After three consecutive weeks of decline, the Hong Kong stock market saw a collective oscillation and rise in major indices on Wednesday of this week. As of the close, the technology index has risen by 1.51% to close at 3436.80 points; During the same period, the Hang Seng Index and the State owned Enterprises Index rose by 0.85% and 0.72% respectively, closing at 17090.23 points and 6017.85 points.
Of particular note is that after three consecutive weeks of adjustment, the technology index has finally rebounded this week. Other types of indices have also shown similar upward trends.
Note: Recent weekly performance of Hang Seng Technology Index
The trend of the peripheral market once caused concerns
This week, the Hong Kong stock market experienced an& quot; Black Monday& quot;， This phenomenon is closely related to the poor performance of global stock markets. Last Friday, the three major stock indexes in the United States fell significantly, with the Nasdaq index leading the decline with a drop of over 2%. The main reason was that the employment data for July did not meet market expectations, leading to a sharp increase in concerns about an economic recession.
On Monday, Asian markets also suffered heavy losses, with stock markets in multiple countries plummeting. For example, the Nikkei 225 index plummeted 12.4%, the CSI index fell 12.23%, and South Korea's main stock index Kosdaq also fell 8%. During this process, the futures trading of the Nikkei 225 Index and the CSI Index even triggered the circuit breaker mechanism twice.
Until Tuesday, there were signs of a rebound in the peripheral markets, and the three major US stock indexes ended their three-day decline and collectively closed higher.
There are reports that the volatility of the US stock market is closely related to Japan's carry trades. However, Vice Governor of the Bank of Japan, Masakazu Uchida, sent a clear dovish signal on Wednesday to calm market sentiment. He made it clear in public that the Bank of Japan will not take any interest rate hike measures in the face of market instability. This statement helps alleviate market tension.
NIO and Xiaopeng Motors led the decline this week
From the perspective of individual stocks on the main board of the Hong Kong stock market, Huahong Semiconductor (01347. HK), Xiaopeng Auto-W (09868. HK), and NIO-SW (09866. HK) have respectively fallen 6.51%, 5.94%, and 5.82% this week.
The stock prices of NIO and Xiaopeng Motors have fallen, mainly due to the overall poor performance of the automotive market in July. According to data from the China Association of Automobile Manufacturers, the production and sales of automobiles in July both decreased compared to the previous month and compared to the same period last year. However, today, the stock prices of these two companies have rebounded.
The stock price adjustment of Huahong Semiconductor is related to the second quarter report released today. A Citigroup research report pointed out that although the company's capacity utilization rate is expected to reach full capacity from the second half of the year to next year, it is cautious about its profitability and gross profit margin prospects, and has given a "sell" rating.
During the same period, New Oriental S (09901.HK), WuXi AppTec (02359.HK), and Alibaba SW (09988.HK) rose by 11.58%, 4.84%, and 3.32% respectively.
The rise of New Oriental is due to the approval of the company's board of directors to expand its share repurchase plan and increase the repurchase authorization to $700 million, valid until May 31, 2025. In addition, the "Opinions on Promoting the High Quality Development of Service Consumption" issued by the State Council also constitutes a positive factor for it.
Alibaba's strength is due to positive market expectations for its upcoming dual major listing. According to Guotai Junan's analysis, it is expected that this change will be completed in September, when Alibaba's stock has the potential to be included in the Hong Kong Stock Connect, which will further enhance its market liquidity and investor base.
The rise in WuXi AppTec's stock price is due to favorable policies. The "Several Opinions on Supporting the Innovative Development of the Whole Chain of the Biomedical Industry" released by Shanghai has introduced 37 policy measures, providing strong support for the biopharmaceutical industry.
Southbound funds
This week, southbound funds continued to make net purchases, with a cumulative amount of HKD 15.239 billion, an increase of HKD 6.054 billion from last week.
Note: Performance of Southbound Funds This Week
Today's market
This week, there are signs of recovery in the Hong Kong stock market, with today's market being particularly prominent. As of the close, the Hang Seng Index rose 1.17%, the Technology Index rose 2.08%, and the State owned Enterprises Index rose 1.29%.
From the perspective of individual stocks, semiconductor, automotive, gaming, real estate and other stocks rose, while telecommunications stocks slightly weakened.
Semiconductor stocks top the list, SMIC rises nearly 5%
In semiconductor stocks, Jingmen Semiconductor (02878. HK), SMIC (00981. HK), and Shanghai Fudan (01385. HK) rose 5.56%, 4.94%, and 0.18% respectively
Note: Performance of semiconductor stocks
In terms of news, SMIC released its second quarter results last night, with revenue of $1.9 billion, a month on month increase of 8.6%, a year-on-year increase of 21.8%, and a market estimate of $1.84 billion; Net profit was $164.6 million, a year-on-year decrease of 59%, with a market estimate of $76.3 million.
The unexpected financial report of SMIC has had a positive effect on the entire semiconductor sector, driving the collective rise of related semiconductor stocks.
Most automotive stocks rebound, ideal cars rise by over 5%
In the automotive stock market, Ideal Auto-W (02015. HK), Xiaopeng Auto-W (09868. HK), and NIO-SW (09866) rose 5.45%, 3.75%, and 3.10% respectively.
Note: Performance of automotive stocks
From the above chart, Ideal Auto is leading the increase. In terms of news, Ideal Auto delivered 51000 new cars in July, a year-on-year increase of 49.4%, breaking a historical high; The Ideal L6 still performs well, with sales exceeding 20000 for two consecutive months.
Gaming stocks continue to rebound, NetEase rises over 3%
In gaming stocks, IGG (00799. HK), NetEase S (09999. HK), and Heartbeat Company (02400. HK) rose 3.83%, 3.09%, and 2.85% respectively
Note: Performance of gaming stocks
In terms of news, NetEase led the rise of related stocks. According to Sensor Tower data, the NetEase mobile game "Eternal Tribulation" had 4.14 million downloads on Apple's iOS system in the Chinese market in the first two weeks, comparable to the performance of Tencent's "Dungeon Fighter" mobile game when it was first released.
Positive policies continue to stimulate real estate stocks, with Shimao Group rising 8%
Among the real estate stocks, Shimao Group (00813. HK), New City Development (01030. HK), and Greentown China (03900. HK) rose 8.57%, 4.90%, and 3.85% respectively.
Note: Performance of real estate stocks
In terms of news, CRIC Real Estate Research pointed out that the total financing amount of 65 typical real estate companies in July 2024 was 52.346 billion yuan, an increase of 63.8% month on month and a decrease of 9% year-on-year. The financing scale in a single month reached a new high since 2024, mainly due to Vanke obtaining 32.666 billion yuan in bank loans.
Telecom stocks collectively under pressure, China Mobile's revenue growth slows down in the first half of the year
In the telecommunications sector, China Telecom (00728. HK), China Unicom (00762. HK), and China Mobile (00941. HK) fell 3.86%, 3.79%, and 1.31% respectively.
Note: Performance of Telecommunications Stocks
In terms of news, a research report by CITIC Lyon pointed out that Chinese telecommunications companies had poor performance in the first half of this year, and it is expected that the growth rate of total service revenue will decrease by 3% to 4%. The report also predicted that the growth rate of China Mobile's industrial Internet business income would slow to about 10%, while the corresponding business income growth of China Telecom and China Unicom would fall to single digits.
In addition, China Mobile recently released its performance report for the first half of 2024, announcing that its operating revenue reached 546.7 billion yuan, a year-on-year increase of 3.0%; The profit attributable to shareholders was RMB 80.2 billion, a year-on-year increase of 5.3%, and an interim dividend of HKD 2.60 per share was announced. According to a research report by HSBC, China Mobile's revenue in the first half of the year was slightly lower than expected, with a decrease of 1.7%, mainly due to the low value of new users and the reduction in data usage, resulting in a decrease in average mobile revenue (ARPU).
Stock News and Changes
Huazhu Group rises nearly 6%, recently announces $2 billion shareholder return plan
Huazhu Group-S (01179. HK) rose 5.95% to close at HKD 22.25. On the news front, Huazhu previously announced that in order to enhance shareholder value, the board of directors has approved a three-year shareholder return plan, effective from July 23, 2024, which may distribute a total of up to $2 billion to the company's shareholders.
Inspur Digital Enterprises Rise Nearly 4%, Institutions Report Adequate Demand for ERP Domestic Replacement
Inspur Digital Enterprise (00596. HK) rose 3.61% to close at HKD 3.44. Dongwu Securities pointed out that the country has proposed to complete 100% domestic substitution for party and government organs and eight key industries by 2027. ERP, as the core platform for enterprise data management, is undergoing localization in sync with the trend of enterprises going cloud. The bank pointed out that due to the emphasis on information and data security, customers of state-owned enterprises have more trust in state-owned background brands. As the only comprehensive large-scale ERP manufacturer with state-owned assets background, Inspur Digital Enterprise is more likely to win the favor of central state-owned enterprises in the selection of ERP localization.