In the past week, the Hang Seng Index of Hong Kong stocks has gradually “recovered” after encountering “Black Monday”. By the last trading day of April (29th), the Hang Seng Index has once again stood at the 21,000 mark and is now at 21,089.39 points, a weekly increase of 2.18%.
On April 29, the Political Bureau of the Central Committee of the Communist Party of China held a meeting. The meeting pointed out that it is necessary to promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalized supervision, and introduce specific measures to support the standardized and healthy development of the platform economy. Boosted by this, the Hang Seng Technology Index soared 9.96% that day, directly raising the weekly increase to 11.76%, now at 4471.75 points. In addition, the China Enterprises Index rose 4.68% for the week to 7298.69 points.
For this surge, the chief strategy of China Renaissance Capital GroupanalystPang Ming told the 21st Century Business Herald reporter that the decline in Hong Kong stocks on Monday was mainly due to three pressures: one was affected by the tightening cycle of U.S. interest rate hikes; the other was the domestic epidemic that put pressure on consumer stocks; the third was subject to long-term investment In the cycle, sectors such as infrastructure and real estate performed poorly.
“But now investors have new considerations for the pace and intensity of interest rate hikes in the U.S., and the speed of foreign capital returning to U.S. stocks may also slow down. Coupled with the release of positive signals at the policy level such as the Politburo meeting, Hong Kong stocks The overall pressure faced has eased, and there has been a rebound.” Pang Ming said.
SaaS stocks rise
Bairong Cloud-WUp more than 20% in a week
Last week, the new energy vehicle sector performed well, and “Wei Xiaoli” collectively rose.Ideal Car-WWeekly up 6.26%,Xpeng Motors-WWeekly up 7.46%,NIO-SWIt rose 3.6% for the week.
BYD sharesIt rose 1.81% for the week. On the evening of April 27th,BYDReleased Q1 2022performanceThe report shows that the company achievedOperating incomeAbout 66.825 billion yuan, a year-on-year increase of 63.02%.Attributable to listed companiesshareholderofnet profit808 million yuan, a year-on-year increase of 240.59%.
The SaaS concept sector was higher.Kingdee InternationalWeekly up 8.37%,Mingyuan Cloudup 13.51%,Weimob Grouprose 7.87%.Bairong Cloud-WIt rose 20.72% within the week and is now at HK$10.72 per share, with a total market value of HK$5.381 billion.Guoyuan Securitiesup to dateResearch reportIt is believed that Bairong Yunchuang’s revenue in 2022 will reach 2.01 billion yuan, a year-on-year increase of 24%, and maintain a buy rating on it.
Some blue-chip property stocks fell.new world developmentWeekly down 3.06%,Sun Hung Kai Propertiesfell 3.5% for the week,Henderson LandIt fell 3.63% for the week.
semiconductorSectors generally rose.Notably, penny stocksBrain TechnologyIn the last week, it achieved an increase of 128.45%, in the morning of April 29,Brain TechnologyIt soared 700% at one point, and the stock price once stood at HK$1.02, a 3-year high. It finally closed up 112% on the day and is now at HK$0.265 per share.
Brain TechnologyThe company is mainly engaged in the production and trading of electronic and electrical components. The company’s previously announced 2021 fiscal year annual report shows that the company achieved operating income of HK$322 million from January 1, 2021 to December 31, 2021, a year-on-year increase of 22.83% , the net loss attributable to the parent company was 51.552 million Hong Kong dollars, the loss decreased by 12.26% year-on-year, and the basic earnings per share was -0.06 Hong Kong dollars.
In the coal sector,China Coal EnergyWeekly up 1.52%,Yitai CoalIt rose 2.53% for the week. Both of these coal companies have recently released relatively dazzling first-quarter 2022 performance reports. Some coal stocks also fell,Silk Road Energyfell 20% for the week,Mongolia Energyfell 6.67%.
Platform economy now has favorable policies
Hang Seng Index rose nearly 10% in a single day
In the past week, Chinese concept stocks returning to Hong Kong have generally improved. Specifically,Jingdong Group-SWIt rose more than 27% in the week,Weibo-SWrose more than 10%,Alibaba-SWThe week rose 17.83%, and the stock price returned to the HK$100 mark, and is now at HK$102.1 per share.Bilibili-SWIt rose nearly 20% for the week.
A blockbuster meeting last week gave a big boost to investor confidence. On April 29, the Political Bureau of the Central Committee of the Communist Party of China held a meeting. The meeting mentioned that it is necessary to promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalized supervision, and introduce specific measures to support the standardized and healthy development of the platform economy. As soon as the news came out, the Hang Seng Technology Index rose nearly 10% on the day.Meituan-W，Alibaba-SW，Jingdong Group-SWIt has risen by more than 15% in the same day.
A practitioner of GF International Asset Management Co., Ltd. told the 21st Century Business Herald reporter, “The marginal improvement in policy expectations has significantly eased the market’s previous worries. Looking forward, after continuous adjustment, the valuation of the Hang Seng Technology Index is gradually becoming more cost-effective. , superimposed on the marginal improvement of policy expectations, the price/performance ratio of sector allocation is expected to continue to rise.”
Pang Ming pointed out to the 21 reporter: “In addition to these positive signals, we should also pay attention to the fact that at the subsequent meeting (the Political Bureau of the CPC Central Committee conducted the thirty-eighth collective study on regulating and guiding the healthy development of capital in my country), in fact, There is still mention of focusing on investigating and punishing platform monopoly. At present, we support and supervise the platform economy at the same time, and it is estimated that the overall recovery of Internet companies will take some time.”
Huafang Group’s second sprint to Hong Kong stocks
new sharesaspect,Know-WIt rose 10.2% last week. April 22,Know almostexistHKExCompleted the “dual main listing” and suffered a tragic break at the opening. Last week, the company’s share price finally ushered in a rise, and it is now quoted at HK$27 per share, with a total market value of HK$8.804 billion.
Rico Bio-BIt fell 0.2% for the week. As the “first stock of domestic HPV nine-valent vaccine“, since its listing in Hong Kong on March 31 this year, the share price of Ruike Bio has dropped by 0.2% compared with the issue price, and is now quoted at HK$24.75 per share. On April 29, the company’s 2021 fiscal year annual report showed that the company’s net loss attributable to the parent company from January 1, 2021 to December 31, 2021 was 658 million yuan, the loss increased by 266.53% year-on-year, and the basic earnings per share was – 1.56 yuan.
Recently, Huafang Group has submitted a listing application to the Hong Kong Stock Exchange, and the joint sponsors are CCB International andHaitong International. It is reported that Huafang Group owns products such as Huajiao Live, Liujianfang, etc. The revenue mainly comes from the audio and video live broadcast business. This is not the first time Huafang Group has sprinted into Hong Kong stocks. The website of the Hong Kong Stock Exchange shows that the listing application materials submitted by Huafang Group on October 25, 2021 are now in an “invalid state”.
It is worth noting that at present, the largest shareholder of Huafang Group is Zhou Hongyi, the “red leader”, holding 38.12% of the shares, and the second largest shareholder is an A-share listed company.Songcheng Performing Artsholding 37.06% of the shares through a wholly-owned subsidiary, Global Bacchus Limited.
New futures contract months to be introduced in June
April 28,HKExannounced that the Hang Seng Index andHang Seng China EnterpriseThe index futures contract month, the new futures contract month is tentatively scheduled to be launched from June 13, 2022, and the proposal is subject to regulatory approval.
In Pang Ming’s view, this is bound to be a big plus. “First, this will cover more trading hours, which is a great satisfaction for the trading needs of global investors, and people’s demand for MSCI China A50 Connectivity Index futures contracts will also increase; second, the contract month’s The increase also facilitates risk hedging for investors.”
The above-mentioned GF practitioners also believe that this will lead to finer futures contracts, more hedging tools and more diverse investments. “However, it should be noted that the risks of futures themselves are relatively high, and the futures of the Hong Kong Stock Exchange have lower contract margin requirements than the domestic CFFEX. Investors need to pay attention to risk control.”
This week ahead
transaction hour
Hong Kong stock market: May 2 (Monday) will be closed for May 1st Labor Day, and trading will resume as usual from May 3 (Tuesday). The market will be closed on May 9 (Monday) for Buddha’s birthday.
Stock Connect: From April 28th (Thursday) to May 4th (Wednesday), the service will not be available due to the May 1st Labor Day, and the service will be opened as usual from May 5th (Thursday). There will be no service on May 9 (Monday) due to Buddha’s birthday.
Company financial report
Hong Kong stocksYum China、BeiGene、Budweiser Asia PacificWaiting for the company to release its financial report.
Economic data
Monday (May 2): US ISM ManufacturingPMIU.S. construction spending monthly rate, Eurozone economic sentiment index &consumer confidence indexend value
Tuesday (May 3): U.S. factory orders monthly rate, RBAinterest rateDecision, Germany Seasonally Adjusted Unemployment & Unemployed, Hong Kong, ChinaGDPAnnual & Quarterly Rates, Euro AreaPPIAnnual rate & quarter rate
Wednesday (May 4): US ADP employment, US trade account, US ISM non-manufacturing PMI, US weekly EIA crude oil inventories &gasolinein stock
Thursday (May 5): Federal Reserveinterest rateDecision, China Caixin Services PMI, UK Services PMI, Bank of England Interest Rate Decision
Friday (May 6): U.S. seasonally adjusted nonfarm payrolls, U.S. unemployment rate
(Article source: 21st Century Business Herald)