The Hang Seng Index closed up 0.42%, and non-ferrous metal stocks led strongly Domestic real estate stocks generally fell

Zhitong Financial APP learned that Hong Kong stocks continued to rise today, the Hang Seng Index and the National Index continued to brush new highs in the year, and the Hang Seng Index once turned down at the end of the session, having previously risen 1%. At the close, the Hang Seng Index rose 0.42% or 82.61 points to 19,636.22 points, with a full-day turnover of HK$156.477 billion, the Hang Seng China Enterprises Index rose 0.44% to 6,964.99 points, and the Hang Seng Tech Index rose 0.55% to 4,135.38 points.

Huatai Securities said that the real estate policy is conducive to intensive release, and the two-pronged approach of destocking + expanding demand is expected to boost foreign investors' expectations of domestic fundamentals. U.S. inflationary pressures have eased marginally, and the Fed has returned to the pendulum of interest rate cuts. The performance of Internet Chinese concept stocks in the first quarter exceeded expectations, helping Hong Kong stocks to rise flexibly. The capital side may be the main driver of the rebound of Hong Kong stocks, and domestic and foreign investors work together to build an incremental environment for the capital side of Hong Kong stocks, and the liquidation of short selling funds also contributes to the main increase.

Blue chip performance

Li Ning (02331) led the blue chips. As of the close, it rose 7.27% to HK$23.6, with a turnover of HK$1.108 billion, contributing 5.97 points to the Hang Seng Index. According to Guosen Securities, from the perspective of data on the recognition of goods, among domestic brands, Li Ning's sales volume ranks first, with TOP1-3 sales of 41,000/36,000/21,000 respectively. Among the total sales of the top 1-3 products of the brand in April, the sales volume of Li Ning was 98,000 pairs, an increase of 40.0% month-on-month.

In other blue-chip stocks, Zijin Mining (02899) rose 4.91% to HK$19.66, contributing 7.87 points to the Hang Seng Index; Li Auto-W (02015) rose 4.17% to HK$99.9, contributing 8.65 points to the Hang Seng Index; Haier Smart Home (06690) fell 4.17% to HK$29.9, dragging the Hang Seng Index by 4.97 points; Chinese Life (02628) fell 2.62% to HK$12.66, dragging the Hang Seng Index by 3.99 points.

In terms of popular sectors

On the disk, large technology stocks diverged today, with JD.com up more than 2%, Kuaishou up more than 1%, and Alibaba and others lower; Non-ferrous metal stocks broke out, gold and silver hit new highs, and copper and nickel continued to soar; Gaming stocks, airline stocks, auto stocks, lithium battery stocks, coal stocks, power stocks, etc. have all risen. On the other hand, domestic real estate stocks that had risen sharply before generally fell today, with Shimao Group closing down more than 11%; Home appliance stocks and infrastructure stocks were among the top decliners.

1. Non-ferrous metal stocks exploded. At the close, China Silver Group (00815) rose 54.1% to HK$0.47, Lingbao Gold (03330) rose 13.41% to HK$3.72, China Gold International (02099) rose 7.96% to HK$58.3, and Aluminum Corporation of China (02600) rose 5.28% to HK$5.78.

In the morning of May 20, the metal market rose strongly. In terms of precious metals, spot gold hit a record high of $2439.171 per ounce, and spot silver stood at $32 per ounce, a new high in 11 years.

Galaxy Securities pointed out that although the overall performance growth rate of the industry in 2024Q1 has accelerated to catch up with the bottom, the structure has improved, and some sub-sectors have shown signs of reversal. The recovery of the domestic economy and the market's trading of the Fed's interest rate cut expectations have begun to show positive feedback, gold, copper, zinc, tin and other commodities and non-ferrous metal prices in March and April have jumped up, which will drive the average price of non-ferrous metals in the second quarter and the significant rise of the center of non-ferrous metal enterprises.

2. Airline stocks extended their rally. At the close, Air China (00753) was up 6.27% at HK$4.41, China Southern Airlines (01055) was up 5.06% at HK$3.32, Capital Airport (00694) was up 4.29% at HK$2.92 and China Eastern Airlines (00670) was up 4.19% at HK$2.24.

Guotai Junan believes that the off-peak season of the aviation market in 2024 will be obvious and will continue, with strong demand in the peak season and good recovery of supply and demand, resilience in the off-season but still pressure on supply and demand, and steady international flight increases will continue to promote the recovery of supply and demand in the off-season.

Huatai Securities pointed out that April is still the off-season for civil aviation, and the extreme weather in South China has caused airlines to shrink their capacity investment month-on-month, but the passenger load factor has improved marginally from the low point in March. Looking ahead, business travel in the off-season still needs to be tracked, but referring to the data of the Spring Festival and the "May Day holiday", the demand for private travel such as tourism and family visits is still strong, and it is expected that the demand will peak again in the summer transportation. In addition, the continuous relaxation of the visa-free policy in mainland China may be expected to drive demand for international routes. In the medium and long term, the bank believes that the tightening of civil aviation supply is highly predictable, which will promote the improvement of the aviation sector.

3. Coal and oil stocks rose in the afternoon. At the close, CNOOC (02883) rose 6.36% to HK$9.2, Yancoal Australia (03668) rose 5.66% to HK$32.65, China Coal Energy (01898) rose 3.8% to HK$9.02, and PetroChina (00857) rose 1.98% to HK$7.72.

Shanxi Securities pointed out that it is difficult to further loosen the relationship between coal supply and demand in 2024, and with the arrival of the peak summer season, it is expected that domestic coal prices will have little room for further decline; In addition, there are still marginal improvement expectations for economic stabilization policies such as real estate and infrastructure in the later stage, and the rigidity of coal demand is strong. From the perspective of sector investment value, with the improvement of market value management status and the long-term expectation of a low interest rate environment, the valuation of "high dividend + central enterprises" is still expected to increase in the later stage.

Everbright Securities said that since May 2024, affected by the easing of the situation in Israel and Iran, the oil price center has fallen from the high in April. In addition, oil prices continued to trade sideways in May due to weaker expectations of interest rate cuts by the Federal Reserve and concerns about oil demand. Looking ahead, the bank believes that the demand side of crude oil is expected to usher in a seasonal reversal, and the supply side OPEC+ is still expected to introduce a production restriction policy.

4. Auto stocks are outperforming. At the close, Xpeng Motors-W (09868) was up 7.54% at HK$34.25, Leapmotor (09863) was up 6.71% at HK$33.4, Li Auto-W (02015) was up 4.17% at HK$99.9 and Geely Automobile (00175) was up 4.11% at HK$10.64.

From May 1 to 12, the Federation of Passenger Cars counted 241,000 new energy retails, a year-on-year increase of 31% and a month-on-month increase of 10%, and a total of 2.692 million retail sales since the beginning of this year, a year-on-year increase of 33%. Southwest Securities pointed out that with the implementation of the national policy of "exchanging the old for the new" and the introduction and follow-up of corresponding policies and measures in various places, it is beneficial to the gradual strengthening of the auto market. On May 15, the General Office of the Ministry of Industry and Information Technology issued the "Notice of the Five Departments on Carrying out the 2024 New Energy Vehicles to the Countryside Activities" to announce the models of new energy vehicles going to the countryside in 2024. Driven by the trade-in policy and the activities of new energy vehicles going to the countryside, the penetration rate of new energy passenger vehicles is expected to continue to increase.

In addition, Leapmotor announced that its revenue in the first quarter was 3.4862 billion yuan, an increase of 141.7% year-on-year; The net loss attributable to shareholders was 1,012.9 million yuan, a year-on-year decrease of 10.6%. During the period, Leapmotor delivered 33,410 vehicles, a year-on-year increase of 217.9%. Among them, T03 delivered 9,433 vehicles, a year-on-year increase of 140.3%; The delivery of C11 and C01 increased significantly, with 12,122 and 3,998 deliveries respectively, a year-on-year increase of 129.1% and 209.4% respectively.

5. Domestic real estate stocks generally retreated. At the close, Shimao Group (00813) fell 11.36% to HK$1.17, R&F Properties (02777) fell 10.53% to HK$1.19, Sino-Ocean Group (03377) fell 9.52% to HK$0.57, and Metro Development (01030) fell 6.98% to HK$1.6.

Debang Securities pointed out that the policy side has been further optimized, the real estate financing coordination mechanism has been gradually implemented, and the demand side has reduced the down payment ratio, reduced the interest rate of provident fund loans, and canceled the lower limit of the mortgage interest rate, which will help further release effective demand and promote the stabilization and recovery of the property market. From the perspective of cumulative year-on-year growth, the cumulative year-on-year decline in residential sales area and sales in April still declined significantly, and the sales side has not yet seen a significant recovery. Looking ahead, with the further implementation of the real estate financing coordination mechanism, the "trade-in" to further open up the channels for the replacement of new houses and second-hand houses, and the government's acquisition of existing houses to remove inventory, market sales are expected to stabilize and recover.

Popular abnormal stocks

1. Suteng Juchuang (02498) hit a new high, up 45.86% to HK$60.75 as of the close.

The Hang Seng Index recently announced the latest quarterly inspection results, among which Suteng Juchuang was included in the Hang Seng Composite Index, and the changes will take effect from June 11. It is understood that being selected as a constituent stock of the Hang Seng Composite Index indicates that Suteng Juchuang has met the qualifications for inclusion in the Hong Kong Stock Connect, and is expected to have a positive impact on the company's stock liquidity in the future and attract more capital inflows.

2. KEEP (03650) was strong throughout the day, up 13.16% to HK$8.34 as of the close.

Keep announced that the company will invest no more than HK$100 million in share repurchases in the open market. More than 90% of the HK$16 million buyback amount announced by Keep for the first time has been used. The Company believes that the share buyback will demonstrate the Company's confidence in its own business prospects and prospects, which will ultimately benefit the Company and create value for its shareholders.

3. Vitasoy International (00345) released a profit update, up 11.54% to HK$7.25 as of the close.

Vitasoy International announced that the Group expects profit attributable to equity holders to be HK$106 million to HK$126 million for the financial year ended 31 March 2024, representing a year-on-year increase of approximately 132% to 176%. According to the announcement, the main reason for the increase was the significant increase in operating profit of the Chinese mainland business.