of US$10.8 billion, which the bank believes will be lower because COMAC offers significant discounts.