hang seng indexOpened 0.44% higher, with strong new carmakers, Weilai rose 6%, Xiaopeng Motors rose nearly 4%; most technology and Internet stocks opened higher, Meituan rose 1.3%, and Alibaba rose 1.8%.BeiGeneIt rose by more than 7%, and will resolutely defend against the allegations of patent infringement. Oil stocks opened slightly higher,China PetroleumShares rose 1.2 percent.
Overnight market review
U.S. stocks closed higher on Thursday. The Dow rose more than 400 points. Both the S&P 500 and the Nasdaq posted their sixth straight session of gains and hit 13-month highs. The Fed skipped raising interest rates in June but signaled it would still raise rates two times this year. Investors are betting the Fed is close to finishing raising interest rates. U.S. retail sales beat expectations in May. As of the close, the Dow Jones index rose 1.27%, the Nasdaq index rose 1.15%, and the S&P 500 index rose 1.22%.
Most of the large technology stocks rose, Microsoft rose more than 3%, hitting a new closing high, Meta rose more than 2%, Apple rose 1.12%, the total market value reported 2.935 trillion US dollars, only 2.2% away from the 3 trillion mark, and Google rose more than 1%. The oil and gas drilling, papermaking, and coal sectors were among the biggest gainers. Nabors Industries rose more than 6%, and Suzano rose more than 3%. The semiconductor and gaming sectors fell, Navitas fell more than 4%, AMD and Ambarella fell more than 2%.
Popular Chinese concept stocks generally rose, and the Nasdaq China Golden Dragon Index rose 2.10%. Weilai rose by more than 8%, Xiaopeng Motors rose by more than 7%, iQiyi rose by more than 5%, Bilibili, JD.com, and Alibaba rose by more than 3%, Pinduoduo rose by more than 2%, Ideal Auto, Vipshop , Futu Holdings, Baidu, and Manbang rose more than 1%, and Weibo rose slightly.
Regarding the market outlook of Hong Kong stocks, it is worth mentioning that, according to Wall Street, recently, against the background of strong U.S. stocks and relatively weak performance of AH stocks, the “cheapness” of Hong Kong stocks compared with U.S. stocks has once again touched the upper limit of the historical fluctuation range since 2017.
On the premise that the historical fluctuation range of this ratio will not be continuously broken, this indicator may mean that: in the current economic environment, US stocks continue to rise sharply (meaning that valuations continue to rise if earnings are not revised up significantly) At the same time, the possibility of Hong Kong stocks continuing to weaken sharply (meaning that valuations will continue to weaken if earnings are not revised down significantly) is low.
CICCIt was previously said that from all dimensions, Hong Kong stocks are in the bottom area. Looking forward to the second half of 2023, the Hong Kong stock market is expected to achieve a certain degree of “reversion to the mean”, but it may be at a relatively low level of equilibrium before the emergence of a real growth “grasp”. Overall, MSCI China and the Hang Seng Index are expected to have 10-15% upside potential at current levels, driven mainly by 7% profit contribution and 2-8% valuation repair.
Sealand Securities stated that the Fed’s suspension of interest rate hikes does not mean that it will stop raising interest rates. The dot plot implies that there are two more possible rate hikes this year. In addition, Powell also said that it is inappropriate to cut interest rates this year, and no policy maker expects to cut interest rates this year. The bank believes that the termination or suspension of interest rate hikes in the United States is conducive to the rebound of Hong Kong stocks, but the pace of my country’s economic recovery also has a decisive impact on the trend of Hong Kong stocks.
List of important news of Hong Kong stocks
The Commissioner’s Office of the Ministry of Foreign Affairs in Hong Kong is warning European Parliament politicians: Containing China with Hong Kong is doomed to fail
The spokesperson of the Commissioner’s Office of the Ministry of Foreign Affairs in Hong Kong condemned the European Parliament’s adoption of the Hong Kong-related resolution, stressed that Hong Kong is a society ruled by law, and no one has the privilege of being above the law, and called on politicians in the European Parliament to stop political performances, respect the rule of law, and stop interfering in Hong Kong affairs and China. internal affairs.
This forum is held in Hong Kong for the first time! The world’s top institutions gather together…
The Greenwich-Hong Kong Forum was held in Hong Kong for the first time, attracting the participation of the world‘s top institutions. The topics focused on the opportunities and challenges of China’s economic restart, and discussed the major changes in the global economic model. Hong Kong will serve as a bridge of communication between China and the West, supporting high-quality development.
Keep the base interest rate unchanged at 5.5%
The interest rate gap between Hong Kong dollar and US dollar has widened. The carry trade has driven funds out of the Hong Kong dollar system, and the Hong Kong dollar interbank rate has risen. The Hong Kong Monetary Authority has decided to maintain the basic interest rate unchanged to maintain the stable operation of the Hong Kong dollar market.
List of important news of Hong Kong stocks
1) Company news
China Shenhua(01088): The cumulative coal sales in the first five months were about 181 million tons, an increase of 1.7% year-on-year; the cumulative electricity sales were 77.31 billion kwh, a year-on-year increase of 15.3%.
Coal sales in May were 36.7 million tons, an increase of 4% year-on-year; electricity sales were 14.64 billion kWh, an increase of 33% year-on-year.
China Eastern Airlines(00670): Passenger transport capacity investment in May increased by 465.07% year-on-year; passenger turnover increased by 551.08% year-on-year; passenger load factor was 70.03%, an increase of 9.25 percentage points year-on-year; cargo and mail turnover increased by 13.77% year-on-year.
China Southern Airlines(01055): Passenger transport capacity investment in May increased by 181.36% year-on-year; passenger turnover increased by 248.04% year-on-year; passenger load factor was 75.25%, an increase of 14.42 percentage points year-on-year; cargo and mail turnover ratio decreased by 3.91%.
Air China(00753): In May, passenger transport capacity investment increased by 329.1% year-on-year, and passenger turnover increased by 410.5% year-on-year; the average passenger load factor was 68.2%, an increase of 10.9 percentage points year-on-year; cargo and mail turnover decreased by 34.7% year-on-year.
CRRC(01766): It is planned to transfer 64.52% of CRRC Chengdu’s equity to its wholly-owned subsidiary CRRC Sifang for free. The audited net book value of this equity is about 1.547 billion yuan.
Shenzhen Holdings(00604): The cumulative contract sales in the first five months were 4.510 billion yuan, a year-on-year increase of 121.5%; the contract sales in May were 1.218 billion yuan, a year-on-year increase of 261.4%.
MCC(01618): The cumulative value of newly signed contracts in the first five months was 539.81 billion yuan, a year-on-year increase of 8.1%.
Jianye Industrial(00216): It is estimated that the annual net profit until March 2023 will decrease by 30%-40% year-on-year, and the profit in the same period last year was 55.7 million yuan.
Hon Kwok Real Estate(00160): Released a profit announcement, expecting an increase of approximately 70% in annual net profit attributable to shareholders.
Su Xin Service(02152): Proposed to sell 3.167% equity of Suzhou Huirong Business Travel Development.
2) Repurchase Dynamics
Tencent Holdings(00700): Spending HK$402 million to repurchase 1.14 million shares at a price of HK$348.4-355.0 per share.
AIA(01299): Spend 132 million Hong Kong dollars to repurchase 1.6168 million shares, and the repurchase price per share is 81.05 Hong Kong dollars-83 Hong Kong dollars.
Cheung Kong Group(01113): Spend 46.773 million Hong Kong dollars to repurchase 1.0515 million shares, and the repurchase price per share is 44.40-44.55 Hong Kong dollars.
JS Global Life(01691): 3.8 million shares were repurchased at approximately HK$30.5658 million at a price of HK$7.97-8.1 per share.
HSBC Holdings(00005): Spending about HK$122 million to repurchase 2.0304 million shares, the repurchase price per share is HK$59.65-60.15.
This article is reproduced from “Tencent Self-selected Stocks”, edited by Zhitong Finance: Chen Wenfang.
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