The three major Hong Kong stock indexes collectively strengthened today. As of the close, the Hang Seng Index rose 1.57% to close at 16503.1 points; the Technology Index rose 2.66% to close at 3351.22 points; the State-owned Enterprises Index rose 2.24% to close at 5642.78 points.
Note: Performance of Hang Seng Technology Index
Judging from the trends of the three major indexes, the Hang Seng Technology Index led the gains, with an intraday increase of nearly 5%. Index constituent stocks such as SenseTime-W (00020.HK), Meituan-W (03690.HK), SMIC (00981.HK), Weibo-SW (09898.HK) rose 7.06%, 4.90%, respectively. 4.88%, 4.69%.
Note: Performance of technology index constituent stocks
The rise in the technology index and component stocks was mainly driven by favorable policies. For example, my country’s central bank has continued to release loose monetary policy signals since the beginning of the year. In addition, the China Securities Regulatory Commission held an intensive symposium on February 18-19 and put forward suggestions including strictly controlling IPO access, increasing delisting and liquidation efforts, being investor-oriented, and promoting more medium and long-term funds to enter the market. The subsequent implementation progress and intensity will affect market risk appetite.
In addition, many U.S. fund managers focusing on Chinese products, including Krane, recently stated that they are actively planning to launch more ETF products based on China themes, and believe that the current valuation attractiveness of Chinese assets is difficult to ignore.
today’s market
Judging from today’s market, most sectors of the market are experiencing gains, including real estate, education, medicine, automobiles and concept stocks with Chinese prefixes.
The first are real estate stocks that benefited from favorable policies, among which Shimao Group (00813.HK), Longfor Group (00960.HK), and Greentown China (03900.HK) rose by 10.42%, 9.49%, and 5.88% respectively.
Note: Performance of real estate stocks
In terms of news, the Ministry of Housing and Urban-Rural Development stated that as of February 20, 214 cities in 29 provinces across the country have established a real estate financing coordination mechanism, and proposed in batches a “white list” of real estate projects that can provide financing support and pushed it to commercial banks, involving a total of 5,349 projects. projects; 162 projects in 57 cities have received bank financing totaling 29.43 billion yuan, an increase of 11.3 billion yuan compared with before the Spring Festival holiday.
Following closely behind are education stocks. On the evening of February 8, the Ministry of Education released a draft of the “Off-campus Training Management Regulations” for comments.Soochow Securitiesresearch reportIt is believed that this shows that the regulatory agencies do not have a negative attitude towards the education and training industry, but require more standardized operations in the industry. Education and training companies that meet the regulatory requirements are also expected to continue to develop.
Boosted by this news, Yuhua Education (06169.HK), Bojun Education (01758.HK), and China Education Holdings (00839.HK) rose by 12.09%, 9.28%, and 7.35% respectively.
Note: Performance of education stocks
Followed by pharmaceutical stocks, among which Asymchem (06821.HK), WuXi AppTec (02359.HK), and WuXi Biologics (02269.HK) rose 5.11%, 4.75%, and 4.05% respectively.
Note: Performance of pharmaceutical stocks
In terms of news, the continued rebound of the pharmaceutical sector may be related to the fact that WuXi AppTec has repeatedly clarified misleading information about the company.As of February 19thannouncementFor example, WuXi AppTec once again issued a clarification regarding the previous “U.S. congressman sent a letter to the U.S. government department requesting sanctions on WuXi.”announcementreiterated that “WuXi AppTec has not, does not, and will not pose a national security risk to the United States, and would reach the same conclusion even if the U.S. government reviewed the company again.”
BOCOM International pointed out that the current valuation is still in the bottom range, and the sector still has high elasticity in the short term.
Finally, most automobile stocks rebounded today, with Great Wall Motor (02333.HK), Li Auto-W (02015.HK), and BYD (01211.HK) rising 4.27%, 4.06%, and 2.25% respectively.
Note: Performance of automobile stocks
In terms of news, according to statistical analysis by the China Association of Automobile Manufacturers, in January 2024, commercial vehicle production and sales increased rapidly year-on-year, with year-on-year growth exceeding 60%. In January 2024, commercial vehicle production and sales completed 327,000 and 324,000 units respectively, a month-on-month decrease of 10.7% and 11.1% respectively, and a year-on-year increase of 66.2% and 79.6% respectively.
In addition to the rise in the above sectors, stocks related to Chinese prefixes including insurance, securities firms, telecommunications, banks, heavy infrastructure, etc. have strengthened one after another, among which Chinalco International (02068.HK), Ping An of China (02318.HK), China Merchants Bank (03968.HK) ) and CICC (03908.HK) rose 36.77%, 6.37%, 5.36%, and 3% respectively.
Taking financial stocks as an example, these companies benefited from the LPR cut in February. CITIC Construction Investment said that the timing of the February LPR cut was in line with expectations, and the magnitude of the five-year cut exceeded market expectations. The policy combination of “no change in one year + downward adjustment in five years” will, on the one hand, help stimulate improvement on the demand side of real estate and underpin the macroeconomy. On the other hand, it reflects the policy’s attitude towards protecting bank interest margins. The negative market sentiment has been greatly dispelled, which is good for bank valuations and embraces high-quality bank targets.
southbound funds
Today there was another inflow of HK$1.082 billion from the south. Since this year, the cumulative inflow has exceeded HK$30 billion.
Note: Performance of southbound funds
Individual stock news and changes
[WuXi United’s two consecutive successes have seen a cumulative increase of over 30%]
WuXi United (02268.HK) rose 11.69%, with a cumulative increase of 31.12% in the past two days. In the news, Hang Seng Indexes announced the results of the quarterly index review, and all changes will take effect from March 4, 2024. It is reported that WuXi Alliance has been included in the Hang Seng Hong Kong Listed Biotechnology Index. CICC pointed out that WuXi United is expected to meet the conditions for inclusion in Shanghai-Hong Kong Stock Connect.
[Meituan surged nearly 5% as the Spring Festival consumer boom is expected to support the company’s performance]
Meituan-W (03690.HK) rose 4.90% to close at HK$77. BoCom International pointed out that the average daily consumption of the Meituan platform during the Spring Festival holiday increased by 36% year-on-year. The year-on-year growth rate of the sinking market was twice that of first-tier cities. Night-time consumption accounted for 53% (a year-on-year increase of 48 percentage points). Off-site dine-in The growth rate of set meal orders is faster than that of the whole country.
(Source of article: Financial Associated Press)
Source of article: Financial Associated Press
Original title: Hong Kong stocks are recovering overall!Hang Seng Technology Index led the gains, with pharmaceuticals and automobiles among the top performers
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2024-02-21 08:27:43
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