The Hang Seng Index closed up 0.8%, re-elevating the 10,000-9 mark, and most of the technology stocks were higher, and infrastructure and shipping stocks performed strongly

Zhitong Financial APP learned that the three major indexes of Hong Kong stocks opened low and high today, the Hang Seng Index stood at the 19,000 mark again since August last year, and the Hang Seng Index also broke through the 4,000-point mark. At the close, the Hang Seng Index rose 0.8% or 151.38 points to 19,115.06 points, with a full-day turnover of HK$147.238 billion, the Hang Seng China Enterprises Index rose 0.64% to 6,761.64 points, and the Hang Seng Tech Index rose 1.42% to 4,018.69 points.

Huatai Securities pointed out that in the short term, April financial data may catalyze high dividends vs Hengke's excess returns. In the medium term, the internal and external macro environment, the market value management demands of central state-owned enterprises and the dynamic dividend rate are expected to increase, which together point to the dividend assets of Hong Kong stocks or continue to show allocation value. From the perspective of capital, southbound + trading order + short covering is the main force of incremental funds. In terms of allocation, continue to be bullish on Hong Kong stock dividends, and moderately combine prosperity varieties under the main line of "winning rate", and pay attention to public/e-commerce/local life.

Blue chip performance

Orient Overseas International (00316) led the blue-chip gains. As of the close, it rose 5.95% to HK$137.2, with a turnover of HK$280 million, contributing 1.58 points to the Hang Seng Index. Palestinian-Israeli peace talks superimposed on the price increase of shipping companies, and the European line container shipping index soared by 14% to a new high. Nanhua Futures pointed out that the shipments in June were good, and there were shipping companies on the supply side to regulate and control the capacity, and the pressure on supply and demand was eased, which was good for the futures price. What is the trend of the follow-up futures price, on the one hand, depends on whether the shipping company's price can be landed, and on the other hand, it depends on whether the Palestinian-Israeli conflict has further development.

In terms of other blue-chip stocks, WuXi AppTec (02359) rose 4.46% to HK$39.8, contributing 0.93 points to the Hang Seng Index, Sands China (01928) rose 4.24% to HK$20.9, contributing 3.78 points to the Hang Seng Index, CNOOC (00883) fell 2.44% to HK$20, dragging the Hang Seng Index by 12.21 points, and Sino Biopharma (01177) fell 1.61% to HK$3.06, dragging the Hang Seng Index by 0.88 points.

In terms of popular sectors

On the market, most of the large technology stocks rose to support the market rebound; Guangzhou plans to raise the price of tap water, and water stocks perform well; For the first time this year, the bidding volume of EMUs exceeded that of last year, and high-speed rail infrastructure stocks strengthened; The European line container shipping index hit a new high, and shipping stocks continued to rise; The hearing on the new version of the Biosafety Act involving WuXi will be held on the 15th, and the contract immunity of US pharmaceutical companies may be extended for 8 years. Gaming stocks, power stocks, home appliance stocks, domestic insurance stocks, and Chinese-funded brokerage stocks have all risen. On the other hand, the United States intends to impose four-fold tariffs on China's electric vehicles, and most auto stocks are lower, while oil stocks and gold stocks are among the top decliners. In addition, domestic real estate stocks diverged today, with Shimao Group rising 32% at one point and Sunac China falling nearly 3%.

1. Tech stocks are mostly higher. At the close, Tongcheng Travel (00780) was up 6.7% at HK$22.3, Bilibili-W (09626) was up 6.09% at HK$114.9, Alibaba-SW (09988) was up 4.11% at HK$81.15 and Meituan-W (03690) was up 3.12% at HK$122.3.

From May 13, Internet companies will release their results for the first quarter of 2024. Bank of Communications International pointed out that the performance of OTA and JD.com may be better than market expectations, and the stock price trend has been basically reflected. Third-party data shows that Tencent Music's turnover from March to April maintained a high growth trend, which may mean that the net increase in members in the first and second quarters may exceed expectations. Meituan's performance remains robust, and the probability of a rebound after the valuation bottoms out (the lowest point of the stock price corresponds to 12 times P/E in 2024) increases. Orient Securities believes that the Internet sector is sustainable. The opportunity may come from the overall rise of the Hang Seng Index, due to the continuous improvement of returns such as liquidity, corporate profitability & dividend repurchase, etc., the Internet sector will get the opportunity to overshoot in the structural unevenness.

2. High-speed rail infrastructure stocks strengthened. As of the close, CRRC (01766) rose 7.28% to HK$5.01, and Times Electric (03898) rose 5.96% to HK$32; China General (03969) rose 5.11% to HK$3.5, while China Railway (00390) rose 4.5% to HK$4.41.

On May 10, the National Railway Procurement Platform issued a tender announcement for EMUs. Shenwan Hongyuan pointed out that 24 years of the first bidding of 165 groups, last year's first bidding of 103 groups, an increase of 60%, the bidding is all 350km / h models, has exceeded last year's 164 groups of bidding volume, the bidding volume in the past four years in the bidding belongs to the single most one, the annual view of the national railway group this year still has 2-3 bids, is expected to exceed 300 groups of bidding throughout the year. Everbright Securities believes that the rail transit equipment industry will directly benefit from the growth of railway investment, the growth of EMU demand brought about by the recovery of passenger flow, and the increase in demand for locomotive renewal and EMU maintenance.

3. Water stocks have performed well. At the close, China Water (00855) rose 10.13% to HK$5.76, Beijing Enterprises Water Group (00371) rose 7.59% to HK$2.41, and Guangdong Investment (00270) rose 2.83% to HK$4.73.

On May 9, a hearing on the tap water price reform plan was held in the central urban area of Guangzhou, and the results showed that 17 people supported the price reform, of which 9 people were in favor of the first plan, 6 people were in favor of the second plan, and the plan with the largest increase in the water price for residents received more votes. Everbright Securities pointed out that the local water industry is expected to enter a new round of price increase cycle to ensure the high-quality operation of existing projects. The bank is optimistic that high-quality water enterprises can achieve steady development through high-quality operation capabilities. Zhongtai International previously said that the 2024 tap water price increase cycle is expected to be launched nationwide, and there are investment highlights in the water supply industry.

4. Shipping stocks extended their rally. At the close, Orient Overseas International (00316) rose 5.95% to HK$137.2, COSCO Shipping Holdings (01919) rose 5.64% to HK$12.36, and COSCO SHIPPING Development (02866) rose 5.26% to HK$1. SITC International (01308) rose 3.84% to HK$20.

Geographically, Palestinian-Israeli negotiations have once again fallen into crisis due to Israel's approval of the expansion of military operations in Rafah. On the demand side, in the context of the price increase of the two rounds of liner companies in May, Maersk recently announced that it will start raising prices in June. Market analysts pointed out that the current idle capacity in the market is limited, especially in the context of the Red Sea detour, the current capacity is relatively insufficient, and the detour effect is becoming more and more obvious. It is worth noting that Maersk previously warned that the Red Sea crisis could lead to a 20% reduction in capacity in the second quarter. The container shipping index (European line) closed up nearly 15% during the day, reaching a new high.

5. Gaming stocks rose today. At the close, SJM Holdings (00880) was up 8.62% at HK$3.15, Wynn Macau (01128) was up 5.13% at HK$8.4, MGM China (02282) was up 4.66% at HK$15.26 and Sands China (01928) was up 4.24% at HK$20.9.

The National Exit and Entry Administration announced on the 11th that the State Council approved the addition of eight cities, including Taiyuan City in Shanxi Province and Hohhot City in Inner Mongolia Autonomous Region, as "Individual Visit" cities for mainland China to Hong Kong and Macao. Together with the expansion of the Individual Visit Scheme to Xi'an in Shaanxi Province and Qingdao in Shandong Province from 6 March this year, the Individual Visit Programme will cover 59 cities, including all provincial capitals in China. In addition, the new policy for mainland residents to travel to Hong Kong and Macao came into effect on 6 May. Galaxy Securities believes that this will have a significant positive impact on Macau's gaming industry in the short, medium and long term.

6. Auto stocks are generally weak. At the close, Xpeng Motors-W (09868) fell 3.76% to HK$30.75, while Li Auto-W (02015) fell 0.47% to HK$105.

According to the data of the Passenger Car Association, the retail sales of the national passenger car market in April were 1.532 million units, down 5.7% year-on-year and 9.4% month-on-month. Since the beginning of this year, the cumulative retail sales have reached 6.364 million units, a year-on-year increase of 8.0%. In April, the wholesale sales of passenger car manufacturers nationwide were 1.952 million units, a year-on-year increase of 9.8% and a month-on-month decrease of 11.2%. In addition, it has been reported that the United States intends to impose fourfold tariffs on Chinese electric vehicles, which is expected to increase the tariff rate from 25% to about 100%.

Popular abnormal stocks

1. Lianhua Supermarket (00980) was strong throughout the day, up 23.81% to HK$0.39 as of the close.

The Company entered into a share subscription agreement with Bailian Group, under which the Company intends to issue no more than 360 million new domestic shares to Bailian Group, at a premium of approximately RMB1.00 per new domestic share, representing a premium of approximately 249.37% over the closing price of approximately HK$0.315 per share quoted by H Shares on the Stock Exchange on the last trading day, and is expected to raise approximately RMB360 million and raise a net of approximately RMB358 million, which is intended to be used for business ecological transformation and increase the Company's general working capital.

2. Riying Holdings (01741) plummeted, down 58% to HK$0.105 as of the close.

Recently, the news of private equity Ruidafeng "running away" has gone viral in the market. It is reported that at present, the private placement product can no longer be redeemed, the company's actual controller has lost contact, and some investors have reported the case. On May 10, the office space on the 3rd floor of Courtyard 10 of Ruifengda's office has been closed by the Pudong New Area Economic Investigation Detachment. In addition, Ruifengda's largest affiliate, Riying Holdings (Riying Investment Holding Group Co., Ltd.), has also restricted access to its office in Building 8 of Hui Mansion.