The A-share market saw a full correction today, with a significant outflow of northbound funds; Hong Kong stocks also weakened, with the Hang Seng Index falling more than 1%.
Specifically, the stock indices of the two markets experienced weak fluctuations and fell further during the trading session, with the Beijing Composite Index 50 and the Science and Technology Innovation Index 50 falling more than 1%. As of the close, the Shanghai Composite Index fell 0.72% to 3062.76 points, the Shenzhen Component Index fell 0.58% to 9696.69 points, the ChiNext Index fell 1.01% to 1906.94 points, and the Science and Technology Innovation 50 Index fell 1.65%; The total transaction volume between the two cities is 1077.9 billion yuan, a decrease of 60 billion yuan from yesterday; Northbound funds flowed out significantly, with a net selling of about 7 billion yuan throughout the day, ending seven consecutive days of increased positions.
Over 3400 stocks in the two markets have drifted green, with securities, insurance, and banking sectors collectively falling, while sectors such as pharmaceuticals, automobiles, and real estate have shown weak trends; The agricultural sector has made strong efforts to pull up, with pork and chicken stocks performing well. Xiangjia Shares, Shennong Group, Aonong Biotechnology and others have hit the limit up, while Juxing Agriculture and Animal Husbandry have risen nearly 9%; Coal, steel, oil and other sectors rose, with New Continent A achieving four consecutive rebounds, while Uni President and Compton rose the daily limit; The concept of intelligent driving has exploded, with Tianmai Technology, Wanji Technology and others hitting the daily limit; The concept of consumer electronics continues to be active, with companies such as Zijian Electronics, Derun Electronics, and Furong Technology hitting the limit up; The CPO concept is strong, with Huafeng Technology, Zhaolong Interconnection and other companies hitting the limit up. In addition, Aiai Precision Industry has hit a new historical high by hitting the daily limit up for 11 consecutive days, and Yongyue Technology has achieved 6 consecutive rebounds.
The two major stock indices in Hong Kong have experienced a significant decline, with the Hang Seng Index falling more than 1% and the Hang Seng Technology Index falling more than 2% at one point. As of the close, the Hang Seng Index fell 1.24% to 16529.48 points, while the Hang Seng Technology Index fell 1.83% to 3528.47 points. In terms of individual stocks, Ideal Automobile fell by about 8%, while NIO fell by over 6%; WuXi AppTec fell by over 7%, while WuXi AppTec fell by nearly 6%; Country Garden and Vanke Enterprises fell more than 5%; China's Burton surged by over 25%.
It is worth noting that Ideal Automobile plummeted nearly 10% during the trading session and closed down about 8%, with its latest market value of HKD 271.4 billion. Some analysts believe that the drop in Ideal stock price may be related to the poor sales of MEGA models recently announced. According to reports, it has been half a month since the release of MEGA, and Ideal has not disclosed the order data for MEGA and L series. The expected order for MEGA within 24 hours was around 3000 vehicles, but the final result did not meet expectations, only achieving half of the target.
The concept of intelligent driving has exploded
The concept of autonomous driving has strongly risen, with Tianmai Technology, Wanji Technology, Weidi Shares, Jinyi Technology, Ruima Precision, Xingmin Zhitong and other companies hitting the limit up as of the close, while Jingwei Hengrun rose by over 9%.
On the news front, NVIDIA founder and CEO Huang Renxun announced at NVIDIA's 2024 GTC conference that NVIDIA's next-generation smart car chip Thor has reached cooperation with three Chinese car manufacturers.
Huang Renxun stated that NVIDIA's next-generation automotive intelligent chip DRIVE Thor is specifically designed for the Transformer engine and will be adopted by BYD. In addition, the Haobo brand under GAC Ai'an also announced that the next generation L4 autonomous vehicle will use DRIVE Thor chips, and it is planned to start mass production in 2025. Xiaopeng Motors will also adopt DRIVE Thor as the AI brain for its next generation model.
In addition, Yu Chengdong, Chairman of Huawei Intelligent Automotive Solutions BU, recently stated at the China Electric Vehicle Hundred People Conference Forum (2024) that Changan Automobile's Deep Blue Automobile will adopt the Huawei HI (Huawei Inside) model in the future, and Dongfeng Automobile's Lantu Automobile and Mengshi Technology will also adopt similar cooperation. Huawei's deeper technological bundling and joint development with vehicle enterprises will accelerate the development of automotive intelligence.
Guohai Securities pointed out that advanced intelligent driving is expected to enter a high-volume cycle in 2024; High end: Upgrading the structure of independent brands and shifting up the coverage of product price bands; Globalization: Domestic vehicle manufacturers have entered a period of overseas expansion, and overseas bases for high-quality domestic components will gradually enter a harvest period in 2024. The automotive industry is still undergoing rapid technological changes, structural upgrades, and overseas expansion. From a medium to long-term perspective, high-quality automotive companies are expected to continue to grow and improve in the new round of industrial transformation.
Agricultural sector is rising
The agricultural sector has made strong efforts to rise, with pork and chicken stocks performing well. As of the close, Boen Group, Shennong Group, Xiangjia Shares, Aonong Biotechnology and others have hit the limit up, while Giant Farming and Animal Husbandry have risen nearly 9%. Xiaoming's shares rose by over 6%.
In terms of the industry, due to the impact of the entry of secondary education, pig prices have continued to rebound slightly recently. Last weekend, the ex factory price of live pigs in 22 provinces and cities across the country was 14.47 yuan/kg, with a weekly increase of 0.16 yuan; The entry of secondary breeding objectively or continuously for a period of time, and the severe breeding epidemic from October to December 2023 led to a decrease in piglet inventory, which in turn affected the output and supply of live pigs from March to May, both of which will affect short-term pig prices.
Regarding this, China Post Securities pointed out that the short-term price rebound does not affect the trend of long-term capacity depletion: 1) After a full year of significant losses in 2023, many companies in the industry have extremely tight cash flow. Currently, the pattern of strong supply and weak demand is difficult to change, and industry losses will continue, which will accelerate the exit of enterprises; 2) From the situation in the northern region at the end of 2023, the virus situation in this round is more complex than in previous years. With the arrival of spring, the disease prevention and control of southern farmers will face challenges; 3) Currently, the industry is generally cautious in its expectations, and some companies have lowered their targets for listing in 2024.
Debon Securities stated that in the early stage, the secondary breeding and breeding pigs under pressure will be gradually released from the market, coupled with weight gain, and pig prices are expected to be under pressure under the situation of strong supply and weak demand. As losses accumulate over time, the industry's cash flow situation is expected to intensify, and capacity depletion is expected to continue. At present, the valuation of the sector is relatively low, and it is recommended to focus on stable industry leaders.
11 consecutive board bull stocks indicate risk
Ai Ai Precision (603580) once again hit the limit up today, with its stock price continuing to reach a historic high. As of the close, the stock was trading at 26.96 yuan, with over 18000 orders on the daily limit up board. At this point, the stock has hit the limit up for 11 consecutive trading days, with a cumulative increase of about 185%.
The company issued a risk warning again yesterday evening, stating that after self inspection, the company's production and operation activities are normal, and there have been no significant changes in the internal and external operating environment. There is no significant information that should have been disclosed but has not been disclosed that affects the abnormal fluctuations of the company's stock. The company has not found any media reports or market rumors that may have a significant impact on the trading price of the company's stock price, nor has it involved the concept of market hotspots.
At present, the company's main business has not changed. Its main business is the research and development, production, and sales of light conveyor belts, and does not involve market hot concepts such as robots. For the film used for solar cell packaging, the company is still in the early stage of research and development, and there is great uncertainty about whether it can be smoothly developed and put into production in the future, which has no impact on the company's performance in the short term. Recently, the company's stock price has risen significantly, and there may be irrational speculation risks. Investors are advised to pay attention to discrimination, rational judgment, and investment risks.
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