The Hang Seng Index dips into the bottom, buybacks increase and holdings increase, and the negative news continues. The trend of pharmaceutical stocks is still weak｜Hong Kong stock market weather vane-Mobile Financial Industry

The Hang Seng Index dips into the bottom, buybacks and increased holdings on the market continue to be negative, and the trend of pharmaceutical stocks is still weak｜Hong Kong stock market weather vane

Feng Yi, Financial Associated Press

2023-12-06 20:22:32

Financial Associated Press, December 6 (Editor Feng Yi) Hong Kong stocks stopped falling and rebounded today, and the three major indexes surged higher in the afternoon. The Hang Seng Technology Index closed up 1.76% today, ending its sixth consecutive losing streak. The Hang Seng Index and the State-owned Enterprises Index rose 0.83% and 0.97% respectively, ending the previous three consecutive trading days of decline.

Let’s take a look at today’s market hot spots. They are as follows: Technology stocks rebounded, and the trading volume of the Hang Seng Index fell instead of rising; after the Hang Seng Index fell below the 10,000 mark, on-market repurchases increased holdings; micro-invasive stocks fell collectively. The trend of the pharmaceutical sector continues to be weak.

[The rebound sentiment of technology stocks has picked up and the trading volume of the Hang Seng Index has declined instead of rising]

On the market today, heavyweight technology stocks generally rebounded, driving market sentiment. Among them, NetEase rose 4.56%, Baidu rose 3.2%, Kuaishou rose more than 2%, Meituan, JD.com, and Xiaomi all rose, but Alibaba bucked the trend and fell 0.5%.

In terms of other hot spots, the lithium battery sector continued to rebound strongly, gaming stocks were generally more active, and concepts such as film and television, consumer electronics, automobiles, sporting goods, and semiconductors all rose. However, sentiment in the pharmaceutical and medical sectors remained weak, with securities firms, oil and other sectors performing sluggishly.

In addition, although the Hang Seng Index bottomed out and rebounded today, the trading volume was only HK$98.864 billion, showing a lack of short-term bull confidence. Data disclosed by the Hong Kong Stock Exchange shows that a total of 607 Hong Kong stocks were short-sold on December 6, with a total short-selling amount of HK$8.995 billion.

[After the Hang Seng Index fell below the 10,000 mark, on-site buybacks increased holdings]

Today, Alibaba announced that it will pay its first annual dividend for fiscal year 2023, totaling approximately US$2.5 billion (approximately 18 billion yuan), which has attracted a lot of attention.

It is worth noting that since the Hang Seng Index fell below the 17,000-point mark, the market has accelerated its holdings and repurchases in recent days.

Today, Wang Chuanfu, the actual controller of BYD Co., Ltd. (01211.HK), proposed to repurchase A-shares for 200 million yuan, and Dai Huizhong, chairman of Hisense Home Appliances (00921.HK), also proposed to repurchase A-shares for up to 250 million yuan.

In addition, two companies, WuXi Biologics and Miniso, which have experienced significant declines recently, also intend to repurchase or increase their holdings of the company’s shares through senior executives. WuXi Biologics even announced that it intends to repurchase shares of no more than US$600 million.

In addition, the previous day, Swire Pacific’s board of directors approved a HK$6 billion buyback plan, and Sands China’s controlling shareholder LVS planned to increase its stake in the company for HK$1.951 billion.

Overall, the above-mentioned companies that intend to repurchase or have management plans to increase their holdings have all experienced a short-term rebound. The subsequent repurchase dynamics of related companies on the market are also worthy of investors’ attention.

[Minimally invasive departments collectively fell and the pharmaceutical sector continued to weaken]

The Hong Kong stock market rebounded significantly today, but the trend of the pharmaceutical sector, which has continued to receive negative disturbances in recent days, continues to be weak.

On the news, MicroPort Medical announced plans to repurchase approximately US$700 million of zero-coupon convertible bonds due in 2026, and plans to issue an additional US$220 million of 5.75% convertible bonds due in 2028.

This action aroused the market’s attention to MicroPort Medical’s solvency and triggered a collective decline in MicroPort companies.

Recently, a number of stocks in the pharmaceutical sector have been negative. Considering that the industry’s prosperity is still hovering at a low level, it is also worthy of investors’ attention to whether there will be unexpected events that will affect the sector’s market conditions in the future.